20231117-招银国际-Games_revenue_growth_accelerated_with_solid_margin_expansion_7页_1mb

报告摘要

17 November 2023

3Q23 Performance: Revenue increased 12% YoY to RMB27.3bn (slightly below consensus estimate), operating income grew 59% YoY to RMB7.6bn (beat estimates by 9/4%).
Gross Margin Expansion: Overall GPM improved to 62.2%, driven by higher-margin channels and game performance.
Games Revenue: Grew 16% YoY to RMB21.8bn, fueled by new titles like Justice Mobile and Dunk City Dynasty.
Non-gaming Segments: Cloud music revenue dipped 16% YoY to RMB2.0bn but improved GPM to 27.2%; Youdao revenue rose 10% YoY to RMB1.5bn.
Margin Management: S&M expenses decreased 5% YoY despite new game launches, leading to OPM of 27.7%.

Revenue Acceleration: Expect revenue growth to pick up in 4Q23 due to strong new game titles; 2024E growth supported by pipeline including games like Where Winds Meet.
GPM Sustainability: Margin improvements are expected to persist, underpinning earnings growth.
Valuation Adjustment: Non-GAAP earnings forecast raised by 4-9%, target price lifted to US$132.5 (up 15.1% from previous US$125.0), maintaining BUY rating.

Analyst Certification: Views reflect personal forecasts, no conflicts declared prior, though investment banking relationships exist with covered companies.
Stock Performance: Current price US$115.08; peers show mixed valuations.

展开完整摘要