KINGNET(SZ:002517) Tai Ping Yang·2024-10-31 07:46Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [1][7]. Core Views - The company achieved strong performance in Q3 2024, with revenue of 3.72 billion yuan, a year-on-year increase of 30.33%, and a net profit of 471 million yuan, up 31.52% year-on-year. The growth is attributed to the stable operation of classic games and the successful launch of overseas versions of new games [1]. - The company has a rich pipeline of games, with several titles based on popular IPs expected to launch soon, which is anticipated to drive future growth [1]. - The company has established a stable dividend distribution rhythm, reflecting long-term investment value and management confidence in future development [1]. Financial Summary - For the first three quarters of 2024, the company reported revenue of 3.928 billion yuan, a year-on-year increase of 29.65%, and a net profit of 1.280 billion yuan, up 18.27% year-on-year. The net profit after deducting non-recurring items was 1.281 billion yuan, representing a growth of 23.43% [1]. - The revenue projections for 2024 to 2026 are 5.385 billion yuan, 6.314 billion yuan, and 7.200 billion yuan, with corresponding growth rates of 25.37%, 17.25%, and 14.03% respectively. Net profits are projected to be 1.735 billion yuan, 2.064 billion yuan, and 2.322 billion yuan, with growth rates of 18.72%, 18.95%, and 12.51% respectively [3][4].