G-bits(603444) 新浪财经·2025-04-25 06:31Core Viewpoint - The company reported strong revenue growth in Q1 2025, driven by the launch of new game "Wen Jian Chang Sheng" and stable performance of existing titles [1][2]. Financial Performance - Q1 2025 revenue reached 1.136 billion yuan, representing a year-over-year increase of 22.47% and a quarter-over-quarter increase of 29.43% [1]. - Net profit attributable to shareholders was 283 million yuan, up 11.82% year-over-year but down 1.43% quarter-over-quarter [1]. - Non-GAAP net profit was 275 million yuan, showing a year-over-year increase of 38.71% and a quarter-over-quarter increase of 4.11% [1]. Game Performance - "Wen Jian Chang Sheng" contributed 363 million yuan in revenue during Q1 2025 [1]. - Existing games showed mixed results: - "Wen Dao PC" revenue was 321 million yuan, down 16.3% year-over-year but up 34.9% quarter-over-quarter [1]. - "Wen Dao Mobile" revenue was 441 million yuan, down 15.9% year-over-year and down 4.3% quarter-over-quarter [1]. - "Yi Nian Xiao Yao" revenue was 130 million yuan, down 22.9% year-over-year but up 1.1% quarter-over-quarter [1]. International Business - The company's overseas revenue in Q1 2025 totaled 117 million yuan, a decrease of 15.95% year-over-year, primarily due to significant revenue drops from "Fei Ba Long Qi Shi" and "Yi Nian Xiao Yao" in international markets [1]. New Game Pipeline - The company is progressing with new game launches, including "Zhang Jian Chuan Shuo" and "Jiu Mu Zhi Ye," expected to launch in 2025 [2]. - "Wen Jian Chang Sheng" is anticipated to expand into Hong Kong, Macau, and international markets, potentially contributing to revenue growth [2]. - The game "Zhang Jian Chuan Shuo" has begun platform reservations and is set to launch in H1 2025 [2]. Profitability and Cost Structure - Gross margin improved by 1.64 percentage points year-over-year to 90.89% [2]. - Sales expense ratio increased due to higher marketing costs for new game promotions, while management expenses rose due to year-end bonuses [2]. Profit Forecast and Valuation - The company expects net profits of 1.18 billion yuan, 1.32 billion yuan, and 1.45 billion yuan for 2025, 2026, and 2027, respectively, reflecting growth rates of 24%, 12%, and 10% [3]. - The target price is set at 294.84 yuan, based on an 18x PE for 2025, considering uncertainties in new game revenues and the profitability of overseas operations [3].