运营数据创新高，社区用户黏性强2024第三季度公司DAU和MAU分别为1.07和3.48亿，均创历史新高。同时，日均用户使用时长也创出106分钟的新高，同比增长6分钟。我们认为，用户活跃度和黏性的增长有利于长期的多元商业化发展，创造出更多的社区价值，这将有效推动大会员、直播及其他增值服务的增长。Core views
Incident The company released its 2024 three-quarter report: in the third quarter of 2024, the company achieved operating income of 7.306 billion yuan, a year-on-year increase of 26%; net profit to mother was -0.08 billion yuan, a decrease of 94% year on year; adjusted net profit was 0.236 billion yuan. For the first time, the company turned a loss into a profit under non-GAAP. The company's gross profit margin for the third quarter of 2024 was 34.9%, and the year-on-year increase was close to 5pct of gross margin in a single quarter, achieving nine consecutive quarters of month-on-month growth.
“Three Moves” operated steadily, contributing to long-term incremental performance. The company's new game “Three Kingdoms: Designing the World performed well during the year. After launch, it was at the top of the AppStore game bestseller list. After starting the S3 season at the end of September, it ranked second in the highest ranking game bestseller list. Product flow is expected to be maintained after the S4 season starts with more gameplay and storylines. Considering the overall operating pace of SLG Gaming and the market performance at the beginning of the game's launch, we believe that “Three Kingdoms: Seek the End” has clearly boosted the company's game business, and it is expected that it will continue to contribute incremental performance to the company's game business.
Operating data reached record highs. Community user stickiness was strong. The company's DAU and MAU were 1.07 billion and 348 million respectively in the third quarter of 2024, both of which reached record highs. At the same time, the average daily user usage time also reached a new high of 106 minutes, an increase of 6 minutes over the previous year. We believe that the growth in user activity and stickiness is conducive to long-term diversified commercial development and creates more community value, which will effectively promote the growth of conference membership, live streaming and other value-added services.
The advertising business continued to grow rapidly, effectively freeing up commercial space. The advertising business revenue for the third quarter of 2024 was 2.094 billion yuan, an increase of 28% over the previous year. The company's product optimization and efficiency improvements have driven the continuous growth of the advertising business. The degree of commercialization of the popular community continues to deepen, effectively unleashing the value of the community.
Investment and construction: The company's new product launch performance is impressive. The continuous growth of the company's revenue side will drive the company's revenue side to accelerate growth. After the net profit loss due to adjustments in the 3Q24 single quarter was reversed, the company's profit level is expected to improve further. The company's revenue is expected to increase by 19.3%/14.9%/8.4% respectively in 2024-2026, reaching 26.876/30.886/33.494 billion yuan, maintaining the “recommended” rating.
Risk warning: the risk that the macroeconomy falls short of expectations, the risk of increased competition in the online video industry, the risk that the operating performance of new long-term channels falls short of expectations, and the risk that the advertising and live streaming business will fall short of expectations.
