Ultrapower(SZ:300002) Xinda Securities·2024-02-21 16:00Investment Rating - The report assigns a "Buy" rating for the company, indicating that the stock price is expected to outperform the benchmark by over 20% [5]. Core Views - The company reported a significant increase in revenue and profit for 2023, with total revenue reaching 5.965 billion yuan, a year-on-year growth of 24.11%. Operating profit was 1.053 billion yuan, up 69.09%, and net profit attributable to shareholders was 893 million yuan, reflecting a 64.82% increase [1][2]. - The gaming business is a major revenue driver, with nearly 90% of income coming from overseas markets. The company has a strong pipeline of products, including two new games expected to support future growth [1][2]. - The computer business is also innovating, with advancements in ICT operations, cloud services, and artificial intelligence applications. The company aims to establish itself as a leader in the digital economy with continuous innovation [1][2]. Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 5.965 billion yuan, operating profit of 1.053 billion yuan, and net profit of 893 million yuan, with respective year-on-year growth rates of 24.11%, 69.09%, and 64.82% [1]. - For Q4 2023, total revenue was 1.914 billion yuan, with a year-on-year growth of 21.84%, and net profit reached 330 million yuan, up 108.34% [1]. Business Segments - The gaming segment has shown strong performance, with significant revenue contributions from titles like "Age of Origins" and "War and Order." The company is increasing investment in these products to enhance revenue streams [1][2]. - The computer business is experiencing steady growth, with innovations in various fields including AI, which is being commercialized through products like "Taiyue Xiaocui" [1][2]. Future Outlook - The company is expected to launch two new games in 2024, which are anticipated to drive further revenue growth. The overall revenue projections for 2024 and 2025 are 6.828 billion yuan and 7.860 billion yuan, respectively [1][2].