G-bits(SH:603444) GF SECURITIES·2024-04-25 02:02Investment Rating - The report assigns a "Buy" rating, expecting the stock price to outperform the market by over 10% in the next 12 months [1]. Core Insights - The report highlights that the company's revenue for Q1 2024 is projected to be 9.27 billion yuan, with a year-over-year decline of 18.97% but a quarter-over-quarter increase of 5.6%. The gross margin is noted at 89.24%, showing a slight improvement [32]. - The company is expected to have a net profit of 1.25 billion yuan in 2024, with a forecasted net profit growth rate of 19.5% in 2025 [10][16]. - The report anticipates that the upcoming product launches will contribute positively to revenue, particularly with the celebration of the eighth anniversary of the game "Wandao" [8][9]. Financial Summary - The company's projected financials include: - Revenue: 5,168 million yuan in 2022, with a forecast of 4,185 million yuan in 2023, and expected to recover to 4,688 million yuan by 2026 [10][15]. - EBITDA: 2,305 million yuan in 2022, declining to 1,722 million yuan in 2023, with a gradual recovery expected thereafter [10][15]. - Net profit: 1,461 million yuan in 2023, with projections of 1,125 million yuan in 2024 and 1,312 million yuan in 2026 [10][15]. - The report provides a reasonable value estimate of 252.54 yuan per share based on a 18x PE valuation for 2024 [8][29].