G-bits(SH:603444) GUOTAI HAITONG SECURITIES·2025-08-20 07:23Investment Rating - The investment rating for the company is "Accumulate" [5] Core Views - The new product "Legend of the Staff" generated a revenue of 420 million in Q2, maintaining a stable domestic ranking and beginning to contribute revenue from overseas markets, indicating potential for continued performance and long-term stability [2][11] - The company expects a recovery in performance driven by the success of "Legend of the Staff" and upcoming titles like "Nine Muses of the Wild" [11] Financial Summary - Total revenue for 2023 is projected at 4,185 million, with a decrease of 19.0% from the previous year, followed by a forecasted increase of 55.1% to 5,731 million in 2025 [4] - Net profit attributable to the parent company is expected to be 1,125 million in 2023, decreasing by 23.0%, but increasing by 57.7% to 1,490 million in 2025 [4] - Earnings per share (EPS) is projected to rise from 15.62 in 2023 to 20.68 in 2025 [4] Market Data - The target price for the company's stock is set at 517.00 yuan, with a current market price-to-earnings (P/E) ratio of 24.52 for 2023, expected to decrease to 18.51 in 2025 [5][4] - The company's market capitalization is approximately 27,585 million [6] Performance Metrics - The company reported a revenue of 2,518 million in the first half of 2025, a year-on-year increase of 28.49%, with a net profit of 645 million, up 24.5% [11] - The gross profit margin is expected to improve from 88.5% in 2023 to 89.8% in 2025 [12] Product Performance - "Legend of the Staff" has shown strong performance since its launch, ranking around 20th in the iOS bestseller list in June and maintaining a position around 30th in July and August [11] - The overseas launch on July 15 has contributed significantly, with expectations of over 100 million in additional revenue from international markets [11]