G-bits(SH:603444)2024-04-02 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a market price of RMB 190.77 and an industry rating of "Outperform" [7][9]. Core Views - The company's core product revenue has declined, but it has a rich reserve of game licenses, which supports the investment rating [3][9]. - The company is experiencing a decrease in revenue from core games, with a projected revenue of RMB 4.426 billion for 2024, reflecting a 5.77% increase from 2023 [4][14]. - The net profit attributable to the parent company is expected to be RMB 1.198 billion in 2024, showing a growth of 6.48% from 2023 [4][14]. Financial Summary - The company's sales revenue for 2023 was RMB 4.185 billion, down 19.02% year-on-year, while the net profit was RMB 1.125 billion, down 22.98% year-on-year [9][14]. - The gross profit margin for 2023 was 88.53%, a slight decrease of 0.20 percentage points compared to the previous year [10][14]. - The company plans not to distribute dividends for 2023, focusing on funding for future projects and overseas business development [10][11]. Product Pipeline - The company has a strong pipeline with at least five key products that have obtained licenses, including self-developed and agency products [10][11]. - Upcoming releases include "One Piece: Dream Pointer" scheduled for April 1, 2024, and several other titles expected in the second half of 2024 [10][11]. Valuation - The report projects net profits for 2024, 2025, and 2026 to be RMB 1.198 billion, RMB 1.382 billion, and RMB 1.531 billion, respectively, with corresponding P/E ratios of 11.44, 9.92, and 8.95 [9][10].