Investment Rating - The report maintains a "Buy" rating for the company Giant Network (002558) [3][10]. Core Views - The company reported a quarter-on-quarter revenue growth of 8.28% in Q3 2024, although there was a year-on-year revenue decline of 2.15% [3]. - The net profit attributable to shareholders decreased by 1.29% year-on-year, with a net profit of 1.071 billion yuan in Q3, reflecting a 16.18% decline year-on-year [3]. - The company has increased its sales expenses, with a sales expense ratio of 35.24% in Q3, up 7.49 percentage points year-on-year [3]. - The performance of the mini-program game "King's Journey" has been strong, ranking 9th to 14th in sales from July to October [4]. - The company showcased its AI capabilities at the 2024 Yunqi Conference, introducing new AI models that enhance its gaming business [4]. Financial Summary - For Q3 2024, the company achieved a revenue of 7.91 billion yuan, down 3.94% year-on-year but up 8.28% quarter-on-quarter [3]. - The projected earnings per share (EPS) for 2024-2026 are 0.71, 0.81, and 0.91 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 17, 15, and 14 times [4]. - The company's total revenue for 2024 is estimated at 3.011 billion yuan, with a year-on-year growth of 2.98% [5]. - The net profit for 2024 is projected to be 1.409 billion yuan, reflecting a year-on-year increase of 29.73% [5]. Market Position and Strategy - The company is focusing on the "Journey" IP sector, maintaining a strong position in casual competitive products while leveraging AI for business empowerment [4]. - The company has successfully launched both mini-program and app versions of its games, which are expected to support future revenue performance [4].

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a revenue of 791 million in Q3 2024, a year-on-year decrease of 3.94% but a quarter-on-quarter increase of 8.28%. The net profit attributable to the parent company was 353 million, down 16.18% year-on-year and down 3.34% quarter-on-quarter [3]. - The core products are performing steadily, with revenue continuing to show quarter-on-quarter growth. The "Journey" series is expected to maintain stable user numbers and revenue, while the casual competitive games have shown strong performance due to seasonal factors and version updates [3][4]. - The company is focusing on AI empowerment and IP development, with ongoing innovations in technology and gameplay expected to contribute to future performance growth [5]. Financial Performance Summary - For Q3 2024, the company experienced a slight increase in sales expenses to 280 million, up 22.0% year-on-year and 22.7% quarter-on-quarter, leading to a sales expense ratio of 35.2% [4]. - The company achieved an investment income of approximately 90 million in Q3 2024, down from 140 million in Q3 2023 and 200 million in Q2 2024 [4]. - The company’s contract liabilities stood at 490 million as of September 30, indicating potential revenue recognition in the future [5]. Profit Forecast and Investment Suggestions - The company is projected to achieve net profits attributable to the parent company of 1.45 billion in 2024 and 1.62 billion in 2025, corresponding to price-to-earnings ratios of 16.7 and 14.9, respectively [5].

证券代码：002558 证券简称：巨人网络 公告编号：2024－临 043 巨人网络集团股份有限公司 关于回购公司股份进展的公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有 虚假记载、误导性陈述或重大遗漏。 巨人网络集团股份有限公司（以下简称"公司"）于 2023 年 12 月 24 日收到 公司实际控制人、董事长史玉柱先生出具的《关于提议回购公司股份的函》，提 议公司以自有资金通过深圳证券交易所交易系统以集中竞价交易方式回购公司 已发行的部分人民币普通股（A 股）股票。公司于 2023 年 12 月 25 日召开第六 届董事会第六次会议，审议通过了《关于以集中竞价交易方式回购公司股份的方 案》，公司决定使用自有资金以集中竞价交易方式回购公司发行的 A 股社会公 众股，回购资金总额不超过人民币 2 亿元（含）且不低于人民币 1 亿元（含）， 本次回购股份价格上限不超过人民币 20 元/股（含）。若以回购金额上限 2 亿元、 回购价格上限 20 元/股测算，预计回购股份数量约为 10,000,000 股，约占公司当 时已发行总股本的 0.51%；若以回购金额下限人民币 1 亿元、回购价格上限 ...

Investment Rating - The report maintains a "Buy" rating for the company [4][6] Core Views - The company reported strong Q3 performance with revenue of 790 million, down 4% year-over-year, and a net profit of 350 million, down 16% year-over-year, which exceeded market expectations [4] - The "Wangzhe Zhengtu" game is supporting the stability of the Zhengtu IP, with revenue increasing for three consecutive quarters [4] - The company is expanding its mid-term pipeline with high certainty, focusing on AI integration in its products [5][6] Financial Performance - Q3 revenue and net profit figures indicate a better-than-expected performance, with a significant increase in contract liabilities year-over-year by 57% [5] - The company expects revenue for 2024-2026 to be 3.03 billion, 3.45 billion, and 4.18 billion respectively, with net profit projections of 1.40 billion, 1.63 billion, and 1.81 billion [6][8] - The current price-to-earnings ratio (PE) is at 17 for 2024, 14 for 2025, and 13 for 2026, indicating a relatively low valuation [6] Market Position - The Zhengtu IP has a current market size of 3 billion, significantly smaller than the 30 billion market size of the Legend IP, suggesting potential for growth [4] - The company has over 500 million registered users for the Zhengtu IP, indicating a strong user base compared to the Legend IP's 600 million [4]

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company's Q3 performance was strong, with revenue of 790 million yuan, a year-over-year decrease of 4%, and a net profit attributable to shareholders of 350 million yuan, down 16% year-over-year. However, these figures exceeded market expectations [4]. - The "Wangzhe Zhengtu" game has successfully supported the overall performance of the Zhengtu IP, with revenue increasing for three consecutive quarters. Despite a decline in revenue from "Yuan Shi Zhengtu," the newly launched "Wangzhe Zhengtu" mini-game has shown strong growth [4][5]. - The company is expanding its mid-term pipeline with high certainty, including new projects led by different teams, and is actively implementing AI technologies to enhance development efficiency [5][6]. Financial Data and Profit Forecast - The company reported total revenue of 2,924 million yuan in 2023, with projected revenues of 3,032 million yuan in 2024, 3,454 million yuan in 2025, and 4,175 million yuan in 2026 [8]. - The net profit attributable to shareholders is expected to be 1,401 million yuan in 2024, 1,629 million yuan in 2025, and 1,808 million yuan in 2026, reflecting a year-over-year growth of 29% in 2024 [6][8]. - The company's price-to-earnings ratio (PE) is projected to be 17x in 2024, 14x in 2025, and 13x in 2026, indicating a relatively low valuation compared to historical levels [6].

Investment Rating - The report assigns an "Accumulate" rating to the company, indicating a positive outlook for the stock in the near term [1][2]. Core Insights - The company achieved a revenue of 2.218 billion yuan in the first three quarters of 2024, a year-on-year decrease of 2.15%, while the net profit attributable to shareholders was 1.071 billion yuan, down 1.29% year-on-year [1]. - The company is focusing on the mini-game sector, with a quarter-on-quarter revenue growth of 8.28% in Q3 2024, driven by stable operations of mature products and the success of mini-games [1]. - The company is actively integrating AI into its gaming offerings, enhancing user experience and gameplay innovation through various AI-driven platforms and models [1]. - The company has implemented a cash dividend policy, distributing 1.4 yuan per 10 shares, totaling approximately 265 million yuan, which represents 31.92% of the net profit attributable to shareholders for the first three quarters [1]. Financial Summary - Revenue projections for 2024-2026 are 3.054 billion, 3.323 billion, and 3.616 billion yuan, with corresponding growth rates of 4.42%, 8.82%, and 8.83% [2][4]. - The net profit attributable to shareholders is forecasted to be 1.428 billion, 1.581 billion, and 1.752 billion yuan for the same period, with growth rates of 31.47%, 10.69%, and 10.84% respectively [2][4]. - The diluted earnings per share are expected to increase from 0.56 yuan in 2023 to 0.91 yuan in 2026 [4].

Investment Rating - The report maintains a "Buy" rating for the company [1][3]. Core Views - The company achieved Q3 revenue of 791 million RMB, a year-over-year decrease of 3.94% but a quarter-over-quarter increase of 8.28%. The net profit attributable to shareholders was 353 million RMB, down 16.18% year-over-year and down 3.34% quarter-over-quarter. For the first three quarters of 2024, the company reported revenue of 2.218 billion RMB, a year-over-year decrease of 2.15%, and a net profit of 1.071 billion RMB, a year-over-year decrease of 1.29% [1]. - The report highlights strong growth in the company's "Journey" series of mini-games and ongoing advancements in AI deployment, which supports the positive outlook [1][3]. Summary by Sections Financial Performance - Q3 2024 gross margin was 89.8%, a year-over-year increase of 0.2 percentage points, while the sales expense ratio rose to 35.2%, an increase of 7.5 percentage points year-over-year, primarily due to new mini-game promotions [1]. - The company expects to continue significant investment in user acquisition, leading to revised profit forecasts for 2024-2026, with net profits projected at 1.42 billion, 1.62 billion, and 1.79 billion RMB respectively [3]. Game Development - The "Journey" IP series mini-games continue to grow, with "King of Journey" maintaining a stable position in the top 10 of WeChat mini-game sales since its launch in February. The upcoming "Original Journey" mini-game is expected to increase user acquisition efforts in the second half of 2024 [2]. - The report notes the successful launch of new AI gameplay in "Space Kill," which is the first AI-native game feature based on a multi-agent large model [3]. Valuation - The target price for the company is set at 15.91 RMB, up from a previous estimate of 11.63 RMB, based on a projected 19 times PE ratio for 2025, compared to a sector average of 16 times [3].

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company's revenue in Q3 2024 reached 791 million yuan, a year-over-year decrease of 3.94%, but a quarter-over-quarter increase of 8.28%. The net profit attributable to the parent company was 353 million yuan, down 16.18% year-over-year and down 3.34% quarter-over-quarter [3][4] - The gross profit margin for Q3 2024 was 89.81%, an increase of 0.22 percentage points year-over-year [4] - The company is focusing on the performance of its mini-games, particularly the "Wangzhe Zhengtu" and the new version of "Yuanshi Zhengtu," which are expected to drive growth [5][7] Summary by Sections Financial Performance - For Q1-Q3 2024, the company achieved a total revenue of 2.218 billion yuan, a year-over-year decrease of 2.15%. The net profit attributable to the parent company was 1.071 billion yuan, a decrease of 1.29% year-over-year [4] - The company’s operating expenses for Q3 2024 were 2.79 million yuan for sales, 0.50 million yuan for management, and 1.89 million yuan for R&D, with year-over-year increases of 21.99%, 40.36%, and 3.34% respectively [4] Market Position - The company’s stock has performed well relative to the CSI 300 index, with a 1-month performance of 7.5%, 3-month performance of 45.6%, and a 12-month performance of 12.1% [4] - The "Wangzhe Zhengtu" mini-game ranked in the top 10 of the mini-game sales charts for July, August, and September 2024, indicating strong market traction [5] Future Projections - Revenue projections for 2024-2026 are 3.293 billion yuan, 3.639 billion yuan, and 3.926 billion yuan respectively, with net profits projected at 1.456 billion yuan, 1.654 billion yuan, and 1.814 billion yuan [7][8] - The expected EPS for 2024, 2025, and 2026 is 0.75 yuan, 0.86 yuan, and 0.94 yuan respectively, with corresponding P/E ratios of 16.88, 14.85, and 13.54 [8]

Investment Rating - The report maintains a "Buy" rating for the company [5][7]. Core Views - The company has launched the AI-native gameplay in the mobile game "Space Kill" and released two self-developed large models, enhancing its game interaction experience and content creation capabilities [3][4]. - The "Journey" IP has shown strong performance with the mini-game "King's Journey" ranking as high as fourth in the WeChat mini-game sales chart, indicating effective low-cost user acquisition strategies [2]. - The company is actively building an MMO esports event system, with multiple esports formats already launched for the "Journey" IP series games [2]. Financial Overview - For the first three quarters of 2024, the company reported a revenue of 2.218 billion yuan, a year-on-year decline of 2.15%, and a net profit attributable to shareholders of 1.071 billion yuan, down 1.29% year-on-year. The net profit excluding non-recurring items was 1.274 billion yuan, up 14.16% year-on-year [1]. - In Q3 2024, the company achieved a revenue of 791 million yuan, a year-on-year decrease of 3.94%, but a quarter-on-quarter increase of 8.28%. The net profit attributable to shareholders was 353 million yuan, down 16.18% year-on-year, but up 3.34% quarter-on-quarter [1]. - The company has adjusted its profit forecast for 2024-2026, expecting net profits of 1.510 billion, 1.730 billion, and 1.946 billion yuan respectively, with growth rates of 39.0%, 14.6%, and 12.5% [5][6]. Financial Metrics - The company’s projected revenue for 2024 is 3.105 billion yuan, with a year-on-year growth rate of 6.2%. The projected net profit for 2024 is 1.510 billion yuan, with a year-on-year growth rate of 39.0% [6][13]. - The earnings per share (EPS) for 2024 is expected to be 0.78 yuan, with a projected price-to-earnings (P/E) ratio of 16.3 times [6][13]. - The company’s return on equity (ROE) is projected to be 11.5% in 2024, increasing to 11.9% by 2026 [6][13].

Financial Performance - Total revenue for Q3 2024 was ¥791,274,181.21, a decrease of 3.94% year-over-year[2] - Net profit attributable to shareholders was ¥353,093,651.88, down 16.18% compared to the same period last year[2] - Net profit excluding non-recurring items was ¥389,792,919.64, reflecting an 8.23% decline year-over-year[2] - Basic earnings per share decreased by 17.39% to ¥0.19[2] - The net profit for Q3 2024 was approximately ¥1.08 billion, a slight decrease from ¥1.09 billion in Q3 2023, representing a year-over-year decline of about 0.3%[18] - The total comprehensive income for Q3 2024 was approximately ¥927.39 million, down from ¥1.43 billion in Q3 2023, indicating a decrease of around 35%[18] Cash Flow and Investments - Cash flow from operating activities for the year-to-date was ¥734,918,882.14, down 8.19% from the previous year[2] - Cash flow from operating activities generated ¥734.92 million, compared to ¥800.47 million in the same period last year, reflecting a decline of approximately 8.2%[19] - The net cash flow from investment activities was negative at approximately -¥268.57 million, worsening from -¥27.21 million in the previous year[19] - The net cash flow from financing activities was negative at approximately -¥501.24 million, compared to -¥645.09 million in Q3 2023, showing an improvement of about 22.3%[20] - The company received cash from investment returns amounting to ¥73.15 million, an increase from ¥60.76 million in the previous year, indicating a growth of approximately 20.4%[19] Assets and Liabilities - Total assets increased by 3.87% to ¥13,887,674,350.33 compared to the end of the previous year[2] - The total liabilities rose to CNY 1,648,798,643.34, compared to CNY 1,638,581,089.32 in the previous year[15] - The company's equity attributable to shareholders increased to CNY 12,195,041,865.87 from CNY 11,688,701,654.62 in Q3 2023[15] - Cash and cash equivalents at the end of Q3 2024 stood at approximately ¥1.84 billion, a slight decrease from ¥1.86 billion at the end of Q3 2023[20] Shareholder Information - The total number of common shareholders at the end of the reporting period is 86,265[7] - The largest shareholder, Shanghai Giant Investment Management Co., holds 28.59% of the shares, totaling 564,205,115 shares[7] - The second largest shareholder, Shanghai Tengpeng Investment Partnership, holds 9.91% of the shares, totaling 195,574,676 shares[7] - The company has a total of 10 major shareholders, with the top 10 holding a significant portion of the shares[8] Share Repurchase Plan - The company plans to repurchase shares with a total amount not exceeding RMB 200 million, with a maximum repurchase price of RMB 20 per share[12] - As of September 30, 2024, the company has repurchased a total of 8,396,400 shares, accounting for 0.43% of the total share capital[12] - The maximum number of shares expected to be repurchased at the upper limit of the plan is approximately 10,000,000 shares[12] - The company’s stock repurchase plan was approved on December 25, 2023, and is set to be executed within 12 months[12] Operating Performance - Total operating revenue for Q3 2024 was CNY 2,218,411,601.50, a decrease of 2.15% from CNY 2,267,254,807.49 in Q3 2023[17] - Total operating costs decreased to CNY 1,637,464,224.15, down 2.96% from CNY 1,687,437,439.06 in the previous year[17] - The company reported an operating profit of CNY 1,115,407,147.36, compared to CNY 1,140,724,563.17 in the same period last year, reflecting a decrease of 2.23%[17] Research and Development - Research and development expenses for the quarter were CNY 520,990,402.11, slightly up from CNY 517,485,428.64 in Q3 2023[17] - The company plans to continue investing in new technologies and market expansion strategies to drive future growth[17] Financial Expenses - The company reported a significant increase in financial expenses, with a change of -109.14% due to decreased interest income[5]