G-bits(SH:603444) GOLDEN SUN SECURITIES·2024-03-31 16:00Investment Rating - The report maintains a "Buy" rating for the company [18] Core Views - The company experienced a significant year-on-year decline in revenue and net profit for 2023, with total revenue of 4.185 billion and a net profit of 1.125 billion, representing declines of 19.02% and 22.98% respectively [11] - The fourth quarter of 2023 showed a notable improvement in performance compared to previous quarters, with a quarter-on-quarter increase in net profit of 44.98% [11] - The company is focusing on expanding its overseas business, which achieved revenue of 272 million, a year-on-year increase of 5.03% [13] - The company has a strong pipeline of new games set to launch in 2024, including "One Piece: Dream Pointer" and "Billion Light Years," which are expected to drive future revenue growth [14] Financial Overview - In 2023, the company reported total revenue of 4.185 billion, down from 5.168 billion in 2022, with a projected revenue of 4.444 billion for 2024 [16] - The net profit for 2023 was 1.125 billion, down from 1.461 billion in 2022, with an expected slight recovery to 1.077 billion in 2024 [16] - The company's earnings per share (EPS) decreased from 20.28 in 2022 to 15.62 in 2023, with a forecast of 14.95 for 2024 [16] Product Performance - The core product "Wandao Mobile" maintained stable revenue and profit, while new games launched in 2023 are still in the early stages of revenue generation [12][43] - The company has successfully launched several new games, including "Fly Dragon Knight" and "Super Evolution Story 2," which are expected to contribute to future revenue [12][43] - The company is enhancing its existing IPs and focusing on user engagement to improve the performance of its older games [31][38]