KINGNET(SZ:002517) GOLDEN SUN SECURITIES·2024-10-29 02:35Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company has launched multiple new games both domestically and internationally, showcasing a rich reserve of quality IP products. The overseas performance of "The Legend of Sword and Fairy: A New Beginning" has been particularly impressive [1]. - For the first three quarters of 2024, the company achieved a revenue of 3.928 billion yuan, representing a year-on-year growth of 29.65%, and a net profit attributable to shareholders of 1.280 billion yuan, up 18.27% year-on-year [1]. - The company is advancing several high-quality IPs into its portfolio, including collaborations for mobile games based on renowned literary works [1]. - The integration of AI technology in game development has led to significant improvements in efficiency, with the "Xingyi" model enabling fully automated game generation [1]. - Revenue forecasts for 2024-2026 are projected at 5.283 billion, 6.181 billion, and 6.923 billion yuan, with corresponding year-on-year growth rates of 23%, 17%, and 12% [1]. Financial Overview - For 2024, the company is expected to achieve a net profit of 1.707 billion yuan, with a year-on-year growth rate of 16.8% [2]. - The company's earnings per share (EPS) is projected to increase from 0.68 yuan in 2023 to 0.79 yuan in 2024, and further to 0.92 yuan in 2025 [2]. - The price-to-earnings (P/E) ratio is forecasted to decrease from 19.6 in 2023 to 16.8 in 2024, indicating a potentially attractive valuation [2].