Orient Securities·2025-05-23 10:23Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The recovery of Blizzard games is expected to drive growth, with new mobile games like "Marvel Secret Wars" and "Destiny Stars" anticipated to launch [3] - The company's projected net profit for 2025-2027 is estimated at 36 billion, 38.1 billion, and 41.5 billion CNY respectively, reflecting an upward adjustment in gross margin and investment income [3] - The target price is set at 210.13 HKD / 193.03 CNY, indicating a potential upside from the current price [3] Financial Performance Summary - For 2023A, the company reported total revenue of 103,468 million CNY, with a year-on-year growth of 7.23% [4] - The operating profit for 2023A was 27,709 million CNY, showing a significant year-on-year increase of 41.17% [4] - The net profit attributable to the parent company for 2023A was 29,417 million CNY, reflecting a year-on-year growth of 44.64% [4] - The gross margin for 2023A was 60.95%, with a projected increase to 64.59% by 2027E [4] - The net profit margin for 2023A was 28.43%, expected to rise to 31.00% by 2027E [4] Revenue Breakdown - In Q1 2025, total revenue reached 28,829 million CNY, with a year-on-year increase of 7.4% [9] - The revenue from games and related value-added services in Q1 2025 was 24,048 million CNY, up 12.1% year-on-year [9] - Mobile game revenue in Q1 2025 was 15,359 million CNY, down 4.4% year-on-year, while PC game revenue surged by 85% to 8,088 million CNY [9] Future Projections - The company expects Q2 2025 mobile game revenue to face less year-on-year pressure, while PC game revenue is anticipated to remain strong [9] - The projected revenue for 2025E is 114,089 million CNY, with a year-on-year growth of 8.35% [10] - The estimated operating profit for 2025E is 36,475 million CNY, reflecting a growth rate of 23.29% [10]