Ultrapower(SZ:300002) AVIC Securities·2025-05-14 07:39Investment Rating - The investment rating for the company is "Buy," indicating an expected return exceeding 10% relative to the CSI 300 index over the next six months [2][13]. Core Views - The report highlights that the company's core business is improving, with accelerated growth in cloud and AI services. The company achieved a revenue of 6.452 billion yuan in 2024, representing an 8.22% year-on-year increase, and a net profit of 1.428 billion yuan, which is a significant 60.92% increase year-on-year [8][9]. - The company is expected to maintain strong growth momentum driven by new game launches and optimization of its software business profitability structure. Forecasted net profits for 2025, 2026, and 2027 are 1.360 billion yuan, 1.584 billion yuan, and 1.840 billion yuan, respectively [9][11]. Financial Performance Summary - In 2024, the company reported a gross margin of 61.04%, a slight decrease of 1.69 percentage points year-on-year, while the net profit margin improved by 7.24 percentage points to 22.00% [8][9]. - The company’s revenue for Q1 2025 was 1.323 billion yuan, a decrease of 11.07% year-on-year, with a net profit of 239 million yuan, down 19.09% year-on-year [9]. - The company’s total assets are projected to grow from 8.132 billion yuan in 2024 to 13.060 billion yuan by 2027, indicating a strong growth trajectory [12]. Business Segment Performance - The gaming segment generated a revenue of 4.662 billion yuan in 2024, reflecting a year-on-year increase of 3.66%. The AI and ICT services also showed robust growth, with revenues of 1.478 billion yuan and 1.500 billion yuan, respectively, marking increases of 20.53% and 27.05% [9][11]. - The company is focusing on enhancing its core gaming business while expanding into AI and cloud services, which are expected to drive future growth [9]. Future Outlook - The company is well-positioned for future growth due to its strong game pipeline and the integration of AI and cloud services into its business model. The expected earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 0.69 yuan, 0.81 yuan, and 0.94 yuan, respectively [9][11].