Investment Rating - The investment rating for the company is "Buy," indicating an expected return exceeding 10% relative to the CSI 300 index over the next six months [2][13]. Core Views - The report highlights that the company's core business is improving, with accelerated growth in cloud and AI services. The company achieved a revenue of 6.452 billion yuan in 2024, representing an 8.22% year-on-year increase, and a net profit of 1.428 billion yuan, which is a significant 60.92% increase year-on-year [8][9]. - The company is expected to maintain strong growth momentum driven by new game launches and optimization of its software business profitability structure. Forecasted net profits for 2025, 2026, and 2027 are 1.360 billion yuan, 1.584 billion yuan, and 1.840 billion yuan, respectively [9][11]. Financial Performance Summary - In 2024, the company reported a gross margin of 61.04%, a slight decrease of 1.69 percentage points year-on-year, while the net profit margin improved by 7.24 percentage points to 22.00% [8][9]. - The company’s revenue for Q1 2025 was 1.323 billion yuan, a decrease of 11.07% year-on-year, with a net profit of 239 million yuan, down 19.09% year-on-year [9]. - The company’s total assets are projected to grow from 8.132 billion yuan in 2024 to 13.060 billion yuan by 2027, indicating a strong growth trajectory [12]. Business Segment Performance - The gaming segment generated a revenue of 4.662 billion yuan in 2024, reflecting a year-on-year increase of 3.66%. The AI and ICT services also showed robust growth, with revenues of 1.478 billion yuan and 1.500 billion yuan, respectively, marking increases of 20.53% and 27.05% [9][11]. - The company is focusing on enhancing its core gaming business while expanding into AI and cloud services, which are expected to drive future growth [9]. Future Outlook - The company is well-positioned for future growth due to its strong game pipeline and the integration of AI and cloud services into its business model. The expected earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 0.69 yuan, 0.81 yuan, and 0.94 yuan, respectively [9][11].

Investment Rating - The report maintains a "Strong Buy" investment rating for the company [3][7]. Core Views - The company achieved significant growth in net profit for 2024, with a year-on-year increase of 60.92%, driven by effective marketing strategies in its gaming business and stable growth in software and IT services [7]. - Despite a decline in revenue and profit in Q1 2025, the company has a robust pipeline of new products in the SLG (Simulation and Strategy Game) sector, which are expected to perform well [7]. - The use of AIGC tools is enhancing operational efficiency and user experience in the software and IT services segment [7]. - The revenue forecast for 2025-2027 is adjusted to 71.30 billion, 77.00 billion, and 82.39 billion yuan, with corresponding net profits of 12.69 billion, 13.62 billion, and 14.36 billion yuan [7]. Financial Performance - In 2024, the company reported total revenue of 64.52 billion yuan, an increase of 8.22% year-on-year, and a net profit of 14.28 billion yuan, reflecting a growth of 60.92% [1][7]. - For Q1 2025, the company recorded a revenue of 13.23 billion yuan, a decrease of 11.07% year-on-year, and a net profit of 2.39 billion yuan, down 19.09% [1][7]. - The company plans to distribute a cash dividend of 1 yuan per 10 shares for the 2024 fiscal year, amounting to approximately 1.96 billion yuan [1]. Key Financial Metrics - The company has a total market capitalization of 21.5 billion yuan and a circulating market value of 19.9 billion yuan [3]. - The return on equity (ROE) stands at 18.9%, with a debt-to-asset ratio of 11.0% [3]. - The projected earnings per share (EPS) for 2025 is 0.65 yuan, with a price-to-earnings (PE) ratio of 16.9 [8].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's existing games are operating steadily while awaiting the launch of new games [1] - The gaming business shows robust performance with a strong pipeline of new games [8] - The computer business is experiencing significant growth driven by innovations in AI and ICT [8] Financial Performance Summary - Total revenue for 2023 is projected at 5,962 million, with a year-on-year growth of 24.06% [1] - Net profit attributable to the parent company for 2023 is expected to be 887.18 million, reflecting a year-on-year increase of 63.84% [1] - Earnings per share (EPS) for 2023 is estimated at 0.45 yuan [1] Revenue and Profit Forecast - Revenue is expected to reach 6,452 million in 2024, with a year-on-year growth of 8.22% [1] - The net profit for 2024 is projected at 1,427.67 million, indicating a year-on-year increase of 60.92% [1] - EPS for 2024 is forecasted to be 0.73 yuan [1] Game Business Insights - The gaming segment achieved revenue of 46.62 billion in 2024, with a year-on-year growth of 3.66% and a gross margin of 72.70% [8] - Key games such as "Age of Origins" and "War and Order" continue to perform well, contributing significantly to revenue [8] - New games like "Stellar Sanctuary" and "Next Agers" are set to launch in 2025, with expectations for substantial contributions to revenue [8] Computer Business Performance - The computer and other businesses generated revenue of 17.90 billion in 2024, reflecting a year-on-year increase of 22.21% [8] - AI/ICT operations accounted for 14.78 billion, growing by 20.53% year-on-year [8] - The company is actively integrating AI into various business lines, enhancing service offerings [8] Valuation Metrics - The projected P/E ratios for 2025, 2026, and 2027 are 19.49, 17.96, and 16.66 respectively [1] - The company maintains a strong financial position with a net asset value per share of 3.70 yuan [6]

Investment Rating - The report maintains a "Buy" rating for the company [5][7]. Core Insights - The company achieved a revenue of 6.452 billion yuan in 2024, representing a year-on-year growth of 8.22%, and a net profit attributable to shareholders of 1.428 billion yuan, up 60.92% [1]. - In Q1 2025, the company reported a revenue of 1.323 billion yuan, a decline of 11.07% year-on-year, and a net profit of 239 million yuan, down 19.09% [1]. - The company plans to distribute a cash dividend of 1 yuan per 10 shares for 2024 [1]. Financial Performance - The gross profit margin for 2024 decreased by 1.69 percentage points to 61.04%, while the sales expense ratio decreased by 9.06 percentage points to 15.60% [2]. - In Q1 2025, the gross profit margin improved by 2.37 percentage points to 61.30% compared to the previous quarter [2]. - The company’s game business revenue grew by 3.66% to 4.662 billion yuan in 2024, with overseas revenue increasing by 12.84% to 4.906 billion yuan [3]. Product Development and Innovation - The company launched two new games, "Stellar Sanctuary" and "Next Agers," in overseas markets at the end of 2024, which are currently in the commercialization testing phase [3]. - The company is focusing on AI technology applications across various business areas, having applied for 367 patents in the AI field, with 208 patents granted [4]. Profit Forecast - The company is expected to achieve net profits of 1.451 billion yuan, 1.681 billion yuan, and 1.888 billion yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 16, 13, and 12 [5][6].