Guangzhou Wahlap Technology (SZ:301011) KAIYUAN SECURITIES·2025-09-15 07:49Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [4]. Core Views - The company is a leading player in the commercial gaming and amusement equipment sector, with a robust business model that includes the sale of gaming equipment and anime IP derivatives. The company is expected to leverage the popularity of the "IP Guzi" to create a second growth curve [4][5]. - The forecasted net profits for the company from 2025 to 2027 are projected to be 112 million, 170 million, and 222 million yuan respectively, with corresponding EPS of 0.76, 1.16, and 1.51 yuan. The current stock price corresponds to PE ratios of 36.8, 24.1, and 18.5 times for the respective years [4]. Company Overview - The company has established itself as a leader in the domestic commercial gaming and amusement equipment market, with a complete industry chain that includes the development, production, sales, and operation of gaming equipment [14][15]. - The company has a concentrated shareholding structure, with the founder holding a significant portion of shares [16][18]. Financial Analysis - The company has shown a steady increase in revenue, with total revenue projected to grow from 816 million yuan in 2023 to 1.180 billion yuan in 2025, reflecting a year-on-year growth rate of 35.0% and 16.0% respectively [22]. - The gross profit margin is expected to improve from 28.5% in 2023 to 31.1% in 2025, indicating a positive trend in profitability [22]. Industry Insights - The IP card game industry is experiencing rapid growth, with the market size expected to reach 165 billion yuan in 2024 and 310 billion yuan by 2027, reflecting a CAGR of 20.5% from 2022 to 2027 [5][44]. - The gaming and amusement equipment market is stabilizing, with a revenue of 154.7 billion yuan in 2023, and the market is expected to see increased concentration as companies with strong sales channels gain market share [5][44]. Competitive Advantages - The company has a strong channel advantage, having built extensive downstream sales channels over the years, which enhances its market position [6][62]. - The company collaborates with numerous high-value IPs, including partnerships with major brands like Ultraman and Pokémon, which enriches its product matrix [6][64]. Growth Drivers - The company is expanding its IP derivative business through a combination of cooperation and self-research, with plans to launch new card arcade products and enhance its online and offline sales channels [6][4]. - The company is also exploring XR technology and international markets, which could further open up commercial opportunities [6][4].