G-bits(SH:603444) Huachuang Securities·2025-03-31 04:14Investment 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 [17]. Core Insights - The company reported better-than-expected performance in Q4 2024, achieving revenue of 880 million yuan, flat year-over-year (YOY), and a quarter-over-quarter (QOQ) increase of 2%. The net profit attributable to shareholders was 290 million yuan, up 8% YOY and up 106% QOQ [1]. - For the full year 2024, the company generated total revenue of 3.7 billion yuan, a decrease of 12% YOY, and a net profit of 940 million yuan, down 16% YOY. The adjusted net profit was 880 million yuan, down 22% YOY [1]. - The company is expected to benefit from new product launches in 2025, with three new games anticipated to contribute to revenue growth [7]. Financial Performance Summary - In Q4 2024, the company achieved a revenue of 880 million yuan, with a net profit of 290 million yuan, and an adjusted net profit of 260 million yuan [1]. - The financial forecast for 2025 estimates total revenue of 4.1 billion yuan, representing an 11.6% increase YOY, and a net profit of 1.0 billion yuan, reflecting a 7.3% increase YOY [3]. - The company plans to distribute a cash dividend of 720 million yuan for the year, corresponding to a dividend payout ratio of 76% [7]. Product and Market Insights - The company's core products are showing signs of stabilization, with the "Wandao" PC game generating 1.12 billion yuan in revenue for 2024, a 4% increase YOY. The mobile version generated 2.07 billion yuan, down 11% YOY, but the decline is narrowing [7]. - The newly launched game "Wanjian Changsheng" is currently fluctuating around the 60th position in sales rankings, and is expected to provide a smoother revenue curve compared to previous titles [7]. - The company has a low valuation level with a current market capitalization of 15.9 billion yuan, corresponding to a price-to-earnings (P/E) ratio of 15.6 for 2025 [3][7].