G-bits(SH:603444)2026-02-03 02:49Summary of G-Bits (603444.SS) FY25 Preliminary Results Conference Call Company Overview - Company: G-Bits (603444.SS) - Industry: Gaming Key Financial Highlights - FY25 Preliminary Results: - Reported earnings guidance: Rmb1.69-1.86 billion, representing a year-over-year increase of 79-97% [2] - Core earnings guidance: Rmb1.65-1.8 billion, reflecting an increase of 88-105% year-over-year [2] - 4Q25 net profit expected: Rmb476-646 million, a year-over-year increase of 66-125% [2] - Comparison to Estimates: - Mid-point of reported earnings is in line with the analyst's estimate of Rmb1.77 billion and 8% above the market consensus of Rmb1.64 billion [2] Game Contributions - Key Titles Driving Growth: - New game contributions from "Scepter & Sword" and "Wen Jian Chang Sheng" in both domestic and overseas markets [2] - Launch of mini game "Dao You Lai Wa Bao" also contributed to earnings [2] Future Expectations - Upcoming Releases: - "Jiu Mu Zhi Ye" Season 2 launching on February 7, featuring new gameplay elements and characters [3] - 4Q25E and 2026E Forecasts: - 4Q25E revenue forecast: Rmb1.52 billion, a 73% year-over-year increase, but a 23% quarter-over-quarter decrease [4] - 2026E total revenue forecast: Rmb6.18 billion, a 2.6% year-over-year increase [4] Market Position and Strategy - Investment Recommendation: - Maintain "Buy" rating with a target price of Rmb550, indicating a potential share price return of 20.9% and a dividend yield of 4.1% [6] - Market Capitalization: Rmb32,779 million (approximately US$4,715 million) [6] Risks and Challenges - Downside Risks: - Concentrated game portfolio with a mature life cycle [10] - Potential for softer monetization performance of key titles in the remainder of 2025 [10] - Risks associated with slower new game launches and lower profitability due to weaker operating leverage [10] Conclusion - G-Bits is positioned for growth driven by new game releases and strong preliminary earnings. However, investors should be cautious of potential risks related to its game portfolio and market conditions. The company remains a strong buy based on its resilient earnings and growth prospects.