SANQI HUYU(002555) Changjiang Securities·2024-11-06 01:54Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a slight decline in revenue due to the natural decrease in existing game revenue and the impact of new game launches on marketing expenses. In Q3 2024, the company achieved revenue of 4.107 billion (down 4.09% YoY and 8.35% QoQ) and a net profit attributable to shareholders of 633 million (down 34.51% YoY and 2.41% QoQ) [3][4]. - The company plans to distribute a cash dividend of 2.1 yuan per 10 shares, maintaining the same amount as in Q1 and Q2, with a total cash dividend exceeding 460 million, accounting for over 70% of Q3 net profit. The dividend yield for the first three quarters is 3.9% based on the closing price on October 31 [3][4][5]. - The new game cycle has begun, with a rich product reserve, and attention is focused on the testing and launch progress of key new games [5]. Summary by Sections Revenue and Profit Performance - In Q3 2024, the company reported revenue of 41.07 billion (down 4.09% YoY and 8.35% QoQ) and a net profit of 6.33 billion (down 34.51% YoY and 2.41% QoQ). The non-recurring net profit was 6.02 billion (down 37.41% YoY and 8.56% QoQ) [3][4]. Dividend Distribution - The company plans to distribute 2.1 yuan per 10 shares, with a total cash dividend exceeding 460 million, representing over 70% of Q3 net profit. The dividend yield for the first three quarters is 3.9% based on the closing price on October 31 [3][4][5]. New Game Launches - The company has seen a bright performance from new games, with several titles entering the top-selling lists in the mini-game sector. The new game "Time Grocery Store" has contributed positively since its launch [3][4][5]. - The company has a rich pipeline of new games, including "Gods Dawn: Conquest" and "Douluo Dalu: Soul Master Showdown," which are expected to be launched in Q4 [5]. Financial Forecast - The company is projected to achieve net profits of 2.54 billion and 2.91 billion in 2024 and 2025, respectively, with corresponding PE ratios of 14.3 and 12.5 times [5].