2024-04-10 16:00Investment Rating - The investment rating for the company is "Buy" with a target price of $127.00, indicating a potential upside of 26.2% from the current price of $100.62 [12][23]. Core Insights - The recent collaboration with Blizzard is expected to have a limited short-term impact on performance, but it enhances long-term overseas cooperation opportunities. The agreement includes the return of Blizzard's games to the Chinese market and the launch of new games on Xbox and other platforms [11][12]. - The company's first-quarter and second-quarter mobile game revenue growth is projected to be around 10% year-on-year, slightly below previous expectations. The overall game revenue for the year is expected to increase by 12%, with PC and mobile games growing by 15% and 10%, respectively [1][11]. - Due to recent fluctuations in revenue, the revenue and profit forecasts for 2024 have been adjusted downwards by 2% and 4%, respectively. The target price has been revised from $135 to $127 [1][2]. Financial Summary - Revenue (in million RMB) is projected to grow from 96,496 in 2022 to 113,392 in 2024, reflecting a year-on-year growth of 9.6% [3]. - Net profit (in million RMB) is expected to increase from 22,808 in 2022 to 32,768 in 2024, with a growth rate of 0.6% [3]. - The company's earnings per share (EPS) is forecasted to be 50.44 RMB in 2024, with a slight adjustment of -4.1% from previous estimates [3][14]. - The price-to-earnings (P/E) ratio is projected to be 14.4 in 2024, indicating a favorable valuation compared to historical levels [3].