Giant Network(SZ:002558) GOLDEN SUN SECURITIES·2024-08-31 04:12Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company reported a slight decline in revenue for H1 2024, with total revenue of 1.427 billion yuan, down 1.13% year-on-year, while net profit attributable to shareholders increased by 8.16% to 718 million yuan [1]. - The launch of multiple mini-program games under the "Zhengtu" IP has created new growth momentum, with "Wangzhe Zhengtu" achieving over 8 million new users and ranking fourth in the WeChat mini-game sales list [1]. - The casual gaming segment continues to show strong performance, with "Qiuqiu Zuozhan" maintaining revenue growth and "Super Sus" achieving record daily active users [1]. - The company has advanced its AIGC capabilities, successfully developing a TTS model and integrating various AIGC technologies into its self-developed products [1]. - Profit forecasts indicate a strong growth trajectory, with net profit expected to reach 1.537 billion yuan in 2024, reflecting a year-on-year growth rate of 41.5% [1]. Financial Summary - For H1 2024, the company achieved a revenue of 1.427 billion yuan, with a net profit of 718 million yuan and a non-GAAP net profit of 884 million yuan [1]. - The company expects to achieve net profits of 1.537 billion yuan, 1.735 billion yuan, and 1.903 billion yuan for 2024, 2025, and 2026 respectively, with corresponding year-on-year growth rates of 41.5%, 12.8%, and 9.7% [2][1]. - The current market capitalization corresponds to a PE ratio of 12, 11, and 10 times for the years 2024, 2025, and 2026 respectively [1].