KINGNET(SZ:002517) KAIYUAN SECURITIES·2024-10-29 13:57Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 3.928 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 29.65%, and a net profit attributable to shareholders of 1.280 billion yuan, up 18.27% year-on-year [2] - The growth in Q3 2024 was driven by stable performance from existing games and contributions from new titles [2] - The company is expected to continue benefiting from new game launches, maintaining a positive outlook for future growth [2] Financial Performance Summary - For Q3 2024, the company reported revenue of 1.372 billion yuan, a year-on-year increase of 30.33% and a quarter-on-quarter increase of 10.00% [2] - The net profit for Q3 2024 was 471 million yuan, up 31.52% year-on-year and 22.97% quarter-on-quarter [2] - The gross margin for Q3 2024 was 82.59%, with a net profit margin of 34.31% [4] Product Line Expansion - The company has been continuously enriching its product line with several new game launches, including "诸神劫：影姬" and "怪物联萌" [3] - Upcoming titles such as "龙之谷世界" and "斗罗大陆：诛邪传说" are expected to further enhance the product portfolio and drive revenue growth [3] AI Integration - The company is leveraging AI technology to enhance game development efficiency, which may lead to improved long-term profit margins [4] - The AI model can automate various aspects of game production, potentially reducing costs and increasing output [4] Financial Forecast - The company forecasts net profits of 1.818 billion yuan, 2.167 billion yuan, and 2.401 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.84, 1.01, and 1.12 yuan [2][5] - The current price-to-earnings ratio (P/E) is projected to be 16.1, 13.3, and 12.0 for the years 2024, 2025, and 2026 respectively [2][5]