G-bits(SH:603444) KAIYUAN SECURITIES·2025-03-28 06:23Investment Rating - The investment rating for the company is "Buy" (maintained) [1] 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. However, Q4 2024 showed a sequential improvement in performance, with revenue of 877 million yuan, a slight year-on-year decrease of 0.08% but a quarter-on-quarter increase of 2.19% [5][6] - The decline in performance in 2024 was primarily due to reduced revenue from existing games and the new games being in the recovery phase. The company expects new product cycles to drive a recovery in performance [5][6] - The company plans to maintain its dividend at 10 yuan per share, resulting in a dividend yield of approximately 4.7% based on the closing price on March 27 [5] Financial Summary and Valuation Indicators - The company forecasts net profits for 2025, 2026, and 2027 to be 1.155 billion yuan, 1.309 billion yuan, and 1.433 billion yuan respectively, with corresponding EPS of 16.03 yuan, 18.17 yuan, and 19.89 yuan. The current stock price corresponds to P/E ratios of 13.7, 12.1, and 11.0 times for the respective years [5][8] - The company's revenue is expected to recover in 2025 with a projected increase of 14.8% year-on-year, followed by growth rates of 10.6% and 6.9% in 2026 and 2027 respectively [8][10] - The gross margin is projected to remain stable around 87.5% to 88.0% over the forecast period, while the net profit margin is expected to improve gradually from 25.6% in 2024 to 28.6% in 2027 [8][10] Game Performance and Growth Drivers - Key games such as "Wandao" and "Yinian Xiaoyao" have shown varying performance, with "Wandao" maintaining stable revenue while "Yinian Xiaoyao" experienced a significant decline. However, overseas revenue has seen substantial growth, reaching 500 million yuan in 2024, up 83.92% year-on-year [6][7] - The launch of new games like "Wanjian Changsheng" in January 2025 has already attracted over 1 million registered users, indicating potential for future revenue growth [7]