YAOJI TECHNOLOGY(SZ:002605) Guotai Junan Securities·2024-05-05 02:02Investment Rating - The report maintains a rating of "Accumulate" for the company Yaoji Technology (002605) with a target price of 31.31 CNY, down from the previous target of 51.80 CNY [4][5]. Core Views - The company has shown significant growth in performance for the year 2023, with active dividend distribution and timely expansion of production capacity. The focus is on the poker production capacity while also monitoring the profit contribution from the gaming business [4][5]. - The expected EPS for the company in 2026 is projected to be 2.20 CNY, with a downward adjustment from previous forecasts due to changes in industry conditions and the company's business pace [4][5]. Summary by Sections Financial Performance - The company reported a revenue of 4.307 billion CNY for 2023, representing a year-on-year growth of 10.01%. The net profit attributable to shareholders was 562 million CNY, a year-on-year increase of 61.37% [4][5]. - The mobile gaming segment generated a revenue of 1.226 billion CNY, with a gross profit of 1.177 billion CNY, reflecting a growth of 1.78% year-on-year [4][5]. Production and Expansion - The company is in the process of expanding its poker production capacity, with a target annual output of 600 million decks. The financing from convertible bonds is expected to alleviate capacity shortages [4][5]. - The production capacity utilization rate has consistently exceeded 120% from 2020 to 2022, indicating strong operational efficiency [4][5]. Market Position and Strategy - Yaoji Technology is gradually shifting its focus towards mobile gaming, leveraging its traditional business and expanding into the internet sector. The company employs automated production lines and high-quality materials to enhance production efficiency [4][5]. - The digital marketing business, as a long-term ecological partner of major engines, has benefited from the recovery of game licensing and increased demand for new game launches, with a year-on-year growth of 24.9% expected in this segment [4][5].