PWRD(SZ:002624) KAIYUAN SECURITIES·2024-11-07 03:23Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has completed strategic adjustments that may drive efficient and healthy development, maintaining a "Buy" rating [1] - The launch of new games, including "Zhu Xian World" and "Yihuan," is expected to initiate a new product cycle, potentially reversing the company's performance [4] - The company has adjusted its profit forecasts for 2024-2026, expecting net profits of -589 million, 788 million, and 1.204 billion yuan respectively, with corresponding EPS of -0.30, 0.41, and 0.62 yuan [4] Financial Summary - Current stock price is 12.16 yuan, with a total market capitalization of 235.90 billion yuan [2] - The company’s revenue for 2024 is projected to be 5.293 billion yuan, a year-over-year decrease of 32.1%, followed by a recovery in 2025 and 2026 with revenues of 7.223 billion and 8.234 billion yuan respectively [6] - The company’s net profit for 2024 is expected to be -589 million yuan, with a significant recovery to 788 million yuan in 2025 and 1.204 billion yuan in 2026 [6] - The gross margin is projected to be 59.8% in 2024, improving to 61.5% in 2025 and 61.9% in 2026 [6] Product Insights - "Zhu Xian World," set to launch on December 19, is based on the Unreal Engine 5 and features rich gameplay, including PVP and PVE elements, which have received positive feedback from players [3] - The game adopts a seasonal payment model, focusing on long-term operation without selling value, which is expected to enhance user retention [3] - "Yihuan," another upcoming title, has generated significant interest with over 9 million views on its promotional content, indicating strong potential for future performance [5]