Giant Network(002558) Tai Ping Yang·2024-11-04 02:18Investment Rating - The report assigns an "Accumulate" rating to the company, indicating a positive outlook for the stock in the near term [1][2]. Core Insights - The company achieved a revenue of 2.218 billion yuan in the first three quarters of 2024, a year-on-year decrease of 2.15%, while the net profit attributable to shareholders was 1.071 billion yuan, down 1.29% year-on-year [1]. - The company is focusing on the mini-game sector, with a quarter-on-quarter revenue growth of 8.28% in Q3 2024, driven by stable operations of mature products and the success of mini-games [1]. - The company is actively integrating AI into its gaming offerings, enhancing user experience and gameplay innovation through various AI-driven platforms and models [1]. - The company has implemented a cash dividend policy, distributing 1.4 yuan per 10 shares, totaling approximately 265 million yuan, which represents 31.92% of the net profit attributable to shareholders for the first three quarters [1]. Financial Summary - Revenue projections for 2024-2026 are 3.054 billion, 3.323 billion, and 3.616 billion yuan, with corresponding growth rates of 4.42%, 8.82%, and 8.83% [2][4]. - The net profit attributable to shareholders is forecasted to be 1.428 billion, 1.581 billion, and 1.752 billion yuan for the same period, with growth rates of 31.47%, 10.69%, and 10.84% respectively [2][4]. - The diluted earnings per share are expected to increase from 0.56 yuan in 2023 to 0.91 yuan in 2026 [4].