一季报开门红，游戏流水及利润率持续攀升

Investment Rating - Buy (maintained) [2] Core Views - The company reported strong Q1 2024 results with game revenue and profit margins continuing to rise [2] - 2023 revenue reached 5 96 billion yuan YOY+24 1% with net profit attributable to shareholders of 890 million yuan YOY+63 8% [3] - Q1 2024 revenue was 1 49 billion yuan YOY+22 8% with net profit attributable to shareholders of 300 million yuan YOY+65 6% [3] - Game revenue in 2023 was 4 5 billion yuan YOY+26 5% accounting for 75 4% of total revenue [5] - AI/ICT operations management revenue was 1 23 billion yuan YOY+20 1% accounting for 20 6% of total revenue [5] - Overseas and Greater China regions contributed 4 35 billion yuan YOY+31 3% accounting for 72 9% of total revenue [5] - Gross margin in 2023 was 62 7% YOY+2 3pct with game business gross margin at 71 1% YOY+3 6pct [5] - Net profit margin attributable to shareholders in 2023 was 14 9% YOY+3 6pct [8] - Core game products such as "Sunrise City" and "War and Order" showed strong performance with "Sunrise City" achieving 3 3 billion yuan in revenue YOY+30% [10] - The company's AI subsidiary Dingfu Intelligent achieved revenue of 140 million yuan YOY+114 5% [5] Financial Performance - 2023 revenue: 5 96 billion yuan YOY+24 1% [3] - 2023 net profit attributable to shareholders: 890 million yuan YOY+63 8% [3] - Q1 2024 revenue: 1 49 billion yuan YOY+22 8% [3] - Q1 2024 net profit attributable to shareholders: 300 million yuan YOY+65 6% [3] - 2023 game revenue: 4 5 billion yuan YOY+26 5% [5] - 2023 AI/ICT operations management revenue: 1 23 billion yuan YOY+20 1% [5] - 2023 gross margin: 62 7% YOY+2 3pct [5] - 2023 net profit margin attributable to shareholders: 14 9% YOY+3 6pct [8] Business Segments - Game business: 4 5 billion yuan YOY+26 5% accounting for 75 4% of total revenue [5] - AI/ICT operations management: 1 23 billion yuan YOY+20 1% accounting for 20 6% of total revenue [5] - Overseas and Greater China regions: 4 35 billion yuan YOY+31 3% accounting for 72 9% of total revenue [5] Key Products - "Sunrise City": 3 3 billion yuan in revenue YOY+30% with active users YOY+21% and ARPU YOY+8% [10] - "War and Order": 1 15 billion yuan in revenue YOY+5% with active users YOY+2% and ARPU YOY+3% [10] - "Endless Sky": 180 million yuan in revenue YOY-22% due to reduced marketing efforts [10] Future Outlook - The company is expected to achieve net profit attributable to shareholders of 1 125 billion yuan in 2024 1 311 billion yuan in 2025 and 1 464 billion yuan in 2026 [10] - Core products such as "Sunrise City" are expected to continue performing well with new products potentially launching in 2025 [10]