KINGNET(SZ:002517) Guoxin Securities·2024-11-04 09:00Investment Rating - The report maintains an "Outperform the Market" rating for the company [6][4]. Core Views - The company has shown steady revenue growth, with a reported revenue of 3.927 billion yuan and a net profit of 1.280 billion yuan for the first three quarters of 2024, representing year-on-year increases of 29.65% and 18.27% respectively [1][4]. - The product portfolio is robust, featuring both nostalgic and innovative games, with significant performance in overseas markets, particularly a 334.95% year-on-year increase in overseas revenue [2][10]. - The company is expanding its IP matrix, with numerous well-known IPs and a rich product pipeline, including several games that have recently launched or are in development [3][11]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 1.372 billion yuan and a net profit of 471 million yuan, with year-on-year growth rates of 30.33% and 31.52% respectively [1][4]. - The full-year profit forecasts for 2024, 2025, and 2026 are 1.984 billion yuan, 2.364 billion yuan, and 2.633 billion yuan, respectively, with corresponding EPS of 0.92, 1.10, and 1.22 yuan [4][12]. Product Portfolio - The company’s product lineup includes popular nostalgic games such as "Original Legend" and "Blood of the Heroes," which have established competitive barriers [2][10]. - Innovative titles like "Gundam Battle" and "Nasirak King" have performed well, with "Nasirak King" reaching the second position on the free charts shortly after its launch [2][10]. Overseas Expansion - The company reported overseas revenue of 126 million yuan in the first half of 2024, with plans to release several titles in markets such as Singapore, Malaysia, and Vietnam [2][10]. - The overseas business is expected to continue its high growth trajectory, supported by strategic releases in various international markets [2][10]. IP Development - The company has accumulated a diverse range of IPs, including "Legendary World" and "Overlord," and is focusing on nurturing original IPs like "Seasonal Order," which has received national support [3][11]. - Several new games have received approval for release, and key products are set to launch in Q4 2024, laying a solid foundation for future performance [3][11].