KINGNET(002517) 国投证券·2024-10-29 03:23Investment Rating - The report maintains a "Buy-A" rating for the company with a target price of 18.60 CNY, reflecting a 20x PE valuation for 2025 [6][7]. Core Insights - The company reported strong performance in Q3 2024, with revenue reaching 39.28 billion CNY, a year-on-year increase of 29.65%, and a net profit of 12.80 billion CNY, up 18.27% year-on-year [2][3]. - The company is focusing on expanding its overseas market presence and maximizing the value of its existing IPs, with several new games launched and others in the pipeline [4][5]. - The financial forecasts predict continued growth in net profit, estimating 17.08 billion CNY for 2024, 19.98 billion CNY for 2025, and 23.14 billion CNY for 2026 [6][10]. Revenue and Profit Performance - For Q1-Q3 2024, the company achieved quarterly revenues of 13.08 billion CNY, 12.48 billion CNY, and 13.72 billion CNY, with Q3 showing a year-on-year revenue growth of 30.33% [3]. - The gross profit margin for the first three quarters was 82.21%, remaining stable, while the net profit margin improved to 34.0% in 2023 [3][11]. Product Pipeline and Market Strategy - The company has a robust pipeline with seven new games receiving approval for release between August and October 2024, indicating strong potential for revenue growth from new product launches [5][6]. - The company is actively exploring cross-industry collaborations to enhance its product offerings and IP monetization strategies [4]. Financial Projections - The report projects earnings per share (EPS) to increase from 0.79 CNY in 2024 to 1.07 CNY by 2026, reflecting the anticipated growth in net profit [6][10]. - The company’s market capitalization is approximately 28.61 billion CNY, with a circulating market value of about 25.44 billion CNY [7].