YAOJI TECHNOLOGY(002605) 华鑫证券·2024-05-05 23:30Investment Rating - Buy (Maintained) [4] Core Views - The company's main business, including poker cards, games, and digital marketing, showed mixed performance in 2023 with poker card revenue at 1.09 billion yuan (yoy -1.57%), game revenue at 1.23 billion yuan (yoy +1.9%), and digital marketing revenue at 1.91 billion yuan (yoy +24.9%) [9] - The company plans to expand its poker card production scale in 2024, focusing on the "Yaoji Guandan" product, which has gained consumer popularity [9] - The company is exploring new growth areas in sports culture, particularly through strategic investments in the sports card market, aiming to create a comprehensive entertainment industry chain [11][28] - The company's 2024-2026 revenue is forecasted to be 4.71 billion, 5.15 billion, and 5.68 billion yuan, with net profits of 640 million, 730 million, and 850 million yuan, respectively [13] Business Performance - In 2023, the company's total revenue was 4.3 billion yuan (yoy +10%), with net profit attributable to shareholders of 562 million yuan (yoy +61.4%) [4] - Q4 2023 revenue was 735 million yuan (yoy -33.2%), with a net profit of 5 million yuan (yoy -91.5%) [4] - Q1 2024 revenue was 982 million yuan (yoy -17.38%), with net profit of 151 million yuan (yoy -23.9%) [4] Strategic Development - The company is focusing on expanding its "big entertainment" strategy, including increasing poker card production and exploring overseas markets for its game business [27] - The company is also deepening its digital marketing efforts, with its subsidiary Xiting Culture steadily attracting businesses to the Shanghai International Short Video Center [27] Financial Forecast - The company's EPS for 2024-2026 is projected to be 1.56, 1.78, and 2.07 yuan, with corresponding P/E ratios of 16.6x, 14.5x, and 12.5x [13] - The company's ROE is expected to remain stable at around 17% from 2023 to 2026 [30]