KINGNET(SZ:002517)2024-10-31 14:47Investment Rating - The report maintains a "Buy" rating for the company [1][3] - The market price is reported at RMB 13.47, with a sector rating of "Outperform" [1] Core Insights - The company has shown robust revenue growth, with Q3 2024 revenue reaching RMB 1.372 billion, a year-on-year increase of 30.33%, and a net profit of RMB 471 million, up 31.52% year-on-year [3] - Several major products are in the testing phase, and the company is successfully advancing its overseas business [3] - The company has a rich pipeline of upcoming products and has made significant progress in securing IP licenses for new games [3] Financial Performance Summary - Q3 2024 revenue was RMB 1.372 billion, with a gross profit margin of 82.59%, slightly down by 1.07 percentage points year-on-year [3][4] - The sales expense ratio increased to 30.79%, while the management expense ratio decreased to 3.34% [3][4] - The company has adjusted its net profit forecasts for 2024, 2025, and 2026 to RMB 1.741 billion, RMB 2.111 billion, and RMB 2.547 billion respectively, with corresponding P/E ratios of 16.43, 13.55, and 11.23 [3][4] Product Pipeline and Market Position - The company has multiple high-profile games entering the testing phase, including "Douluo Dalu: Zhu Xie Chuan Shuo" and "Tomb Raider: Start" [3] - The company has successfully launched several games in overseas markets, achieving top rankings in app stores [3] - The company is exploring new technologies and has a strong IP reserve, including licenses for popular franchises [3]