E-Soul(SH:603258) Huachuang Securities·2025-05-25 03:45Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [6][16]. Core Insights - The company's short-term performance is under pressure, with a focus on the upcoming launch of new games such as "Xiu Xian Shi Dai" [1][7]. - The company reported a revenue of 138 million yuan in Q4 2024, a year-over-year decline of 19.8%, and a revenue of 102 million yuan in Q1 2025, down 25.6% year-over-year [1][3]. - The overall revenue for 2024 is projected at 550 million yuan, reflecting a 19% year-over-year decrease, with a net profit of 30.58 million yuan [1][3]. Financial Performance Summary - The company’s total revenue is expected to grow significantly in the coming years, with projections of 1.025 billion yuan in 2025, 1.278 billion yuan in 2026, and 1.433 billion yuan in 2027, representing year-over-year growth rates of 86.1%, 24.8%, and 12.1% respectively [3][8]. - The net profit is forecasted to rebound sharply, with estimates of 311 million yuan in 2025, 401 million yuan in 2026, and 454 million yuan in 2027, showing year-over-year growth rates of 918.6%, 28.7%, and 13.3% respectively [3][8]. - The earnings per share (EPS) is projected to increase from 0.13 yuan in 2024 to 1.86 yuan in 2027 [3][8]. Product and Market Insights - The company’s core products, including "Meng San Guo 2" and "Meng Ta Fang," have stable operations, with "Meng San Guo 2" having over 100 million registered users and being included in the Hangzhou Asian Games [7][8]. - The company has a rich pipeline of new products, including "Luo Xuan Yong Shi" and "Jiang Hu Ru Meng," which are expected to contribute to revenue growth [7][8]. - The upcoming game "Xiu Xian Shi Dai," which will be published by Tencent, is anticipated to provide significant revenue and profit elasticity [7][8].