PWRD(002624) 上海证券·2024-04-19 00:30Investment Rating - Buy (Maintained) [1] Core Views - The company's performance met expectations, with new game launches expected to drive future performance improvements [1] - Revenue in 2023 was RMB 7.791 billion, up 1.57% YoY, while net profit attributable to shareholders was RMB 491 million, down 64.31% YoY [2] - The company is focusing on long-term operation of existing games and steady progress in R&D of new products [4] - The company is committed to a high-quality content strategy, emphasizing "quality over quantity" [9] - The company is exploring cutting-edge technology applications to enhance product upgrades [9] Financial Performance - 2023 revenue: RMB 7.791 billion (+1.57% YoY) [2] - 2023 net profit attributable to shareholders: RMB 491 million (-64.31% YoY) [2] - Q4 2023 revenue: RMB 1.595 billion (+18.57% YoY), net profit attributable to shareholders: -RMB 123 million (-90.27% YoY) [2] - Game business revenue in 2023: RMB 6.669 billion (-7.91% YoY) [3] - Film and TV business revenue in 2023: RMB 1.034 billion (+222.46% YoY) [3] Game Business - The company is focusing on long-term operation of existing games and steady progress in R&D of new products [4] - The company is developing multiple new games, including "Zhu Xian 2," "Shen Mo Da Lu," and "Perfect New World" [4] - Existing games such as "Zhu Xian," "Perfect World International Edition," and "CS: Global Offensive" continue to contribute stable revenue [9] - The company is actively testing new games like "Persona: Phantom of the Night" and "One Punch Man: World" [9] Film and TV Business - The company produced several high-quality TV dramas in 2023, including "The Starry Love" and "The Ingenious One" [9] - The company has a strong pipeline of upcoming TV dramas, such as "Xu Ni Sui Yue Jing Hao" and "Zhi Ci Jiang Hu Meng" [9] - The company has entered the short drama market, with several productions ranking high on platforms like Douyin and Youku [9] Technology and Innovation - The company is exploring AI, VR, AR, and MR technologies to enhance game development and production pipelines [9] - The company has developed AI tools for game development, including Dialogue+ and AI-generated scenarios [9] - In February 2024, the company's self-developed game business vertical large model completed filing, enhancing intelligent dialogue services in games [9] - In March 2024, the company's game "Zhu Xian World" integrated NVIDIA's Audio2Face technology [9] Future Outlook - The company is expected to achieve net profit attributable to shareholders of RMB 1.007 billion in 2024, up 104.9% YoY [9] - Revenue is projected to grow to RMB 9.355 billion in 2024, up 20.1% YoY [10] - The company's valuation is expected to be 19x, 16x, and 14x for 2024, 2025, and 2026, respectively [9] Stock Performance - The stock price has underperformed the CSI 300 index over the past year, with a decline of 53% compared to the index's 44% decline [7] - The latest closing price is RMB 9.86, with a 12-month price range of RMB 9.00-22.91 [6]