PWRD(SZ:002624) Orient Securities·2025-09-04 03:30Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 16.20 CNY based on a 20x PE for 2026 [5][3]. Core Views - The company's core game "Yihuan" is expected to launch in 2026, contributing significantly to revenue growth. The forecasted net profit for the company is 0.827 billion, 1.564 billion, and 1.806 billion CNY for 2025, 2026, and 2027 respectively, reflecting a recovery in profitability [3][10]. - The company has seen a strong performance in its existing games, particularly "Zhu Xian World," which has driven revenue growth in the first half of 2025 [10]. Financial Summary - The company's revenue for 2023 is projected at 7.791 billion CNY, with a year-on-year growth of 1.6%. However, a decline of 28.5% is expected in 2024, followed by a recovery with growth rates of 29.1% and 48.6% in 2025 and 2026 respectively [4][12]. - The gross profit margin is expected to stabilize around 58.2% in 2025 and increase to 63.9% in 2026, indicating improved profitability as new games are launched [4][12]. - The net profit margin is projected to recover from -23.1% in 2024 to 14.6% in 2026, reflecting a significant turnaround in the company's financial health [4][12].