G-bits(SH:603444) Guoxin Securities·2025-11-02 09:44Investment Rating - The investment rating for the company is "Outperform the Market" [5][3][18] Core Views - The company's revenue in Q3 2025 increased by 129% year-on-year, driven by new product launches, with total revenue for the first three quarters reaching 4.49 billion yuan, a 59.1% increase year-on-year [1][7] - The net profit for the first three quarters of 2025 was 1.21 billion yuan, up 84.6% year-on-year, with Q3 net profit showing a remarkable growth of 307.7% [1][3] - The gross margin improved by 5.6 percentage points to 94.6% in Q3 2025, attributed to the successful launch of new games [1][9] Summary by Sections Financial Performance - For Q3 2025, the company's operating revenue was 1.97 billion yuan, reflecting a 129.2% year-on-year increase, while the net profit was 570 million yuan, marking a 307.7% increase [1][7] - The gross margin for Q3 2025 was 94.6%, up 5.6 percentage points year-on-year, with overall expense ratio decreasing by 12.5 percentage points to 50.5% [1][9] Product Performance - New games such as "Zhang Jian Chuan Shuo" and "Dao You Lai Wa Bao" contributed significantly to revenue and profit, while older games like "Wen Dao" saw a decline in revenue [2][11] - The overseas game revenue for the first three quarters grew by 59.5% to 590 million yuan, primarily due to contributions from "Zhang Jian Chuan Shuo (Overseas Version)" [2][11] Future Outlook - The company expects continued growth from its self-developed products and plans to expand the global distribution of "Zhang Jian Chuan Shuo" and "Wen Jian Chang Sheng" [2][13] - The profit forecast for 2025-2027 has been revised upwards, with expected net profits of 1.8 billion, 1.92 billion, and 2.12 billion yuan respectively [3][17]