CAITONG SECURITIES·2025-11-22 13:06Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company has shown a revenue growth of 8.2% year-on-year, reaching 28.36 billion yuan, which is slightly below Bloomberg's expectations by 3% [7] - The adjusted net profit margin reached 33.5%, exceeding Bloomberg's expectations by 0.8% [7] - The company is expected to see adjusted net profit growth of 18.4%, 8.8%, and 8.6% for the years 2025 to 2027, with corresponding PE ratios of 14.9, 13.7, and 12.6 [7] Financial Performance - Revenue projections for the company are as follows: - 2023A: 103.468 billion yuan - 2024A: 105.295 billion yuan - 2025E: 115.426 billion yuan - 2026E: 125.700 billion yuan - 2027E: 134.863 billion yuan - The net profit for the years is projected as: - 2023A: 29.417 billion yuan - 2024A: 29.698 billion yuan - 2025E: 36.339 billion yuan - 2026E: 39.555 billion yuan - 2027E: 43.252 billion yuan [6][7] Business Segments - The self-developed games segment generated revenue of 23.33 billion yuan, reflecting a year-on-year growth of 11.8% [7] - The cloud music segment reported revenue of 1.96 billion yuan, a decrease of 1.8% year-on-year [7] - The Youdao segment achieved revenue of 1.63 billion yuan, with a year-on-year increase of 3.6% [7] Valuation Metrics - The company’s EPS for the upcoming years is projected as follows: - 2023A: 9.05 yuan - 2024A: 9.28 yuan - 2025E: 11.47 yuan - 2026E: 12.49 yuan - 2027E: 13.65 yuan - The P/E ratios are projected to be: - 2023A: 15.54 - 2024A: 14.91 - 2025E: 18.53 - 2026E: 17.03 - 2027E: 15.57 [6][8]