KINGNET(SZ:002517) HTSC·2025-07-01 06:21Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 28.65, up from the previous value of RMB 23.88 [5][7]. Core Insights - The company is advancing its AI technology and IP ecosystem, launching the SOON AI game development platform and various AI products, including emotional technology and AR hardware [1][3]. - The AI companion application "EVE" has received positive feedback during its internal testing, indicating strong potential in the emotional support sector [2]. - The company is deepening its IP ecosystem, focusing on traditional culture and digital assets, with strategic initiatives to promote Chinese culture globally [4]. Summary by Sections AI Technology and Product Development - The company introduced the SOON platform for automated game development, significantly reducing artistic barriers and time costs, with strategic investments from major groups [3]. - The AI toy brand "Warm Star Valley Dream Journey" is set to launch in 2025, featuring toys with emotional recognition capabilities [3]. IP Development and Cultural Initiatives - The traditional cultural IP "Baigongling" is celebrating its third anniversary, revitalizing traditional crafts through various media [4]. - The innovative national style IP "Suishiling" will implement a three-pronged strategy of short dramas, cultural tourism, and international expansion in 2025 [4]. Financial Projections - The company forecasts net profits of RMB 2.04 billion, RMB 2.41 billion, and RMB 2.73 billion for 2025, 2026, and 2027 respectively, with a projected PE ratio of 30X for 2025 [5][11].