PWRD(002624) 华创证券·2024-11-06 11:09Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [1][15]. Core Insights - The company's Q3 2024 financial results show a revenue of 1.3 billion yuan, a year-over-year decline of 24%, and a quarter-over-quarter decline of 8%. The gross profit was 680 million yuan, down 38% year-over-year and up 25% quarter-over-quarter. The net profit attributable to shareholders was -210 million yuan, marking a shift from profit to loss year-over-year and a 44% decline quarter-over-quarter [1]. - The company has undergone a restructuring of its existing business, which has led to some one-time expenses and underperformance in certain gaming and film products, resulting in pressured earnings [1]. - The gaming business has shown signs of recovery, with operational profitability turning positive after adjustments. The report anticipates that the gaming business will maintain its current positive trend [2]. - The company has a rich pipeline of key products expected to drive operational improvement in 2025, including flagship IP MMORPG "Zhu Xian World" and other significant titles [2]. - The film and television segment continues to focus on a "quality over quantity" strategy, aiming to control investment risks in response to market changes [2]. - The earnings forecast for 2024-2026 has been adjusted, with expected revenues of 5.5 billion, 8.1 billion, and 9.8 billion yuan respectively, reflecting a year-over-year change of -30%, +48%, and +21% [2][3]. Financial Summary - For 2024, the company is projected to have a total revenue of 5.451 billion yuan, a decrease of 30% year-over-year. The net profit attributable to shareholders is expected to be -553 million yuan, a decline of 212.5% [3]. - The earnings per share (EPS) is forecasted to be -0.29 yuan for 2024, with a projected PE ratio of -39 [3]. - The company’s total assets are estimated to be 12.645 billion yuan in 2024, with a debt-to-equity ratio of 35.08% [3][4].