SANQI HUYU(SZ:002555) Changjiang Securities·2025-04-25 15:22Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a revenue of 17.44 billion yuan for 2024, representing a year-on-year increase of 5.4%. The net profit attributable to the parent company was 2.67 billion yuan, up 0.5% year-on-year, while the net profit excluding non-recurring items was 2.59 billion yuan, an increase of 3.8% year-on-year [2][5]. - The company plans to distribute dividends with a payout ratio of 82.3%, corresponding to a dividend yield of approximately 6.3% based on the closing price of 4.22 yuan [2][5]. - Several new games, including "Time Explosion" and "Heroes Don't Flash," have shown strong performance in early 2025, with a rich pipeline of upcoming products [2][5]. Summary by Sections Financial Performance - In Q4 2024, the company achieved a revenue of 4.1 billion yuan, which is a decrease of 8.9% year-on-year and a slight decrease of 0.1% quarter-on-quarter. The net profit for the same quarter was 780 million yuan, reflecting a significant year-on-year increase of 66.3% and a quarter-on-quarter increase of 22.6% [2][5]. - The company’s sales expenses in Q4 2024 decreased by 26.4% year-on-year and 14.3% quarter-on-quarter to 2.01 billion yuan, resulting in a sales expense ratio of 49.0% [2][5]. Product Development and Market Position - The company has upgraded its AI capabilities, enhancing various business applications. The self-developed game industry model "Xiao Qi" has significantly improved the quality and efficiency of game production [2][5]. - The company has a diverse pipeline of new games across various genres, including MMORPG, SLG, and card games, which are expected to contribute to revenue growth [2][5]. Future Outlook - The company forecasts net profits of 2.84 billion yuan and 3.09 billion yuan for 2025 and 2026, respectively, with corresponding price-to-earnings ratios of 12.5 and 11.5 times [2][5].