G-bits(SH:603444) Changjiang Securities·2025-11-01 23:45Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Insights - The company reported Q3 2025 revenue of 1.97 billion yuan, a year-on-year increase of 129.2%, and a net profit attributable to shareholders of 570 million yuan, up 307.7% year-on-year, closely aligning with the upper limit of the forecast range [2][4]. - The new game "Staff Sword Legend" performed steadily, and the overseas game market showed significant contributions [5][10]. - The company is focusing on the subsequent revenue trends of core products and the testing and launch schedule of new products [10]. Summary by Sections Financial Performance - In Q3 2025, the company achieved revenue of 1.97 billion yuan, with a net profit of 570 million yuan and a non-recurring net profit of 560 million yuan, reflecting year-on-year increases of 129.2%, 307.7%, and 273.7% respectively [2][4]. - The new game "Staff Sword Legend" generated a revenue of 742 million yuan in Q3, while its overseas version contributed 478 million yuan [10]. Game Performance - The new game "Staff Sword Legend" continues to contribute incremental revenue, with its overseas version performing well, leading to a significant increase in overseas revenue to 387 million yuan in Q3 [10]. - The self-developed mini-program game "Dao You Lai Wa Bao" has contributed over 300 million yuan in revenue since its launch in May [10]. Cost and Expenses - Due to the contribution from multiple new games, the company’s unamortized recharge and item balance as of September 30, 2025, increased significantly to 635 million yuan from 567 million yuan [10]. - The sales expenses increased due to the launch of new games, with a total of 610 million yuan in Q3, reflecting a year-on-year increase of 360 million yuan [10]. Shareholder Returns - The company has actively promoted shareholder returns, with a proposed cash dividend of 4.31 billion yuan, accounting for approximately 75.6% of net profit [10]. Profit Forecast - The company expects net profits attributable to shareholders to be 1.69 billion yuan and 1.90 billion yuan for 2025 and 2026, respectively, corresponding to PE ratios of 20.6 and 18.3 times [10].