YAOJI TECHNOLOGY(002605) ZHONGTAI SECURITIES·2024-11-08 05:57Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The gaming industry is gradually recovering, but business adjustments have impacted revenue release [1] - The company has experienced a decline in revenue due to structural adjustments in its digital marketing segment and fluctuations in gaming recharge flow [1] - The company's flagship fishing game product has shown signs of recovery, which is expected to positively influence future revenue [1] Financial Summary - Revenue (in million CNY): - 2022A: 3,915 - 2023A: 4,307 (10% YoY growth) - 2024E: 3,978 (-8% YoY) - 2025E: 4,324 (9% YoY) - 2026E: 4,612 (7% YoY) [1] - Net Profit (in million CNY): - 2022A: 349 - 2023A: 562 (61% YoY growth) - 2024E: 618 (10% YoY growth) - 2025E: 705 (14% YoY growth) - 2026E: 753 (7% YoY growth) [1] - Earnings Per Share (CNY): - 2023A: 1.36 - 2024E: 1.50 - 2025E: 1.71 - 2026E: 1.83 [2] - Return on Equity (ROE): - 2023A: 17% - 2024E: 16% - 2025E: 16% - 2026E: 14% [1] - Price-to-Earnings Ratio (P/E): - 2023A: 19.7 - 2024E: 17.6 - 2025E: 15.4 - 2026E: 14.4 [1] - Price-to-Book Ratio (P/B): - 2023A: 3.4 - 2024E: 2.9 - 2025E: 2.5 - 2026E: 2.2 [1] Market Performance - The company's stock price has been affected by adjustments in the digital marketing sector and fluctuations in gaming revenue, leading to a year-on-year decline in revenue [1] - The company aims to focus on higher-margin businesses in its marketing segment, which is expected to improve profitability in the future [1]