SANQI HUYU(002555) 国泰君安·2024-04-22 08:02Investment Rating - The investment rating for the company is "Accumulate" [1][2] - Previous rating was also "Accumulate" [1][2] - Target price is set at 20.70 CNY, down from the previous forecast of 43.79 CNY [1][2] Core Insights - The company's revenue has been increasing quarterly, and profits are expected to be released after new products stabilize [1][2] - The company has a solid product position and a rich reserve, with game business revenue improving quarter by quarter, although profits are under pressure due to increased advertising for new game launches [1][2] - The company is expected to see profit release as new products enter a stable phase and advertising costs stabilize [1][2] Financial Summary - The company’s total revenue for 2023 is projected to be 165.47 billion CNY, a year-on-year increase of 0.86% [1][2] - The net profit attributable to shareholders for 2023 is expected to be 26.59 billion CNY, a decrease of 10.01% [1][2] - The company plans to adopt quarterly dividends, with a total not exceeding 15 billion CNY for the year [1][2] Earnings Per Share (EPS) Forecast - EPS for 2024 is forecasted at 0.35 CNY, down from the previous estimate of 0.28 CNY [1][2] - EPS for 2025 is expected to be 0.44 CNY, and for 2026, it is projected at 0.55 CNY [1][2] Market Position - The company ranks third in the annual list of Chinese game companies going overseas, with several successful products in the market [1][2] - The company has over 40 self-developed or agency mobile games in its product reserve [1][2] Financial Ratios - The company’s operating profit margin is projected to be 17.4% for 2024, with a net asset return rate of 21.3% [1][2] - The company’s debt-to-asset ratio is expected to be 32.5% in 2024 [1][2]