G-bits(SH:603444) HTSC·2025-10-15 07:30Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 565.66 [1]. Core Insights - The company expects to achieve a net profit attributable to shareholders of RMB 10.32 to 12.23 billion for the first three quarters of 2025, representing a year-on-year growth of 57% to 86% [1]. - The strong performance is driven by new game launches such as "杖剑传说" and "道友来挖宝," which are expected to contribute significantly to profits [2][3]. - The company plans to distribute a cash dividend of RMB 6.6 per share, totaling approximately RMB 470 million [1]. Summary by Sections Game Performance - "杖剑传说" launched on May 31, 2025, generated over RMB 4.24 billion in revenue within its first month, showing strong domestic performance and resilience in revenue decline [2]. - The game also performed well overseas, topping the iOS sales charts in regions like Hong Kong and Taiwan, with a 70% increase in overseas revenue in August [2]. New Growth Points - "道友来挖宝," launched in May, has maintained a top-five position in the mini-game sales rankings, indicating a high profit margin due to low marketing costs [3]. - The company has a robust pipeline of games, including "九牧之野," which is expected to support long-term growth [4]. Financial Projections - The company forecasts net profits of RMB 16.3 billion, RMB 18.2 billion, and RMB 19.3 billion for 2025 to 2027, with a PE ratio of 25X for 2025 [5]. - The projected revenue for 2025 is RMB 6.109 billion, reflecting a 65.3% increase from the previous year [11].