G-bits(SH:603444) Zhongyuan Securities·2025-08-20 10:55Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected increase of over 15% relative to the CSI 300 index in the next six months [11][14]. Core Insights - The company's revenue for H1 2025 reached 2.518 billion yuan, a year-on-year increase of 28.49%, while net profit attributable to shareholders was 645 million yuan, up 24.50% year-on-year [6]. - The launch of new games, particularly "Wanjian Changsheng" and "Zhangjian Chuanqi," has significantly contributed to revenue growth, with "Wanjian Changsheng" achieving a total revenue of 3.63 billion yuan in Q1 2025 and 2.03 billion yuan in Q2 2025 [6]. - The company has seen a notable increase in gross margin, which reached 92.31% in H1 2025, up 4.10 percentage points year-on-year, driven by reduced costs and successful new product launches [8][11]. Summary by Sections Financial Performance - For Q2 2025, the company reported revenue of 1.382 billion yuan, a 33.89% increase year-on-year, and a net profit of 361 million yuan, reflecting a 36.64% year-on-year growth [6]. - The company plans to distribute a cash dividend of 66.00 yuan per 10 shares, which accounts for 73.46% of the net profit attributable to shareholders for H1 2025 [11]. Product Development - The successful launch of "Wanjian Changsheng" and "Zhangjian Chuanqi" has driven significant revenue, with the former ranking as high as 14th in the App Store's best-seller list [6]. - The company is also expanding its global distribution, with "Zhangjian Chuanqi" performing well in markets such as Hong Kong, Macau, and Japan [8]. Cost Management - The report highlights a decrease in research and development expenses as a percentage of revenue, which has helped offset the increase in sales expenses due to new game launches [8][9]. - The gross margin improvement is attributed to a reduction in costs associated with external developers, leading to a decrease in operating costs by 16.21% year-on-year [8].