ZDDC(SH:600633) Huachuang Securities·2025-03-30 13:33Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [19]. Core Insights - The company reported a revenue of 3.097 billion yuan for 2024, a year-on-year increase of 0.6%. The net profit attributable to the parent company was 512 million yuan, down 22.8% year-on-year, while the net profit excluding non-recurring items was 405 million yuan, up 12.8% year-on-year. The decline in net profit is attributed to high base effects from the previous year's investment gains [1][2]. - The company has a strong focus on shareholder returns, with a planned total dividend of 317 million yuan for the year, representing 62% of the net profit attributable to the parent company, marking a new high in the past decade [7][8]. - The future strategy aims to establish the company as a leading digital cultural industry group in China, focusing on three development directions: digital culture, digital technology, and data operations [8]. Business Segments Summary 1. Online Gaming Operations: - Revenue reached 1.34 billion yuan in 2024, with a year-on-year growth of 1.8% and a gross margin of 91%. The company is focusing on premium operations, maintaining a leading position in card games [2]. 2. Online Social Business: - Revenue fell to 268 million yuan, a decrease of 65.2% year-on-year, with a gross margin of 42.7%. The decline is due to a strategic contraction in this segment [2]. 3. Technical Information Services: - Revenue was 685 million yuan, up 6.9% year-on-year, with a gross margin of 45.7%. The segment includes various initiatives such as data center operations and AI model development [2]. 4. Digital Marketing: - Revenue surged to 775 million yuan, a year-on-year increase of 130.2%, with a gross margin of 18.8%. This segment is in a rapid growth phase, leveraging AI for marketing solutions [2]. Financial Projections - The company expects to achieve a net profit of 679 million yuan in 2025, representing a growth of 32.8% year-on-year, with projected revenues of 3.34 billion yuan, a growth of 7.8% [9][10]. - The projected price-to-earnings ratio for 2025 is 25 times, with a target price set at 17.68 yuan, based on a valuation of 33 times PE [3][8].