G-bits(603444) 国元证券·2025-03-30 10:15Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% compared to the benchmark index [3][6]. Core Insights - The company reported a slight decline in overall performance for 2024, with total revenue of 3.6968 billion yuan, down 11.69% year-on-year, and a net profit attributable to shareholders of 944.92 million yuan, down 16.02% year-on-year. However, the company has implemented dividend and share buyback strategies to boost investor confidence [2][3]. - The company is focusing on long-term operations of core products, with a slight increase in revenue from its flagship game "Ask the Way" and a significant decline in revenue from "A Thought of Immortality." New game launches are expected to contribute positively to revenue in the coming year [2][3]. Financial Performance Summary - In Q4 2024, the company achieved revenue of 877 million yuan, a slight decrease of 0.08% year-on-year, and a net profit of 287 million yuan, an increase of 8.13% year-on-year. The company maintained a high R&D investment rate of 20.50% [2][5]. - The company has a clear product launch schedule for 2025, with expected new releases that could drive revenue growth. The overseas gaming business has shown strong growth, with annual overseas revenue reaching 500 million yuan, up 83.92% year-on-year [2][3]. Earnings Forecast - The company is projected to achieve net profits of 1.1 billion yuan, 1.255 billion yuan, and 1.425 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding EPS of 15.3, 17.4, and 19.8 yuan. The PE ratios are expected to be 14x, 13x, and 11x for the same years [3][5].