Ultrapower(300002) 华源证券·2025-01-21 07:29Investment Rating - The report assigns an "Accumulate" rating for the company, indicating a positive outlook for investment [4][7]. Core Insights - The company is positioned as a multi-faceted player in the industry, with gaming as its core business, supported by ICT, IoT, and AI developments. The gaming segment is expected to drive significant revenue growth, particularly with the launch of new games [6][9]. - The company has a strong competitive advantage due to its extensive experience in the SLG gaming sector, which has led to the sustained success of its flagship games, "War and Order" and "Age of Z Origins" [6][9]. - The report highlights the potential of new games, "Leap of Ages" and "Starlit Eden," which are expected to attract a broader audience and contribute to revenue growth [9][134]. Summary by Sections Company Overview - The company has evolved from an ICT giant to a diversified player in multiple sectors, including gaming, IoT, and AI, since its establishment in 2001 [20][22]. - The gaming business has become the core revenue driver, with mobile games accounting for over 79% of total revenue as of H1 2024 [22][33]. Financial Analysis - The company has shown consistent revenue growth, with a projected increase in operating income from 5,962 million RMB in 2023 to 8,617 million RMB by 2026, reflecting a compound annual growth rate (CAGR) of approximately 12.93% [5][34]. - The net profit attributable to shareholders is expected to grow from 887 million RMB in 2023 to 1,662 million RMB in 2026, with a significant growth rate of 63.72% in 2023 [5][34]. Gaming Business - The gaming segment is characterized by a strong performance of existing titles and the anticipated success of new releases. The company has successfully launched games that have maintained long-term popularity and revenue stability [9][94]. - The report emphasizes the strategic importance of international markets for growth, as domestic competition intensifies [76][79]. AI and ICT Business - The company has been actively developing its AI capabilities, particularly in NLP, which has shown promising commercial applications in debt collection and telemarketing [68][75]. - The ICT business remains robust, with a focus on providing comprehensive IT solutions across various sectors, including telecommunications and finance [40][44]. Profitability and Valuation - The report projects a stable gross margin of over 60% and a return on equity (ROE) that is expected to reach 19.41% by 2024 [34][134]. - The current price-to-earnings (P/E) ratio is projected to decrease from 25.51 in 2024 to 13.62 in 2026, indicating an attractive valuation relative to expected earnings growth [5][134].