Q1业绩表现超预期，游戏业务利润进一步释放

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 15.1 CNY per share, compared to the current price of 9.73 CNY [4]. Core Insights - The company reported Q1 2024 earnings that exceeded expectations, with revenues of 1.488 billion CNY, representing a year-over-year increase of 22.8% but a quarter-over-quarter decrease of 22.1%. The gross margin was 63.65%, and the net profit attributable to shareholders was 295 million CNY, up 65.6% year-over-year but down 9.1% quarter-over-quarter [2]. - The gaming business showed steady growth, with titles like "City of the Rising Sun" and "War Fire and Order" performing well in overseas markets. The report anticipates further profit release in the gaming sector for the year [2][3]. - The computer business is expected to see growth driven by AI and cloud services, with a clear reduction in losses. Revenue projections for 2024-2026 are 6.84 billion CNY, 7.841 billion CNY, and 8.962 billion CNY, respectively, with net profits expected to be 1.167 billion CNY, 1.278 billion CNY, and 1.411 billion CNY [2][3]. Summary by Sections Financial Performance - Q1 2024 revenue was 1.488 billion CNY, with a gross margin of 63.65% and a net profit margin of 19.82%. Sales expenses were 288 million CNY, with a sales expense ratio of 19.38%, while management expenses were 257 million CNY, reflecting a management expense ratio of 17.25% [2]. - The company expects to achieve revenues of 6.84 billion CNY in 2024, with a growth rate of 14.7%, and net profits of 1.167 billion CNY, reflecting a growth rate of 31.5% [3][9]. Business Segments - The gaming segment is projected to continue its upward trajectory, supported by the performance of existing titles and the potential of upcoming releases. The computer segment is anticipated to benefit from advancements in AI and cloud services, contributing to a reduction in losses [2][3]. Valuation - The report employs a comparative valuation approach, assigning an 18x PE ratio for the gaming business and a 3x PS ratio for the computer business, leading to a target price of 15.1 CNY per share [2][3].