KINGNET(002517) 天风证券·2025-01-12 10:11Investment Rating - The report maintains a "Buy" rating for the company, with a 6-month target price of 12.88 RMB [6] Core Views - The company plans to change the use of repurchased shares from employee incentives to cancellation, which will enhance shareholder returns by increasing EPS by approximately 0.75% [1] - The company has demonstrated a strong commitment to investor returns through dividends, share repurchases, and management share purchases [2] - The company's performance is expected to grow steadily, with a rich pipeline of games set to be released in 2025, and AI applications showing promising potential [3][4] Financial Performance and Projections - The company's revenue for the first three quarters of 2024 increased by 30% YoY, with net profit attributable to the parent company growing by 18% [3] - The company's 2024-2026 forecasted net profit attributable to the parent company is adjusted to 1.73/2.05/2.39 billion RMB, with YoY growth rates of 19%/18%/16% respectively [4] - The company's 2024-2026 forecasted EPS is 0.81/0.95/1.11 RMB, with corresponding P/E ratios of 16/14/12 times [4] Product Pipeline and AI Applications - The company has a rich pipeline of games set to be released in 2025, including titles such as "The Legend of Mir 2," "Dragon Nest World," and "Code: Red Moon" [3] - The company's self-developed "Xingyi" large model has been applied in actual R&D scenarios, significantly improving development efficiency in animation and scene production [4] - The company's investment in Ultimate Illusion has led to the release of a 3D AI companion product "EVE" [4] Shareholder Returns and Management Commitment - The company has consistently paid semi-annual dividends of 210 million RMB in 2023 and 2024 [2] - The company repurchased 16.07 million shares for approximately 200 million RMB in the second half of 2023 [2] - The company's chairman and senior management have committed to not reducing their holdings for the next 5 years and will use post-tax dividends to continue purchasing shares [2] Financial Data and Valuation - The company's 2024-2026 forecasted revenue is 5.44/6.36/7.29 billion RMB, with YoY growth rates of 26.63%/16.89%/14.62% [5] - The company's 2024-2026 forecasted EBITDA is 1.87/2.20/2.54 billion RMB [5] - The company's 2024-2026 forecasted P/B ratios are 2.74/2.13/1.70 times [5]