YAOJI TECHNOLOGY(002605) 华泰证券·2025-04-25 12:21Investment Rating - The report maintains a "Buy" rating for the company with a target price of 31.81 RMB [8][9]. Core Views - The company reported a revenue of 3.271 billion RMB in 2024, a year-on-year decline of 24.04%, and a net profit attributable to shareholders of 539 million RMB, down 4.17% year-on-year. The lower-than-expected profit is attributed to adjustments in the marketing business structure and fluctuations in game recharge revenue [1][5]. - The gaming business experienced a revenue drop of 17.2% to 1.015 billion RMB in 2024, primarily due to fluctuations in recharge revenue. However, the gross margin remained high at 96.15% [2]. - The poker business revenue was stable at 1.082 billion RMB, with a gross margin increase of 3.84 percentage points to 30.40%, driven by improved production efficiency [3]. - The overall gross margin improved by 5.81 percentage points to 43.44% in 2024, influenced by the poker and marketing business [4]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 3.271 billion RMB, down 24.04% year-on-year, and a net profit of 539 million RMB, down 4.17% year-on-year. The expected net profit for 2025 is revised down to 600 million RMB [1][5]. - The gaming business revenue decreased to 1.015 billion RMB, with a gross margin of 96.15% [2]. - The poker business generated 1.082 billion RMB in revenue, with a gross margin of 30.40% [3]. Cost and Efficiency - The overall gross margin increased to 43.44% due to improvements in the poker and marketing sectors [4]. - The company’s expenses in Q4 were impacted by a one-time bonus provision, which is expected to normalize in the future [4]. Valuation and Forecast - The company’s net profit estimates for 2025 and 2026 have been adjusted to 600 million RMB and 670 million RMB, respectively, with a target price set at 31.81 RMB based on a 22x PE ratio [5].