Hubei Century Network Technology (300494) 海通国际·2024-03-10 16:00Investment Rating - The report assigns a "BUY" rating to the company, indicating a positive outlook for its stock performance over the next 12-18 months [20][22]. Core Insights - The company has a mature IP operation and is steadily developing its gaming social networking segment, with a strong portfolio of classic client games and over 1,000 signed streamers under its MCN agency, boasting over 5 million followers [2][4]. - The company is actively exploring the integration of AI and XR technologies into its gaming and social applications, which is expected to drive significant growth in the coming years [4][6]. - Financial projections indicate a revenue increase from RMB 1.57 billion in 2023E to RMB 2.24 billion in 2024E, representing a 42.6% year-on-year growth, while net profit is expected to rise from RMB 231 million to RMB 324 million, a 40% increase [3][8]. Financial Overview - Revenue (in million RMB): 2021: 1,221; 2022: 1,658; 2023E: 1,567; 2024E: 2,235; 2025E: 2,533, with a YoY growth of 36.3% in 2021, 35.8% in 2022, a decline of 5.5% in 2023E, and a projected growth of 42.6% in 2024E [3][8]. - Net Profit (in million RMB): 2021: 125; 2022: 222; 2023E: 231; 2024E: 324; 2025E: 373, with a significant increase of 106.9% in 2021 and 77.7% in 2022, followed by a modest growth of 4.1% in 2023E and a projected 40% increase in 2024E [3][8]. - EPS (in RMB): 2021: 0.26; 2022: 0.45; 2023E: 0.47; 2024E: 0.66; 2025E: 0.76, reflecting a consistent upward trend in earnings per share [3][8]. Business Development - The company is focusing on the development of interactive games and XR platforms, collaborating with leading AR companies to enhance player experiences and explore new entertainment social business opportunities [4][6]. - The upcoming launch of key games, such as "大航海时代：海上霸主," is expected to support revenue stability and growth [6].