Giant Network(SZ:002558) Western Securities·2025-08-28 12:55Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return that exceeds the market benchmark by over 20% in the next 6-12 months [4][8]. Core Insights - The company reported a revenue of 1.662 billion yuan for the first half of 2025, representing a year-over-year increase of 16.47%, and a net profit attributable to shareholders of 777 million yuan, up 8.27% year-over-year [1][4]. - The flagship mobile game "Original Journey" has seen significant user growth, with 5.86 million new users in its first month and over 20 million new users in the first half of 2025 [1][2]. - The game "Supernatural Action Group" has exceeded expectations, achieving a peak of over 1 million concurrent users and ranking in the top 4 of the iOS game sales chart [2]. Financial Performance - In Q2 2025, the company achieved a revenue of 938 million yuan, a year-over-year increase of 28.42%, and a net profit of 429 million yuan, up 17.49% year-over-year [1][4]. - The report forecasts net profits for 2025, 2026, and 2027 to be 2.289 billion yuan, 3.088 billion yuan, and 3.631 billion yuan respectively, with year-over-year growth rates of 60.6%, 34.9%, and 17.6% [2][3]. User Engagement and Innovation - The company has successfully integrated AI into its gaming experience, enhancing user interaction and engagement through innovative gameplay mechanics [2]. - The game "Original Journey" has fully integrated AI NPCs, improving user experience through strategic assistance and emotional companionship [2]. Market Position and Future Outlook - The company is well-positioned in the gaming industry, with a strong pipeline of new products and ongoing user engagement strategies [2][3]. - The report emphasizes the importance of monitoring the commercial performance of new titles, particularly "Supernatural Action Group," as user growth continues to accelerate [2].