G-bits(SH:603444) Orient Securities·2025-08-26 14:42Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The new game "Zhang Jian Chuan Shuo" is expected to contribute significantly to revenue in Q3, leading to an upward revision of profit forecasts for 2025, 2026, and 2027 [3] - The company’s target price is set at 460.68 CNY based on a P/E ratio of 22 times the average of comparable companies for 2025 [3] Financial Performance Summary - The company reported a revenue of 1.38 billion CNY in Q2 2025, a year-on-year increase of 34%, primarily driven by new games [9] - The gross margin for Q2 was 93%, up 6 percentage points year-on-year, due to an increase in self-developed games [9] - The net profit attributable to the parent company for Q2 was 360 million CNY, reflecting a year-on-year growth of 37% [9] Profit Forecasts - The projected net profits for the company are 1.508 billion CNY, 1.779 billion CNY, and 1.936 billion CNY for 2025, 2026, and 2027 respectively, with significant growth rates of 59.6%, 17.9%, and 8.8% [3][11] - Earnings per share are expected to be 20.94 CNY, 24.70 CNY, and 26.87 CNY for 2025, 2026, and 2027 respectively [11] Market Position and Product Pipeline - The long-standing game "Wen Dao" has stabilized its revenue, and the new mini-game "Dao You Lai Wa Bao" is anticipated to enhance player engagement [9] - Upcoming new titles, including the SLG game "Jiu Mu Zhi Ye," are expected to have a long lifecycle if successful, with a focus on the competitive Three Kingdoms theme [9]