G-bits(603444) 长江证券·2024-04-01 16:00Investment Rating - The report maintains a "Buy" rating for the company [15][17]. Core Insights - The company reported a revenue of 4.185 billion yuan in 2023, a decrease of 19.02% year-on-year, and a net profit attributable to shareholders of 1.125 billion yuan, down 22.98% year-on-year. In Q4 2023, revenue was 878 million yuan, a decline of 34.35% year-on-year, with a net profit of 266 million yuan, down 40.82% year-on-year [36][37]. - The performance of core products is expected to stabilize in Q1 2024, with a focus on the subsequent revenue trends and the release schedule of new products in 2024. The company has several new games lined up for release, including "Outpost: Infinity Siege" and "Flying Dragon Knight" [37][38]. Summary by Sections Financial Performance - The company achieved a total revenue of 4.185 billion yuan in 2023, with a net profit of 1.125 billion yuan. The Q4 2023 revenue was 878 million yuan, and the net profit was 266 million yuan [36][37]. - The company’s revenue from overseas reached 272 million yuan in 2023, an increase of 5.03% compared to 2022 [4]. Product Development and Market Strategy - The company has controlled its marketing expenses, with a significant decrease in sales expenses by 20.6% year-on-year and 11.5% quarter-on-quarter in Q4 2023 [5]. - New product launches are limited, but ongoing development efforts are expected to yield new titles in 2024, including several games that have recently received approval for release [37][38]. Future Outlook - The company forecasts net profits of 1.07 billion yuan and 1.26 billion yuan for 2024 and 2025, respectively, with corresponding price-to-earnings ratios of 12.8 and 10.9 [15]. - The upcoming releases and the performance of existing products will be critical in determining the company's revenue trajectory in 2024 [37].