ZDDC(600633) 华泰证券·2025-04-23 01:25Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 16.27 [7][8]. Core Views - The company reported a significant increase in net profit for Q1 2025, with a year-on-year growth of 44.86%, attributed to improved sales expense ratios and contributions from fair value changes [1]. - The company is focusing on developing new consumption growth points such as the "Guzi Economy" while maintaining a strong user base in the leisure gaming sector, which is expected to provide stable revenue and profit [2]. - The company's IDC business aligns with AI computing demands, and the Zhejiang Big Data Trading Center is expected to benefit from the growing demand for AI data [3]. Summary by Sections Financial Performance - In Q1 2025, the company achieved revenue of RMB 706 million, a year-on-year increase of 4.16%, and a net profit of RMB 144 million, reflecting a year-on-year increase of 44.86% [1]. - The comprehensive gross margin for Q1 2025 was 57.52%, a decrease of 6.07 percentage points, primarily due to the rapid growth of the lower-margin digital marketing business [4]. Business Development - The company is implementing a "Quality Improvement and Efficiency Return" action plan, focusing on building advanced computing centers and AI application capabilities to enhance its digital entertainment business [2]. - The company has established three major IDC bases in Hangzhou and Beijing, which are expected to release additional cabinet resources in 2025, aligning with AI computing needs [3]. Profit Forecast and Valuation - The company maintains its profit forecast, expecting net profits of RMB 673 million, RMB 773 million, and RMB 906 million for 2025, 2026, and 2027, respectively, with growth rates of 31.57%, 14.88%, and 17.16% [5][6]. - The valuation is based on a sum-of-the-parts (SOTP) approach, with target multiples of 19.3X PE for gaming, 28X PE for marketing, and 8.4X PS for digital technology, leading to a target market value of RMB 16.27 per share [12][13].