G-bits(SH:603444) GUOTAI HAITONG SECURITIES·2025-11-03 09:23Investment Rating - The investment rating for the company is "Accumulate" with a target price of 602.00 CNY, while the current price is 472.98 CNY [6][19]. Core Insights - The company's products such as "Zhang Jian Chuan Shuo" and "Dao You Lai Wa Bao" have shown outstanding performance and sustainability, expected to continue contributing to revenue in 2026. The expansion of "Zhang Jian" and "Wen Jian" in overseas markets, along with the launch of "Jiu Mu Zhi Ye," will further drive growth [2][11]. - The third quarter results are at the upper end of forecasts, with a cash dividend of 6 CNY per share announced. For the first three quarters of 2025, the net profit attributable to the parent company reached 1.214 billion CNY, a year-on-year increase of 84.66%, with a single-quarter net profit of 569 million CNY, up 307.7% [11][12]. Financial Summary - Total revenue is projected to increase from 4,185 million CNY in 2023 to 9,257 million CNY in 2027, reflecting a compound annual growth rate (CAGR) of approximately 29.5% [4][12]. - Net profit attributable to the parent company is expected to rise from 1,125 million CNY in 2023 to 2,476 million CNY in 2027, indicating a CAGR of about 30.5% [4][12]. - Earnings per share (EPS) are forecasted to grow from 15.62 CNY in 2023 to 34.36 CNY in 2027 [4][12]. Product Performance - "Zhang Jian Chuan Shuo" generated a total revenue of 1.166 billion CNY in the mainland market for the first three quarters, maintaining a position within the top 40 of the iOS game sales chart. "Dao You Lai Wa Bao," launched in May, has contributed 316 million CNY by the end of September [11][12]. - The overseas revenue for the first nine months reached 588 million CNY, a year-on-year increase of 59.46%, with "Zhang Jian Chuan Shuo (Overseas Version)" contributing 478 million CNY since its launch on July 15, 2025 [11][12]. Future Expectations - Anticipation for the launch of "Wen Jian Chang Sheng" and "Zhang Jian Chuan Shuo" in overseas markets, as well as the strategic reserve of the SLG mobile game "Jiu Mu Zhi Ye," which is expected to contribute to 2026's performance [11][12].