YAOJI TECHNOLOGY(002605) 华泰证券·2025-04-25 11:05Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 31.81 [8][9]. Core Views - The company reported a revenue of RMB 3.271 billion for 2024, a decrease of 24.04% year-over-year, and a net profit attributable to the parent company of RMB 539 million, down 4.17% year-over-year. The decline was primarily due to adjustments in the marketing business structure and fluctuations in game recharge revenue [1][5]. - The gaming business generated revenue of RMB 1.015 billion in 2024, down 17.2% year-over-year, attributed to fluctuations in recharge revenue. However, the gross margin remained high at 96.15% [2]. - The poker business revenue was stable at RMB 1.082 billion, with a gross margin increase to 30.40%, up 3.84 percentage points year-over-year, driven by improved production efficiency [3]. - The overall gross margin improved by 5.81 percentage points to 43.44%, influenced by the poker and marketing business [4]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of RMB 3.271 billion, a decline of 24.04% compared to the previous year. The net profit attributable to the parent company was RMB 539 million, down 4.17% year-over-year [1][7]. - The gaming segment's revenue was RMB 1.015 billion, reflecting a 17.2% decrease year-over-year, while the poker segment generated RMB 1.082 billion, a slight decline of 0.75% [2][3]. Profitability Metrics - The gross margin for the company increased to 43.44%, up 5.81 percentage points, due to improvements in the poker and marketing segments [4]. - The company plans to distribute a cash dividend of RMB 5 per ten shares, totaling RMB 207 million, with a payout ratio of 38.48% [1]. Future Outlook - The company has adjusted its net profit forecasts for 2025 and 2026 to RMB 600 million and RMB 670 million, respectively, primarily due to lower-than-expected game recharge revenue [5]. - The report anticipates that with refined operations, the gaming business may stabilize in the future [2].