YAOJI TECHNOLOGY(SZ:002605) GUOTAI HAITONG SECURITIES·2025-11-03 12:00Investment Rating - The investment rating for the company is "Accumulate" with a target price of 36.25 CNY, while the current price is 25.94 CNY [5]. Core Insights - The company experienced a decline in revenue and profit year-on-year in Q3 2025, but structural optimization of revenue has led to improved profitability. The long-term outlook remains positive, particularly regarding the development of new business areas such as the short video center [2][11]. Financial Summary - Total revenue for 2023 is projected at 4,307 million CNY, with a year-on-year growth of 10.0%. However, a significant decline of 24.0% is expected in 2024, followed by a recovery with growth rates of 6.2%, 4.5%, and 4.1% in the subsequent years [4]. - Net profit attributable to the parent company for 2023 is estimated at 562 million CNY, with a substantial increase of 61.4% compared to the previous year. A slight decrease of 4.2% is anticipated in 2024, followed by growth in the following years [4]. - The earnings per share (EPS) for 2025 is projected to be 1.45 CNY, with subsequent increases to 1.54 CNY in 2026 and 1.62 CNY in 2027 [4][12]. Business Development - The gaming business is developing steadily, with core products expected to maintain a long lifecycle. The company is focusing on upgrading existing mobile games and developing a matrix of high-quality mobile games to enhance product efficiency [11]. - The establishment of the Shanghai International Short Video Center aims to create a full industry chain ecosystem around short videos and short dramas. This includes a fund to support high-potential creators and projects, promoting content innovation and commercialization [11].