G-bits(SH:603444) HTSC·2025-03-28 06:40Investment Rating - The report maintains a "Buy" rating for the company [8] Core Views - The company achieved a revenue of 3.696 billion RMB in 2024, a year-on-year decrease of 11.69%, with a net profit attributable to shareholders of 944.92 million RMB, down 16.02% year-on-year [1] - The fourth quarter saw a slight revenue increase to 877 million RMB, with a year-on-year growth of 0.08% and a quarter-on-quarter growth of 2.19% [1] - The company announced a cash dividend of 35 RMB per 10 shares, with an expected total cash dividend of 718 million RMB for 2024, representing 76% of the net profit for the year [1] Revenue and Profitability - The company’s revenue from the game "Wandao" reached 1.119 billion RMB in 2024, an increase of 3.93% year-on-year, while "Wandao Mobile" revenue was 2.073 billion RMB, down 11.4% year-on-year [2] - The overseas revenue increased by 83.92% to 500 million RMB due to the launch of new products [2] - The gross margin for 2024 slightly decreased by 0.67 percentage points to 87.86%, remaining stable overall [4] Expense Management - The report indicates a decrease in the issuance expense ratio in Q4, contributing to improved profitability [4] - The R&D expense ratio increased due to a rise in personnel, reflecting the company's commitment to enhancing product development [4] Future Outlook - The company is expected to launch new products, including "Wanjian Changsheng," which has already shown promising rankings in the App Store [3] - The revenue forecast for 2025 is set at 4.509 billion RMB, with a projected net profit of 1.176 billion RMB, indicating a recovery trend [5] - The target price for the company is set at 294.84 RMB, based on an 18X PE ratio for 2025 [5]