PWRD(SZ:002624) Guoyuan Securities·2024-11-07 00:32Investment Rating - The report assigns a "Buy" rating to the company, indicating a positive outlook for its stock performance relative to the benchmark index [3][10]. Core Views - The company's short-term performance remains under pressure, but there are signs of improvement in its gaming business. The third quarter of 2024 saw a revenue of 1.313 billion yuan, a year-on-year decline of 24.36%, but the gaming business's operational performance is showing signs of recovery [2]. - The company is focusing on the launch of new products, particularly the game "Zhu Xian World," which is set to officially launch on December 19, 2024. This new release is expected to boost the company's performance [2]. - The company is actively exploring the application of AI technology in game development and operations to enhance efficiency and player experience [2]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported a revenue of 4.073 billion yuan, a year-on-year decline of 34.26%, and a net loss attributable to shareholders of 389 million yuan, a year-on-year decline of 163.25% [2]. - The third quarter alone saw a revenue of 1.313 billion yuan, with a net profit attributable to shareholders of 212 million yuan, down 190.27% year-on-year [2]. - The company’s gaming business reported a net loss of approximately 94.67 million yuan in Q3, primarily due to losses from invested enterprises [2]. Product Development and Strategy - The company is advancing the development and testing of new games, including "Zhu Xian World" and "Yihuan," with positive feedback from players during testing phases [2]. - The company plans to continue its focus on quality over quantity in its film and television business, aiming for innovative integration in the "film+" sector [2]. Profit Forecast - The profit forecast for the company from 2024 to 2026 is as follows: net profit attributable to shareholders is projected to be -458 million yuan in 2024, 537 million yuan in 2025, and 713 million yuan in 2026. The corresponding EPS is expected to be -0.24 yuan, 0.28 yuan, and 0.37 yuan respectively [3].