Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return that exceeds the market benchmark by over 20% in the next 6-12 months [4][8]. Core Insights - The company reported a revenue of 1.662 billion yuan for the first half of 2025, representing a year-over-year increase of 16.47%, and a net profit attributable to shareholders of 777 million yuan, up 8.27% year-over-year [1][4]. - The flagship mobile game "Original Journey" has seen significant user growth, with 5.86 million new users in its first month and over 20 million new users in the first half of 2025 [1][2]. - The game "Supernatural Action Group" has exceeded expectations, achieving a peak of over 1 million concurrent users and ranking in the top 4 of the iOS game sales chart [2]. Financial Performance - In Q2 2025, the company achieved a revenue of 938 million yuan, a year-over-year increase of 28.42%, and a net profit of 429 million yuan, up 17.49% year-over-year [1][4]. - The report forecasts net profits for 2025, 2026, and 2027 to be 2.289 billion yuan, 3.088 billion yuan, and 3.631 billion yuan respectively, with year-over-year growth rates of 60.6%, 34.9%, and 17.6% [2][3]. User Engagement and Innovation - The company has successfully integrated AI into its gaming experience, enhancing user interaction and engagement through innovative gameplay mechanics [2]. - The game "Original Journey" has fully integrated AI NPCs, improving user experience through strategic assistance and emotional companionship [2]. Market Position and Future Outlook - The company is well-positioned in the gaming industry, with a strong pipeline of new products and ongoing user engagement strategies [2][3]. - The report emphasizes the importance of monitoring the commercial performance of new titles, particularly "Supernatural Action Group," as user growth continues to accelerate [2].

Core Insights - The company reported a revenue of 1.662 billion yuan for the first half of 2025, representing a year-over-year increase of 16.47% [1] - The net profit attributable to shareholders was 777 million yuan, with a year-over-year growth of 8.27% [1] - The company’s flagship mobile games, "Original Journey" and "Ball Battle," have established a solid user base, with "Original Journey" achieving 5.86 million new users in its first month post-launch [1] Financial Performance - In Q2, the company achieved a revenue of 938 million yuan, marking a year-over-year increase of 28.42% [1] - The net profit attributable to shareholders for Q2 was 429 million yuan, reflecting a year-over-year growth of 17.49% [1] - The non-recurring net profit for Q2 was 444 million yuan, showing a year-over-year decline of 7.40% [1] Game Performance and User Growth - "Original Journey" has seen a total of over 20 million new users in the first half of 2025, with a stable monthly revenue of 100 million yuan [1] - "Ball Battle" has experienced significant user growth, with over 11 million new users in the first half of 2025 and over 1 million monthly active users for its mini-program [1] - "Supernatural Action Group" has exceeded expectations, achieving a milestone of over 1 million concurrent users and ranking in the top 4 of the iOS game sales chart [2] Product Development and Innovation - The game "Supernatural Action Group" has shown exponential growth in user base and revenue, with significant improvements in rankings from June to July [2] - The company is innovating game interactions through AI, with "Space Kill" introducing a new mode that combines users with AI entities for competitive gameplay [2] - The "Original Journey" IP has made significant progress in AI integration, enhancing user experience through intelligent NPCs [2] Profit Forecast - The company projects net profits attributable to shareholders of 2.289 billion yuan, 3.088 billion yuan, and 3.631 billion yuan for 2025, 2026, and 2027, respectively, with year-over-year growth rates of 60.6%, 34.9%, and 17.6% [2]

Group 1: Company Performance - In the first half of 2025, the company achieved operating revenue of 1.16 billion RMB, a year-on-year increase of 16.47% [2] - The net profit attributable to shareholders was 777 million RMB, reflecting a year-on-year growth of 8.27% [2] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 879 million RMB, a decrease of 8.07% year-on-year [2] Group 2: Shareholder Returns - The company announced a cash dividend of 1.50 RMB per 10 shares (including tax), totaling approximately 284 million RMB, which accounts for about 36.50% of the net profit attributable to shareholders [3] Group 3: Product Development and Strategy - The newly developed product "Supernatural Action Group" has shown rapid growth in user engagement and revenue since its launch, with significant contributions expected in future reporting periods due to revenue deferral factors [2] - The company plans to enhance the product's lifecycle by deepening content supply and continuously updating gameplay to meet player demands [4] Group 4: Market Position and Competition - "Supernatural Action Group" differentiates itself in the market with its unique gameplay combining "Chinese-style micro-horror" and multiplayer cooperation, which has led to strong social engagement and a low entry barrier for users [4] - The development team is agile and responsive to player feedback, ensuring continuous updates and improvements to maintain player interest [4] Group 5: Future Plans and Innovations - The company is exploring opportunities for "Supernatural Action Group" in overseas markets, leveraging previous experience from "Super Sus" in localization and overseas operations [7] - The company is committed to integrating AI technology into its core gaming business, enhancing product interaction and gameplay innovation [8]

Group 1 - The core viewpoint of the report indicates that Giant Network achieved a net profit attributable to shareholders of 777 million yuan in the first half of 2025, representing a year-on-year growth of 8.27% [1] - The company plans to distribute a cash dividend of 1.50 yuan (including tax) for every 10 shares to all shareholders [1] - The "Zhengtu" IP continues to advance the "evergreen game" strategy, upgrading content update logic to "layered experience + business synergy," effectively enhancing user stickiness and conversion of old players [1] Group 2 - The flagship mobile game "Original Zhengtu" successfully launched a mini-game version and initiated secondary promotion, achieving 5.86 million new users in the first month and over 20 million new users in the first half of the year [1] - The average monthly revenue of this product has remained stable at 100 million yuan, providing solid support for sustainable business development [1] - The new game "Supernatural Action Team" launched in January 2025 has exceeded expectations, becoming a benchmark for the company's recent innovative products [1] Group 3 - Due to the strong performance of the new game "Supernatural Action Team," the profit forecast has been revised upward, with the current market value corresponding to PE ratios of 29/17/15 times [1] - The report maintains a "buy" rating for the company [1]

Core Viewpoint - Giant Network has shown significant growth in its financial performance for the first half of 2025, driven by the success of its new game "Supernatural Action Group" and the expansion of its user base through existing IPs [1][3][6]. Financial Performance - The company reported a revenue of 1.662 billion yuan, representing a year-on-year increase of 16.47% [2]. - The net profit attributable to shareholders was 777 million yuan, up 8.27% from the previous year [2]. - The net cash flow from operating activities increased by 59.74% to 743 million yuan [2]. - Total assets reached 16.253 billion yuan, a growth of 10.25% compared to the end of the previous year [2]. Product Performance - "Supernatural Action Group," launched on January 23, 2025, achieved over 1 million concurrent users by July and ranked in the top 5 of the iOS free game chart [1][5]. - The game has garnered over 3 billion views on social media platforms, indicating a significant viral marketing effect [5]. - The flagship mobile game "Original Journey" added 2 million users in the first half of the year, maintaining a monthly revenue of 100 million yuan [6]. Strategic Transition - The success of "Supernatural Action Group" marks a pivotal shift for Giant Network from a traditional MMO developer to a "full-category game company" [6]. - The company is focusing on a "Evergreen Game" strategy, revitalizing classic IPs to attract new user demographics, including older users [6][8]. Industry Context - The gaming industry is undergoing a transformation with increased competition in the casual gaming sector, driven by technological advancements and changing consumer preferences [7]. - AI technology is becoming integral to game development, with major companies investing in self-developed models to create competitive advantages [7][8]. Innovation and Collaboration - Giant Network is leveraging AI in its game development processes, enhancing user interaction and experience through advanced technologies [8][10]. - The company is collaborating with various tech firms to build an AI infrastructure that supports its gaming ecosystem [10].

Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 38.99 [1][8]. Core Views - The company reported a revenue of RMB 1.662 billion for H1 2025, representing a year-over-year increase of 16.47%, and a net profit of RMB 777 million, up 8.27% year-over-year. The growth is primarily driven by increased game revenue, particularly from "Supernatural Action Group" [1]. - The company is optimistic about the continued contribution from "Supernatural" and the ongoing integration of AI in gaming, which is expected to enhance user experience and drive long-term growth [1][3]. Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of RMB 938 million, a year-over-year increase of 28.42% and a quarter-over-quarter increase of 29.64%. The net profit for Q2 was RMB 429 million, up 17.49% year-over-year and 23.37% quarter-over-quarter [1]. - The company’s H1 gross margin was 90.78%, an increase of 2.36 percentage points year-over-year, attributed to a decrease in game-related operating costs [4]. Game Performance - "Supernatural Action Group" has shown rapid growth, with simultaneous online users exceeding 1 million in July, and it reached a peak position of TOP4 in the iOS game sales chart. The company’s strategy for older games has also proven effective, with "Original Journey" maintaining a stable monthly revenue of approximately RMB 100 million [2]. - The product "Ming Jiang Sha" received a new license in July and is set to begin its first paid test on August 27 [2]. AI Integration - The company is advancing the integration of AI in gaming, with the upcoming launch of "Space Kill" featuring a new mode that combines multiple users and AI entities in competitive gameplay, enhancing social interaction and strategic depth [3]. - The intelligent transformation of the "Journey" IP has made significant progress, with the core AI NPC achieving an accuracy rate of over 99% in strategy guidance, further improving user experience [3]. Profit Forecast and Valuation - The company has adjusted its profit forecasts for 2025-2027, raising the expected net profit to RMB 2.258 billion for 2025, RMB 3.275 billion for 2026, and RMB 3.700 billion for 2027, reflecting increases of 15.47%, 38.57%, and 40.96% respectively [5][12]. - The target price has been raised to RMB 38.99, based on a 23x PE for 2026, reflecting the strong performance of new products and the effective integration of AI in gaming [5].

Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Insights - The company achieved a revenue of 1.662 billion yuan in H1 2025, representing a year-on-year growth of 16.47%. The net profit attributable to shareholders was 777 million yuan, up 8.27% year-on-year, while the net profit excluding non-recurring items decreased by 8.79% [1]. - The flagship mobile game "Original Journey" successfully attracted 5.86 million new users in its first month after launching a mini-game version, with total new users exceeding 20 million in H1 2025. The average monthly revenue for this product remained stable at 100 million yuan [2]. - The newly launched game "Supernatural Action Group" exceeded expectations, quickly gaining a user base due to its unique gameplay and social interaction features. The game saw exponential growth in both user numbers and revenue in Q2 2025 [3]. - The company has integrated AI into its gaming experiences, enhancing user interaction and engagement. The new mode "Endgame Duel" in "Space Kill" features a mixed competition mechanism between users and AI, marking a significant innovation in the industry [4]. Financial Summary - For the fiscal year 2025, the company is projected to achieve a revenue of 3.683 billion yuan, with a year-on-year growth rate of 26%. The net profit attributable to shareholders is expected to reach 2.074 billion yuan, reflecting a growth rate of 45.5% [5]. - The company's earnings per share (EPS) is forecasted to be 1.07 yuan for 2025, with a projected price-to-earnings (P/E) ratio of 28.6 [5]. - The financial metrics indicate a strong growth trajectory, with net profit expected to increase to 3.933 billion yuan by 2027, corresponding to a growth rate of 13.6% [5].

Core Insights - The company reported a revenue of 1.662 billion yuan for the first half of 2025, representing a year-on-year growth of 16.47% [1] - The net profit attributable to shareholders was 777 million yuan, with an increase of 8.27% compared to the previous year [1] - A cash dividend of 1.50 yuan per 10 shares (including tax) is proposed for all shareholders [1] Group 1: Game Performance - The "Zhengtu" IP has effectively enhanced user engagement and conversion rates among existing players, with flagship mobile game "Original Zhengtu" achieving 5.86 million new users in its first month after launching a mini-game version [1] - The total number of new users for "Original Zhengtu" exceeded 20 million in the first half of the year, maintaining an average monthly revenue of 100 million yuan [1] - The self-developed casual game "Supernatural Action Group" has significantly outperformed expectations since its launch on January 23, becoming a benchmark for the company's innovative products [2] Group 2: User Engagement and Innovations - "Ball Battle" has seen over 11 million new users in the first half of the year, with a monthly increasing trend and daily active users exceeding 1 million for its mini-program [2] - "Space Kill" has collaborated with well-known IPs like "Detective Conan" to enhance game popularity and maintain stable revenue [2] - The overseas game "SuperSus" has a stable active user base, particularly in the Southeast Asian market, with daily active users in Indonesia reaching a two-year high and significant revenue growth [2] Group 3: AI Integration and Future Strategy - The company has integrated artificial intelligence technology into its core gaming business, innovating product interaction and gameplay mechanisms [3] - "Space Kill" has launched a new AI-native gameplay mode, collaborating with major domestic AI models to create a mixed competitive mechanism [3] - The company plans to deepen insights into user needs and leverage its R&D advantages to create high-quality games that align with market trends, thereby enhancing user coverage and promoting ecological diversity [3]

Group 1 - The gaming sector experienced a morning decline on August 28, with the gaming ETF (159869) dropping nearly 1%, while it attracted a net inflow of 206 million yuan over the past five trading days, indicating strong investor interest [1] - Giant Network (002558) reported a revenue of 1.662 billion yuan for the first half of 2025, representing a year-on-year growth of 16.47%, and a net profit attributable to shareholders of 777 million yuan, up 8.27% year-on-year [1] - The company highlighted that the self-developed hit game "Supernatural Action Group" has seen rapid growth in user base and revenue, although its main contributions will be reflected in future reports due to revenue deferral [1] Group 2 - In the new game segment, Giant Network's casual game "Supernatural Action Group" launched on January 23, 2025, has achieved significant performance, with user scale and revenue showing exponential growth, reaching over 1 million concurrent users in July [2] - The company believes "Supernatural Action Group" possesses the characteristics of a long-lasting hit, potentially driving mid-to-long-term growth [2] - Giant Network has integrated artificial intelligence into its core gaming business, enhancing product interaction and gameplay innovation, with ongoing collaborations with cloud service providers like Volcano Cloud, Alibaba Cloud, and Tencent Cloud to advance AI applications in gaming [2]

Core Viewpoint - Giant Network's stock has experienced significant fluctuations, with a year-to-date increase of 138.83% and recent trading activity showing a slight decline [1] Financial Performance - For the first half of 2025, Giant Network reported revenue of 1.662 billion yuan, a year-on-year increase of 16.47%, and a net profit attributable to shareholders of 777 million yuan, up 8.27% year-on-year [2] - Cumulative cash dividends since the company's A-share listing amount to 3.215 billion yuan, with 1.233 billion yuan distributed in the last three years [3] Shareholder Information - As of June 30, 2025, the number of shareholders is 50,200, a decrease of 15.24% from the previous period, while the average circulating shares per person increased by 17.98% to 38,532 shares [2] - The top ten circulating shareholders include Hong Kong Central Clearing Limited, which increased its holdings by 11.3969 million shares, and Huaxia CSI Animation Game ETF, which increased its holdings by 5.2489 million shares [3] Market Activity - On August 28, 2023, Giant Network's stock price was 29.98 yuan per share, with a trading volume of 171 million yuan and a market capitalization of 58.004 billion yuan [1] - The stock has appeared on the daily trading leaderboard three times this year, with the most recent instance on August 4, 2023, showing a net buy of -207 million yuan [1]