PWRD(SZ:002624) EBSCN·2024-11-17 02:16Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The key new game products "Zhu Xian World" and "Yihuan" are progressing steadily, with expectations for their performance upon launch [2] - The company is experiencing short-term pressure on earnings but is expected to benefit from the upcoming key product launches [2] - The company has adjusted its profit forecasts for 2024 and 2025 due to the underperformance of existing products and the uncertainty surrounding new game launches [2] Summary by Sections New Game Products - "Zhu Xian World," a new MMORPG, completed its testing on October 31 and is scheduled for public testing on December 19, targeting core MMO players with positive testing feedback [2] - "Yihuan," an open-world RPG mobile game, received high anticipation with over 930,000 and 1.51 million pre-registrations on Bilibili and TapTap respectively, and a high rating of 9.5 and 9.2 [2] Financial Performance - For the first three quarters of 2024, the company reported revenue of 4.07 billion yuan, down 34.3% year-on-year, and a net loss attributable to shareholders of 390 million yuan, down 163.3% year-on-year [2] - The third quarter of 2024 saw revenue of 1.31 billion yuan, a decrease of 24.4% year-on-year, with a net loss of 210 million yuan, down 190.3% year-on-year [2] Profit Forecasts and Valuation - The company has revised its net profit forecasts for 2024 and 2025 to -560 million yuan and 860 million yuan respectively, with a new forecast for 2026 at 1.1 billion yuan [2] - The current price corresponds to a PE ratio of NA/26/21 times for the respective years [2]