KINGNET(SZ:002517) KAIYUAN SECURITIES·2024-08-08 07:30Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company is set to launch multiple significant IP mobile games, including "That Time I Got Reincarnated as a Slime: New World," which has a public beta scheduled for August 28, with over 2 million pre-registrations. The game is based on a highly popular light novel series with over 40 million copies sold and an anime adaptation that has garnered 720 million views in mainland China. The company has a strong track record with similar games, indicating potential for good performance [3] - The company has established strategic partnerships with Shanghai Film and Shengqu Games to enhance its IP collaboration and product offerings, which are expected to support long-term growth [4] - The company has made advancements in AI technology for game development, introducing a model that allows for fully automated game generation, which could significantly improve development efficiency [5] Financial Summary - The company forecasts revenue growth from 3.726 billion yuan in 2022 to 7.322 billion yuan in 2026, with a year-on-year growth rate of 56.8% in 2022, 15.3% in 2023, and projected 34.0% in 2024 [6] - The net profit attributable to the parent company is expected to rise from 1.025 billion yuan in 2022 to 2.401 billion yuan in 2026, with a year-on-year growth of 77.8% in 2022 and 42.6% in 2023 [6] - The company's gross margin is projected to remain strong, with rates of 75.0% in 2022 and 83.8% in 2026, while the net margin is expected to increase from 36.5% in 2022 to 42.5% in 2026 [6] - The earnings per share (EPS) is forecasted to grow from 0.48 yuan in 2022 to 1.12 yuan in 2026, with corresponding price-to-earnings (P/E) ratios decreasing from 20.7 in 2022 to 8.8 in 2026 [6] Market Position - The current stock price is 9.84 yuan, with a market capitalization of approximately 21.181 billion yuan. The stock has seen a 128.29% turnover rate over the past three months [7]