Giant Network(002558)2024-11-04 07:41Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company's Q3 performance was strong, with revenue of 790 million yuan, a year-over-year decrease of 4%, and a net profit attributable to shareholders of 350 million yuan, down 16% year-over-year. However, these figures exceeded market expectations [4]. - The "Wangzhe Zhengtu" game has successfully supported the overall performance of the Zhengtu IP, with revenue increasing for three consecutive quarters. Despite a decline in revenue from "Yuan Shi Zhengtu," the newly launched "Wangzhe Zhengtu" mini-game has shown strong growth [4][5]. - The company is expanding its mid-term pipeline with high certainty, including new projects led by different teams, and is actively implementing AI technologies to enhance development efficiency [5][6]. Financial Data and Profit Forecast - The company reported total revenue of 2,924 million yuan in 2023, with projected revenues of 3,032 million yuan in 2024, 3,454 million yuan in 2025, and 4,175 million yuan in 2026 [8]. - The net profit attributable to shareholders is expected to be 1,401 million yuan in 2024, 1,629 million yuan in 2025, and 1,808 million yuan in 2026, reflecting a year-over-year growth of 29% in 2024 [6][8]. - The company's price-to-earnings ratio (PE) is projected to be 17x in 2024, 14x in 2025, and 13x in 2026, indicating a relatively low valuation compared to historical levels [6].