Overall, we believe that the three major elements of regulation, economy, and the epidemic have all driven the company's performance downward, and that the three major factors have all been or are about to be mitigated. We estimate that the company achieved 1203/1485/178.1 billion in 22/23/24, a year-on-year growth rate of -2.8%/23.5%/19.9%, corresponding to the current PE increase of 24/20/16 times. We value the company 25 times next year, corresponding to a target market value of 3712.8 billion = HK$4292.8 billion. There is still room for an overall increase compared to the current price..
Total revenue is in line with expectations
We expect the company to achieve revenue of 140.6 billion yuan in Q1, up 3.9% year on year, down 2.5% month on month, basically in line with agreed expectations. Profit was 28 billion yuan, down 15.5% year on year, up 12.4% month on month, higher than the agreed forecast of 7.2%. The reason the profit was higher than the agreed forecast. The judgment isOur initiatives to reduce the company's costs and increase efficiencyMore optimistic.
Predicting a decline in domestic mobile game traffic
We expect the company's game business to achieve revenue of 54.1 billion, up 1.2% year on year and 6.6% month on month. Among them, mobile games achieved revenue of 41.9 billion yuan, up 1.0% year on year, 4.8% month on month, lower than the agreed forecast of 2.8%, and PC games achieved revenue of 12.1 billion yuan, up 20% year on year and 13.4% month on month, higher than the agreed forecast of 2.0%. But at the same time, we determined that the company's mobile game and PC game sales in the first quarter were the same...