Giant Network(002558) Changjiang Securities·2025-04-29 10:14Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Insights - The company achieved a revenue of 2.923 billion yuan in 2024, a slight decrease of 0.05% year-on-year, while the net profit attributable to the parent company was 1.425 billion yuan, an increase of 31.15% year-on-year [2][5] - The company's core products performed steadily, with significant growth in the mini-game business, particularly from the "Original Journey" mini-program [2][7] - The company is actively advancing several new game reserves and has implemented a comprehensive layout of games combined with AI technology [7] Financial Performance - In Q4 2024, the company reported a revenue of 704 million yuan, representing a year-on-year increase of 7.23% but a quarter-on-quarter decrease of 10.97% [2][5] - The net profit for Q4 2024 was 354 million yuan, showing a remarkable year-on-year increase of 21,776% and a slight quarter-on-quarter increase of 0.28% [2][5] - The company’s non-recurring net profit for Q4 2024 was 349 million yuan, up 35.96% year-on-year but down 10.58% quarter-on-quarter [2][5] Product and Market Development - The "Original Journey" mini-program significantly contributed to revenue growth, with over 25 million new users since its launch in February 2024, generating 600 million yuan in revenue for the year [12] - The casual competitive game "Ball Battle" saw a notable increase in revenue, with core user retention reaching a new high and monthly revenue hitting a five-year peak [12] - The overseas version of "Space Kill," titled "SuperSus," achieved record revenue growth of over 50% year-on-year in 2024 [12] Future Outlook - The company plans to launch several new games in 2025, including "Supernatural Action Group" and historical SLG game "Five Thousand Years," which have already obtained approval for release [12] - The integration of AI technology in gaming is a key focus, with "Space Kill" being one of the first games to utilize AI-driven gameplay [12] - The company expects to see a significant increase in deferred revenue, with contract liabilities rising to 634 million yuan by the end of 2024 [12] Earnings Forecast - The company is projected to achieve net profits of 1.62 billion yuan and 1.82 billion yuan in 2025 and 2026, respectively, corresponding to PE ratios of 16.5 and 14.7 times [12]