Giant Network(SZ:002558) Changjiang Securities·2024-09-04 02:10Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The company reported a revenue of 731 million in Q2 2024, a year-on-year decrease of 21.93% but a quarter-on-quarter increase of 4.93%. The net profit attributable to the parent company was 365 million, down 12.78% year-on-year but up 3.66% quarter-on-quarter. The non-recurring net profit was 480 million, showing a year-on-year increase of 11.74% and a quarter-on-quarter increase of 18.57% [6][7]. - The company plans to distribute a cash dividend of 1.4 yuan per 10 shares, totaling approximately 265 million, which accounts for 36.9% of the half-year net profit attributable to the parent company [6][7]. - Core products like "Original Journey" have shown stable long-term performance, while mini-games have seen continuous revenue growth. The company plans to launch a new version of "Original Journey" in Q3, which is expected to boost revenue [6][7]. Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 731 million, with a year-on-year decline of 21.93% and a quarter-on-quarter increase of 4.93%. The net profit attributable to the parent company was 365 million, down 12.78% year-on-year but up 3.66% quarter-on-quarter. The non-recurring net profit was 480 million, reflecting a year-on-year increase of 11.74% and a quarter-on-quarter increase of 18.57% [6][7]. - The company reported a total mobile game revenue of 1.069 billion, up 8.11% year-on-year, while PC game revenue was 338 million, down 22.11% year-on-year [6][7]. Product Performance - The "Original Journey" and other core products have maintained a stable user base and revenue. The "King's Journey" game has added over 8 million users since its launch and has seen continuous revenue growth for five months [6][7]. - Mini-games like "Ball Battle" have continued to grow in revenue, with significant increases in ARPU and payment penetration rates. The overseas version of "Space Kill," "Super Sus," has also seen stable growth in daily active users [6][7]. Future Outlook - The company plans to launch a new version of "Original Journey" in Q3, which is expected to enhance revenue. The company is also focusing on expanding its market reach through various partnerships [7]. - The company is advancing its AI technology integration in gaming, with ongoing projects aimed at innovating gameplay [7]. Profit Forecast - The company is projected to achieve net profits of 1.45 billion and 1.66 billion for 2024 and 2025, respectively, corresponding to PE ratios of 13.0 and 11.4 [7].