Ultrapower(SZ:300002) Huachuang Securities·2024-04-20 08:01Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [2][23]. Core Insights - The company achieved significant revenue and profit growth in 2023, with total revenue reaching 5.96 billion yuan, a year-over-year increase of 24%, and a net profit of 889 million yuan, up 64% year-over-year [2][3]. - The gaming segment, particularly the core product "Age of Origins," set new records, contributing to a net profit that slightly exceeded market expectations [2]. - The artificial intelligence business showed substantial growth, with revenue from the subsidiary Dingfu Intelligent reaching 140 million yuan, a year-over-year increase of 114% [2]. Financial Performance Summary - Total revenue for 2023 was 5.96 billion yuan, with a year-over-year growth of 24.1% [3]. - The net profit attributable to shareholders was 889 million yuan, reflecting a year-over-year growth of 63.7% [3]. - The company forecasts revenue of 6.98 billion yuan for 2024, representing a year-over-year growth of 17% [3]. - The projected net profit for 2024 is 1.10 billion yuan, with a year-over-year growth of 24.3% [3]. - The earnings per share (EPS) for 2023 was 0.45 yuan, expected to rise to 0.56 yuan in 2024 [3]. Business Segment Analysis - Gaming Business: Generated 4.5 billion yuan in revenue for 2023, with a year-over-year increase of 27%. The gross margin improved to 71.1%, up 3.6 percentage points year-over-year [2]. - Computer Business: Achieved revenue of 1.47 billion yuan, a year-over-year increase of 17%. The AI segment is expected to continue its growth trajectory into 2024 [2]. Valuation and Price Target - The report sets a target price range for the company's stock between 11.25 and 13.28 yuan, based on a price-to-earnings (P/E) ratio of 20x for the gaming business [2][5].