G-bits(603444) 长城证券·2025-04-29 10:54Investment Rating - The report maintains a "Buy" rating for the company, expecting the stock price to outperform the industry index by more than 15% in the next six months [5][16]. Core Views - The company's Q1 2025 performance showed significant growth, with revenue reaching 1.136 billion yuan, a year-on-year increase of 22.47% and a quarter-on-quarter increase of 29.44%. The net profit attributable to shareholders was 283 million yuan, up 11.82% year-on-year but down 1.43% quarter-on-quarter [1][3]. - The new game "Wanjian Changsheng" has performed well, contributing to revenue and profit growth, and is expected to launch in additional regions, including Hong Kong, Macau, and Europe and the United States [2][3]. - The company is also focusing on upcoming game launches, such as "Zhangjian Chuanqi," which is set to officially launch in the first half of 2025, and the SLG game "Jiumu Zhiye," expected in the second half of 2025 [2][3]. Financial Summary - For 2023A, the company reported revenue of 4.185 billion yuan, with a projected decline of 19.0% year-on-year. However, revenue is expected to recover in 2025E to 4.409 billion yuan, reflecting a growth rate of 19.3% [1][9]. - The net profit attributable to shareholders for 2023A was 1.461 billion yuan, with a projected decline of 23.0% year-on-year. By 2025E, net profit is expected to rise to 1.134 billion yuan, indicating a growth rate of 20.0% [1][9]. - The company's return on equity (ROE) for 2023A was 27.8%, with a projected decline to 20.9% in 2024A, before stabilizing around 19.0% by 2027E [1][9]. Revenue and Profitability Metrics - The company's gross margin is projected to remain stable around 88.5% from 2023A to 2027E, indicating strong profitability [9]. - The earnings per share (EPS) for 2023A was 15.62 yuan, with projections of 15.74 yuan in 2025E and 19.92 yuan in 2027E, reflecting a positive growth trajectory [1][9]. Market Position and Future Outlook - The company is positioned in the media industry and has a total market capitalization of approximately 16.8 billion yuan as of April 28, 2025 [5]. - The report emphasizes the importance of new game launches in driving future growth, alongside the stabilization of existing game revenues [2][3].