KINGNET(SZ:002517) Guohai Securities·2024-06-27 07:30Investment Rating - The report maintains a "Buy" rating for the company, Kaiying Network (002517) [6]. Core Insights - The company has undergone significant governance improvements and is focusing on its core business of "R&D, publishing, investment + IP," which is expected to initiate a new growth cycle [6]. - The new management, led by Chairman Jin Feng, has a strong background in the gaming industry and has been actively increasing his stake in the company, demonstrating confidence in its long-term prospects [6][30]. - The company has a rich pipeline of self-developed and published products for 2024, with a diverse IP reserve that is anticipated to contribute to revenue growth [6]. Summary by Sections Company Overview - Founded in 2008, Kaiying Network transitioned from web game development to mobile game publishing and development, successfully listing in 2015 [12]. - The company has faced challenges in 2018-2019 but has since reversed its fortunes under new management, focusing on a strategic approach that emphasizes R&D and IP [20][24]. Governance Improvements - The governance structure has been significantly improved since 2019, with the previous management's legal risks cleared and a new management team introduced [26][30]. - Jin Feng has become the actual controller of the company, having invested 1.53 billion yuan to increase his shareholding [30][31]. Product and Market Strategy - The company has a well-defined strategy that includes a strong focus on R&D, publishing, and investment in IP, which is expected to drive growth [6][37]. - The product pipeline for 2024 includes several promising titles across various genres, targeting both core and younger user demographics [6][24]. Financial Projections - Revenue forecasts for 2024-2026 are projected at 5.459 billion, 6.396 billion, and 6.960 billion yuan, respectively, with net profits expected to reach 1.865 billion, 2.187 billion, and 2.357 billion yuan [6]. - The earnings per share (EPS) are projected to be 0.87, 1.02, and 1.09 yuan, with corresponding price-to-earnings (PE) ratios of 11.3, 9.7, and 9.0 [6].