SANQI HUYU(SZ:002555) East Money Securities·2024-05-14 10:00Investment Rating - The investment rating for the company is "Buy" (maintained) [3]. Core Views - The company reported a revenue of 16.547 billion yuan in 2023, a year-on-year increase of 0.86%, and a net profit attributable to shareholders of 2.659 billion yuan, a decrease of 10.01% year-on-year. For Q1 2024, the company achieved a revenue of 4.750 billion yuan, a year-on-year increase of 26.17%, but the net profit decreased by 20.45% year-on-year [2][5]. - The company plans to distribute a cash dividend of 3.7 yuan per 10 shares for the 2023 fiscal year and 2.1 yuan for Q1 2024, which is expected to boost investor confidence [2]. - Short-term performance is under pressure due to increased sales expenses, but profit release is anticipated as new games stabilize in operation [2][5]. Summary by Sections Financial Performance - In 2023, the company achieved a total revenue of 16.547 billion yuan, with a net profit of 2.659 billion yuan. The first quarter of 2024 saw a revenue of 4.750 billion yuan, marking a significant increase [2][6]. - The company expects revenues of 18.508 billion yuan in 2024, 20.252 billion yuan in 2025, and 22.179 billion yuan in 2026, with net profits projected at 3.012 billion yuan, 3.412 billion yuan, and 3.787 billion yuan respectively [5][6]. Product and Market Strategy - The company has a robust portfolio with eight products generating over 100 million yuan in monthly revenue. Key products include "Cloud City Song," "Call Me the Great Steward," and "Douluo Dalu: Soul Master Showdown" [2]. - The company is focusing on both self-developed and agency-based game offerings, with over 40 mobile game products in the pipeline, including self-developed titles like "Code Douluo MMO" and agency titles like "The Son-in-Law" [2][5]. Market Position - The company ranked among the top three Chinese mobile game publishers in overseas revenue in 2023 and is actively expanding its mini-game segment domestically [5].