CMGE(HK:00302) Guotou Securities·2024-03-31 16:00Investment Rating - The report assigns a "Buy-A" rating to the company, with a target price of 1.82 CNY for the next six months, based on a projected 13 times PE for 2024 [2][3]. Core Insights - The company reported a total revenue of 2.606 billion CNY for 2023, a decrease of 4% year-on-year, but achieved an adjusted net profit of 5.4 million CNY, marking a turnaround from loss to profit [2]. - The gaming portfolio remains robust, with stable performance from existing titles and promising results from new releases, contributing to a total publishing revenue of 2.133 billion CNY and self-developed revenue of 215 million CNY [2]. - The company is leveraging its rich IP reserves to maximize commercial value, with several major IP games set to launch in 2024, including "仙剑世界," which has already garnered over 4 million pre-registrations [2]. Financial Summary - The company’s revenue is projected to grow significantly, with estimates of 3.925 billion CNY in 2024, 7.704 billion CNY in 2025, and 10.380 billion CNY in 2026 [3]. - Adjusted net profits are expected to rise to 376.9 million CNY in 2024, 749.1 million CNY in 2025, and 986.7 million CNY in 2026, indicating strong growth potential [3]. - The earnings per share (EPS) is forecasted to be 0.14 CNY in 2024, 0.27 CNY in 2025, and 0.36 CNY in 2026, reflecting a positive growth trajectory [3].