ZDDC(600633)2024-11-09 08:37Investment Rating - The report maintains a "Buy" rating for the company [1][10]. Core Views - The company has shown impressive investment returns, with significant profit growth in Q3 2024, boosting investor confidence through continuous share buybacks [3][7]. - The company reported Q3 2024 revenue of 756 million yuan, a year-over-year increase of 26.27%, and a net profit of 327 million yuan, reflecting a remarkable year-over-year growth of 451.29% [2][3]. - The integration of the Zhejiang Big Data Trading Center into the company's financials is expected to enhance resource consolidation and contribute to performance growth [5][7]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 756 million yuan, with a net profit of 327 million yuan, and an investment income of 168 million yuan, a significant turnaround from a loss of 2.23 million yuan in Q3 2023 [3]. - The net profit margin for Q3 2024 was 43.91%, up by 35.31 percentage points year-over-year, while the gross margin was 53.86%, down by 20.32 percentage points year-over-year [3]. - For the first three quarters of 2024, the company reported a total revenue of 2.169 billion yuan, a decrease of 5.20% year-over-year, and a net profit of 475 million yuan, down 31.38% year-over-year [3]. Business Developments - The company has completed a share buyback plan, acquiring 10.86 million shares, approximately 0.858% of the total share capital, for a total amount of 99.94 million yuan at an average price of 9.20 yuan per share [3]. - The company’s subsidiary, Bianfeng Network, achieved a revenue of 999 million yuan in H1 2024, with a net profit of 257 million yuan, and its "Doudizhu" game app reached over one million daily active users [4]. - The "Propagation Brain" content generation algorithm has been registered, and the company received an investment of 140 million yuan from the Zhejiang Provincial Industrial Fund to support business expansion [7]. Future Projections - The report forecasts the company's revenue to reach 3.085 billion yuan in 2024, with net profit expected to be 528 million yuan, and projects continued growth in subsequent years [8][10]. - The estimated P/E ratios for 2024, 2025, and 2026 are 27.20, 22.96, and 20.70 respectively, indicating a positive outlook for the company's valuation [8][10].