Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [29]. Core Insights - The company's Q4 2024 performance met expectations with a revenue of 1.94 billion yuan, a year-over-year increase of 1.5%, and a quarter-over-quarter increase of 33%. However, Q1 2025 showed pressure with a revenue of 1.32 billion yuan, reflecting a year-over-year decline of 11% and a quarter-over-quarter decline of 32% [1]. - The company anticipates new products to drive revenue growth, with two new SLG products expected to contribute positively in 2025 [7]. - The computer business is accelerating, with a revenue of 1.79 billion yuan in 2024, a year-over-year increase of 22%, primarily driven by cloud services [7]. Financial Performance Summary - Total revenue for 2024 is projected at 6.45 billion yuan, with a year-over-year growth rate of 8.2%. For 2025, revenue is expected to reach 6.87 billion yuan, reflecting a growth rate of 6.4% [3]. - The net profit attributable to the parent company for 2024 is estimated at 1.43 billion yuan, with a significant year-over-year growth of 60.9%. However, a decline of 10.7% is expected in 2025, with a projected net profit of 1.28 billion yuan [3]. - The earnings per share (EPS) for 2024 is forecasted at 0.73 yuan, decreasing to 0.65 yuan in 2025 [3]. Market Position and Valuation - The company's current market capitalization is approximately 21.98 billion yuan, with a target price range of 13.00 to 15.07 yuan based on performance expectations [3]. - The price-to-earnings (P/E) ratio is projected at 15 for 2024, increasing to 17 in 2025, while the price-to-book (P/B) ratio is expected to decrease from 3.1 to 2.7 over the same period [3].

Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [29]. Core Insights - The company's Q4 2024 performance met expectations, with a revenue of 1.94 billion yuan, a year-over-year increase of 1.5%, and a quarter-over-quarter increase of 33%. However, Q1 2025 showed a decline in performance, with revenue of 1.32 billion yuan, a year-over-year decrease of 11% and a quarter-over-quarter decrease of 32% [1]. - The company anticipates new products to drive revenue growth, with two new SLG products expected to contribute positively in 2025. The existing product line is expected to maintain stable revenue [7]. - The computer business is experiencing accelerated growth, with a revenue of 1.79 billion yuan in 2024, a year-over-year increase of 22% [7]. Financial Summary - Total revenue projections for 2025-2027 are 6.9 billion yuan, 7.8 billion yuan, and 8.6 billion yuan, respectively, with year-over-year growth rates of 6%, 13%, and 11% [3]. - The net profit forecast for 2025-2027 is 1.28 billion yuan, 1.41 billion yuan, and 1.55 billion yuan, with a year-over-year decrease of 11% in 2025, followed by increases in subsequent years [3]. - The company has a target price range of 13.00-15.07 yuan based on its performance and market conditions, with a current price of 11.20 yuan [3].

Core Viewpoint - The company reported a revenue of 6.452 billion yuan in 2024, representing a year-over-year increase of 8.22%, with a net profit of 1.428 billion yuan, up 60.92% year-over-year, indicating strong financial performance despite a decline in Q1 2025 [1] Group 1: Game Business - The gaming segment achieved a revenue of 4.662 billion yuan in 2024, with a year-over-year growth of 3.66% and a gross margin of 72.70%, reflecting a 1.56 percentage point increase [2] - The net profit from gaming was 1.552 billion yuan, up 40.47% year-over-year, with a net profit margin of 33.28%, an increase of 8.72 percentage points [2] - The company expects a natural decline in revenue from existing products in Q1 2025, leading to an overall revenue decrease of 11.07% year-over-year [2][3] Group 2: Future Outlook - The company plans to maintain long-term operations for existing games, with expectations for stable revenue from key titles like "Age of Origins" and "War and Order" [3] - New games "Stellar Sanctuary" and "Next Agers" are set to launch in overseas markets by the end of 2024, with plans for large-scale promotion in mid to late 2025 [3] - The company has additional RPG and SLG games in the pipeline, which are anticipated to contribute to revenue growth [3] Group 3: Computer Business - The computer and other businesses generated revenue of 1.790 billion yuan in 2024, marking a year-over-year increase of 22.21% [4] - AI/ICT operations accounted for 1.478 billion yuan, growing 20.53% year-over-year, while IoT/communications revenue reached 133 million yuan, up 62.30% [4] - The company is focusing on integrating AI across various business lines, enhancing profitability and growth potential [4] Group 4: Profit Forecast and Investment Rating - The company has adjusted its earnings per share (EPS) forecasts for 2025-2027 to 0.59, 0.64, and 0.69 yuan, respectively, reflecting a downward revision from previous estimates [5] - The current price-to-earnings (PE) ratios are projected at 19, 18, and 17 times for 2025-2027 [5] - The company maintains a "buy" rating, supported by strong computer business growth and a robust pipeline of new games [5]