SW-TECH(300113) KAIYUAN SECURITIES·2025-04-18 09:11Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The recovery of the PC gaming and esports sectors is driving a rebound in performance, with growth driven by cloud computing and AI [1][3] - The company achieved a revenue of 1.84 billion yuan in 2024, representing a year-on-year increase of 28.37%, and a net profit of 252 million yuan, up 48.6% year-on-year [3][4] - The main growth driver is the revenue from online advertising and value-added services, which reached 1.34 billion yuan, a year-on-year increase of 46.56% [3][4] - The company is expected to see continued growth in net profit, with projections of 330 million yuan for 2025, 407 million yuan for 2026, and 490 million yuan for 2027 [3][4] Financial Performance Summary - In 2024, the company's gross margin was 41.13%, a decrease of 8.07 percentage points year-on-year, primarily due to costs in online advertising and value-added services growing faster than revenue [4] - The company effectively controlled expenses, resulting in a net profit margin increase to 13.69%, up 1.86 percentage points year-on-year [4] - The edge computing business is accelerating, with over 300 edge data centers established by the end of 2024, serving over 700,000 cloud terminals, a year-on-year increase of 21.1% [4] - The company’s earnings per share (EPS) are projected to be 0.48 yuan for 2025, 0.60 yuan for 2026, and 0.72 yuan for 2027, with corresponding price-to-earnings (P/E) ratios of 36.2, 29.3, and 24.3 respectively [3][4]