CENTURY HUATONG(002602) 海通国际·2024-05-29 11:00Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 5.95 per share based on a 17x PE for 2024 [2][10]. Core Insights - In 2023, the company achieved a revenue of RMB 13.29 billion, representing a year-on-year growth of 15.77%, with overseas revenue contributing RMB 6.10 billion, or 46% of total revenue [9]. - The company secured exclusive rights to the 'Legend' series in Continental China, which is expected to enhance its market position and unlock the commercial potential of the IP [9][10]. - The company is expanding into AI cloud data services, enhancing partnerships with Tencent Cloud and Huawei Cloud, and forming a joint venture for computing power services, which is anticipated to create broader growth opportunities [2][9]. Financial Performance - The company reported an operating profit of RMB 0.99 billion and a net profit attributable to shareholders of RMB 0.52 billion in 2023 [9]. - For Q1 2024, the company achieved a revenue of RMB 4.26 billion, a 40.99% increase year-on-year, with a net profit attributable to shareholders of RMB 0.65 billion, reflecting a 50.32% growth [9][10]. - The forecast for EPS is RMB 0.35, 0.41, and 0.49 for the years 2024, 2025, and 2026 respectively, indicating a strong recovery and growth trajectory [2][10]. Revenue Breakdown - The revenue forecast for 2024 is projected at RMB 15.92 billion, with continued growth expected in subsequent years, reaching RMB 21.31 billion by 2026 [3][4]. - The revenue from mobile network games is expected to grow from RMB 7.79 billion in 2023 to RMB 9.35 billion in 2024 [4][6]. - The company is also diversifying its revenue streams with contributions from cloud data services and other segments, which are expected to grow significantly in the coming years [4][6].