G-bits(SH:603444) Soochow Securities·2024-03-30 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's 2023 performance met expectations, with total revenue of 4.185 billion yuan, down 19.02% year-on-year, and net profit attributable to shareholders of 1.125 billion yuan, down 22.98% year-on-year. The fourth quarter of 2023 saw revenue of 878 million yuan, up 34.35% year-on-year but down 8.33% quarter-on-quarter, with net profit of 266 million yuan, down 40.82% year-on-year but up 44.98% quarter-on-quarter [2][3] - Revenue pressure is attributed to the natural decline in existing game revenue and the delay in new game launches. The core products, "Wandao Mobile Game" and "Yinian Xiaoyao (Mainland Version)," experienced a decline in revenue due to their lifecycle, while new self-developed and agency games did not contribute significantly to revenue [2][3] - The company is increasing its R&D investment, with the number of R&D personnel rising from 530 in 2021 to 855 in 2023. The company has several self-developed and agency products in the pipeline, and there is optimism about the performance of new game launches [4] Financial Summary - For 2023, the company reported total revenue of 4.185 billion yuan and a net profit of 1.125 billion yuan. The earnings per share (EPS) for 2023 was 15.62 yuan, with a price-to-earnings (P/E) ratio of 12.21 [1][4] - The company expects EPS for 2024, 2025, and 2026 to be 14.83 yuan, 15.89 yuan, and 17.12 yuan respectively, with corresponding P/E ratios of 13, 12, and 11 [4] - The company's total assets for 2023 were 6.637 billion yuan, with total liabilities of 1.389 billion yuan and total equity of 5.248 billion yuan [11]