YAOJI TECHNOLOGY(002605) 东吴证券·2024-05-09 06:30Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative performance of the stock to exceed the benchmark by more than 15% over the next six months [20][26]. Core Insights - The company achieved a revenue of 4.31 billion yuan in 2023, representing a year-on-year increase of 10.0%, and a net profit attributable to shareholders of 562.46 million yuan, up 61.4% year-on-year [9][20]. - For Q1 2024, the company reported a revenue of 980 million yuan, down 17.4% year-on-year, and a net profit of 150 million yuan, down 24.0% year-on-year [9][20]. - The company's gross profit margin slightly declined to 37.6% in 2023, down 1.1 percentage points year-on-year, primarily due to changes in revenue structure [2]. Financial Projections - Total revenue projections for the company are as follows: 4.82 billion yuan in 2024, 5.38 billion yuan in 2025, and 5.80 billion yuan in 2026, with respective year-on-year growth rates of 11.93%, 11.51%, and 7.80% [1]. - Net profit attributable to shareholders is projected to be 702.46 million yuan in 2024, 792.34 million yuan in 2025, and 868.53 million yuan in 2026, with growth rates of 24.89%, 12.80%, and 9.62% respectively [1]. - The latest diluted EPS is expected to be 1.70 yuan in 2024, 1.92 yuan in 2025, and 2.11 yuan in 2026 [1]. Cost Structure and Efficiency - The company's sales, management, and R&D expense ratios were 7.4%, 6.7%, and 5.6% respectively in 2023, with a notable decrease in sales expense ratio due to optimized marketing strategies in the gaming sector [2]. - The company plans to enhance production efficiency and expand its poker production capacity, which is expected to contribute positively to future revenue [16]. Market Position and Strategy - The company is a long-term ecological partner of major advertising platforms, contributing to its digital marketing revenue growth, which reached 1.91 billion yuan in 2023, up 24.9% year-on-year [26]. - The gaming segment remains a strong performer, with a gross margin of 96.01%, despite facing competitive pressures in overseas markets [16]. Valuation Metrics - The current stock price corresponds to a P/E ratio of 14 for 2024, 13 for 2025, and 12 for 2026, indicating a favorable valuation outlook [20]. - The company’s market capitalization is approximately 10.1 billion yuan, with a circulating A-share market value of about 8.08 billion yuan [11].