SANQI HUYU(002555) 国盛证券·2024-08-27 08:26Investment Rating - The report maintains a "Buy" rating for the company [3] Core Views - The company achieved effective cost control in Q2 2024, with significant reductions in sales, management, and financial expenses [1] - The company's long-term operational capabilities for existing games have strengthened, with notable performance in overseas markets and significant efficiency improvements from AI tools [1] - The company's overseas business saw an increase in gross margin, with its SLG (Strategy Game) segment continuing to solidify its advantages [1] Financial Performance - In H1 2024, the company reported revenue of RMB 9.232 billion, a YoY increase of 18.96%, and net profit attributable to shareholders of RMB 1.265 billion, a YoY increase of 3.15% [1] - In Q2 2024, the company's revenue was RMB 4.482 billion, a YoY increase of 12.16%, and net profit attributable to shareholders was RMB 648 million, a YoY increase of 43.63% [1] - The company's gross margin in Q2 2024 was 77.41%, a decrease of 4.31 percentage points QoQ [1] Game Performance and Strategy - The company's self-developed card game "Douluo Continent: Soul Master Showdown" and MMORPG "Ren Xiu Xian Zhuan: Xiu Pian" successfully activated user engagement through new content and IP-driven strategies [1] - The company's overseas revenue in H1 2024 was RMB 2.898 billion, a YoY decrease of 4.27%, but the gross margin for overseas business increased by 3.32 percentage points to 76.13% [1] - The company launched new SLG games such as "MechaDomination" and "Puzzles & Chaos," which performed well in global markets, entering the top 20 strategy game charts in multiple regions [1] AI and Operational Efficiency - The company's internal AI tool "Xiao Qi" was upgraded, covering functions such as querying, graphic design, translation, and data analysis, with over 90% employee coverage, significantly improving operational efficiency [1] - The company is exploring AI-driven game production, including AI-generated game plots, materials, voiceovers, and music, and is developing intelligent NPC systems and game community content generation platforms [1] Future Projections - The company is expected to achieve revenues of RMB 18.532 billion, RMB 20.571 billion, and RMB 23.245 billion in 2024, 2025, and 2026, respectively, with YoY growth rates of 12.0%, 11.0%, and 13.0% [1] - Net profit attributable to shareholders is projected to be RMB 2.761 billion, RMB 3.202 billion, and RMB 3.780 billion in 2024, 2025, and 2026, with YoY growth rates of 3.9%, 16.0%, and 18.0% [1]