G-bits(SH:603444) GOLDEN SUN SECURITIES·2025-03-29 14:23Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company reported a significant improvement in Q4 performance, with a quarter-on-quarter revenue increase of 2.19% and a net profit increase of 105.78% [1] - The overseas business is experiencing rapid growth, with a revenue increase of 83.92% year-on-year [3] - The company has a rich pipeline of self-developed and third-party products, which is expected to drive future growth [4] Financial Overview - In 2024, the company achieved a total revenue of 3.696 billion, a year-on-year decline of 11.69%, and a net profit of 945 million, down 16.02% [1] - The company forecasts revenues of 3.918 billion, 4.349 billion, and 4.660 billion for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 6.0%, 11.0%, and 7.2% [4] - The projected net profit for 2025 is 1.002 billion, reflecting a year-on-year growth of 6.0% [4] Product Performance - The mobile game "Wandao" saw a revenue decline of 11.39% to 2.073 billion in 2024, while the PC version experienced a slight revenue increase of 3.93% to 1.119 billion [2] - The overseas game "Wandao (US version)" has shown a year-on-year increase in both revenue and profit [3] - New games launched in 2024 include "Immortal Family" and "Zhou Qian Shi Fang," with the latter achieving slight profitability by the end of the year [2][3] Future Outlook - The company is expected to continue its overseas expansion with a strong product pipeline, including titles like "Zhang Jian Chuan Shuo" and "Jiu Mu Zhi Ye," which have already obtained licenses for release in 2025 [3][4] - The earnings per share (EPS) is projected to be 13.91, 16.22, and 17.49 for 2025, 2026, and 2027 respectively [5]