KINGNET(SZ:002517) Southwest Securities·2024-09-03 03:30Investment Rating - The report maintains a "Buy" rating for the company [1][3] Core Insights - The company's H1 2024 performance met expectations, with revenue of 2.56 billion yuan, a year-on-year increase of 29.3%, and a net profit attributable to shareholders of 810 million yuan, up 11.7% year-on-year [2] - The company plans to distribute a cash dividend of 1 yuan per 10 shares to all shareholders, totaling approximately 425 million yuan for the year [2] - The company is focusing on core sectors, investing 230 million yuan in R&D, which accounts for 8.9% of revenue, and has established an AI application research center [2] - The company is expanding its global product reach, with overseas revenue of 130 million yuan in H1 2024, a significant increase of 335% year-on-year [2] - The company is actively acquiring quality IPs to enhance new game development, partnering with Century Huatong and securing licenses for popular IPs [2] Financial Projections - The forecasted net profit attributable to shareholders for 2024-2026 is 1.74 billion yuan, 2.01 billion yuan, and 2.27 billion yuan, respectively, with corresponding PE ratios of 11x, 10x, and 9x [3] - The company's core products are performing steadily, with a solid foundation in legendary games and a rich pipeline of new projects expected to launch [3]