Ultrapower(SZ:300002) Tianfeng Securities·2024-02-22 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price indicating an expected return of over 20% within the next six months [4][12]. Core Insights - The company reported a revenue of approximately 5.96 billion yuan for 2023, representing a year-on-year growth of 24%, and a net profit attributable to shareholders of about 890 million yuan, up 65% year-on-year [1]. - The fourth quarter of 2023 is expected to see accelerated profit growth, with revenue projected at around 1.91 billion yuan, a 22% increase year-on-year and a 37% increase quarter-on-quarter [1]. - The company is entering a new product cycle, with plans to launch two new games in overseas markets in 2024, which are expected to enhance revenue and profitability [2][1]. Financial Performance Summary - Revenue (in million yuan): 2021: 4,314.27, 2022: 4,806.01, 2023E: 5,964.93, 2024E: 7,221.28, 2025E: 8,385.39 [3][8]. - Net profit attributable to shareholders (in million yuan): 2021: 384.52, 2022: 541.89, 2023E: 893.18, 2024E: 1,030.25, 2025E: 1,259.41 [3][8]. - The company’s EBITDA for 2023 is estimated at 1,154.41 million yuan, with a projected growth rate of 24.11% [3][8]. Market Position and Strategy - The company’s flagship game, "City of the Rising Sun," continues to show growth, with average monthly revenue reaching 35 million USD in the first half of 2023 [1]. - The company has adjusted its content update and marketing strategies for "City of the Rising Sun," aiming to enhance user engagement and retention [1]. - The company ranks 6th among Chinese game developers in overseas revenue as of Q3 2023, indicating a stable market position [1]. Future Outlook - The company is expected to maintain revenue growth from "City of the Rising Sun" and stabilize revenue from "War and Order" [1]. - The anticipated launch of new games in 2024 is expected to further boost revenue and profitability [2][1].