G-bits(SH:603444) KAIYUAN SECURITIES·2025-03-28 05:50Investment Rating - The investment rating for the company is "Buy" (maintained) [1][5] Core Views - The company achieved a revenue of 3.696 billion yuan in 2024, a year-on-year decrease of 11.69%, and a net profit attributable to shareholders of 945 million yuan, down 16.02% year-on-year. The fourth quarter of 2024 showed a slight improvement with a revenue of 877 million yuan, a year-on-year decrease of 0.08% but a quarter-on-quarter increase of 2.19% [5][6] - The decline in performance is attributed to reduced revenues from existing games and the new games being in the recovery phase. However, the fourth quarter of 2024 saw a significant quarter-on-quarter profit increase of 105.78% [5][6] - The company plans to launch several new games, which are expected to offset the decline in revenue from older titles and drive growth [7] Financial Summary and Valuation Metrics - The company forecasts net profits of 1.155 billion yuan, 1.309 billion yuan, and 1.433 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 16.03 yuan, 18.17 yuan, and 19.89 yuan [5][10] - The current price-to-earnings (P/E) ratios are projected to be 13.7, 12.1, and 11.0 for 2025, 2026, and 2027 respectively, indicating a favorable valuation outlook [5][10] - The company’s overseas revenue reached 500 million yuan in 2024, reflecting a year-on-year growth of 83.92%, contributing positively to overall performance [6][10]