G-bits(603444) 国元证券·2024-03-31 16:00Investment Rating - The report maintains a "Buy" rating for the company, expecting the stock price to outperform the Shanghai Composite Index by more than 20% in the next six months [22][29]. Core Insights - The company reported a revenue of 4.185 billion yuan in 2023, a year-on-year decrease of 19.02%, primarily due to the natural decline in revenue from key products such as "Wandao Mobile Game" and "Yinian Xiaoyao (Mainland Version)" [22][23]. - The net profit attributable to the parent company was 1.125 billion yuan, down 22.98% year-on-year, with adjusted net profit at 1.169 billion yuan, reflecting a 21.35% decline [22][23]. - The company is focusing on a "small steps, fast running" strategy, emphasizing stable long-term operations of core products and expanding its self-developed game portfolio [23][32]. Financial Performance - In 2023, the company’s sales, management, and R&D expense ratios were 26.94%, 7.53%, and 16.23%, respectively, with R&D expenses increasing by 3.22 percentage points year-on-year [22][23]. - The company had 855 R&D personnel by the end of 2023, accounting for 59.09% of its workforce [22][23]. - The forecast for net profit attributable to the parent company for 2024-2026 is 1.090 billion, 1.230 billion, and 1.316 billion yuan, respectively, with corresponding EPS of 15.13, 17.07, and 18.26 yuan [23][26]. Product Development and Market Strategy - The company’s core long-term products are performing steadily, with "Wandao" and "Yinian Xiaoyao" achieving significant rankings in the iOS game sales charts [32]. - The self-developed product matrix is expanding, with several new games set to launch in 2024, including "Zuiqiang Chengbao" and "Zhangjian Chuanqi" [32]. - The company is actively exploring overseas markets and has a rich pipeline of new games, including both self-developed and agency titles [32].