YAOJI TECHNOLOGY(002605) Guoxin Securities·2025-05-20 07:45Investment Rating - The investment rating for the company is "Outperform the Market" [5][19][20] Core Views - The company's main business performance is stable, with a significant improvement in Q1 2025 compared to the previous quarter. In 2024, the company achieved a revenue of 3.271 billion yuan and a net profit of 539 million yuan, representing year-on-year declines of 24.04% and 4.17%, respectively. The diluted EPS was 1.27 yuan. In Q1 2025, the company reported a revenue of 779 million yuan and a net profit of 141 million yuan, with year-on-year declines of 20.67% and 6.70%, but a quarter-on-quarter increase of 61.66% and 22.46% [1][8][19]. Summary by Sections Main Business Performance - The company’s revenue in 2024 was 3.271 billion yuan, with a net profit of 539 million yuan, showing a year-on-year decline of 24.04% and 4.17%, respectively. The diluted EPS was 1.27 yuan. The net profit remained stable despite significant revenue decline due to business adjustments, indicating strong operational resilience [1][8]. - In Q1 2025, the company achieved a revenue of 779 million yuan and a net profit of 141 million yuan, with year-on-year declines of 20.67% and 6.70%, but a quarter-on-quarter increase of 61.66% and 22.46% [1][8]. Business Segments - The gaming business in 2024 generated a revenue of 1.015 billion yuan, down 17.2% year-on-year, while the gross margin remained stable at 96.15%. The decline was attributed to a high base effect from the previous year and product cycle factors. The company operates in a relatively stable leisure gaming segment [2][14]. - The digital marketing business saw a significant revenue drop of 40.25% year-on-year, totaling 1.142 billion yuan, with a slight increase in gross margin to 7.76% [2][14]. - The poker business reported a revenue of 1.082 billion yuan, a slight decline of 0.75%, but maintained stability with a gross margin increase to 30.4%. The new production base for poker cards is expected to enhance revenue growth [2][14]. Emerging Business Opportunities - The company has strategically invested in card trading and collectibles, entering the sports culture and trading card market. It has established a leading position in the domestic market through its subsidiaries, DAKA and Card Hobby, which focus on card IP distribution and second-hand trading, respectively [3][18]. - New technologies such as AI are gradually being applied in gaming and internet marketing sectors, indicating potential for innovation and growth [3][18]. Financial Forecasts - The company’s net profit forecasts for 2025 and 2026 have been revised down to 614 million yuan and 665 million yuan, respectively, with a new forecast for 2027 at 699 million yuan. The diluted EPS is projected to be 1.48, 1.60, and 1.69 yuan for 2025, 2026, and 2027, respectively [19][22].