Hubei Century Network Technology (300494) 国盛证券·2024-11-06 17:05Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company reported a revenue of 852 million yuan for the first three quarters of 2024, a year-on-year decline of 21.27%. The net profit attributable to shareholders was 2.45 million yuan, down 98.63% year-on-year. The third quarter saw a revenue of 313 million yuan, an increase of 15.61% year-on-year and 9.37% quarter-on-quarter [1]. - Several new games were launched in the first three quarters, but high promotional costs led to a decrease in gross margin, which fell by 13.46 percentage points to 15.11% [1]. - The company has received an import license for the IP game "Three Kingdoms: Double Heaven" and plans to conduct player testing within the year [1]. - The AI audio technology "Give Mai" has been continuously upgraded, with significant user engagement reflected in its ranking on the iOS music app chart [1]. Financial Summary - For 2024, the company is projected to achieve revenues of 1.156 billion yuan, a decline of 13.0% year-on-year, with net profit expected to be -4 million yuan [2]. - The earnings per share (EPS) for 2024 is forecasted at -0.01 yuan, with a P/E ratio of -1365.3 [2]. - The company’s revenue is expected to grow to 1.457 billion yuan in 2025 and 1.705 billion yuan in 2026, with respective growth rates of 26.0% and 17.0% [2]. Stock Information - The company operates in the gaming industry and had a closing price of 11.29 yuan on November 5, 2024, with a total market capitalization of approximately 5.54 billion yuan [3]. - The free float of shares is 81.20%, and the average trading volume over the last 30 days was 31.97 million shares [3]. Price Performance - The stock has experienced significant fluctuations, with a peak decline of 50% observed from November 2023 to November 2024 [4].