Giant Network(SZ:002558) KAIYUAN SECURITIES·2025-08-29 14:13Investment Rating - The investment rating for the company is "Buy" (maintained) [1][4][12] Core Views - The company achieved a significant quarter-on-quarter revenue increase in Q2, driven by new game releases, indicating strong performance momentum [4][5] - The company's H1 revenue reached 1.662 billion yuan, a year-on-year increase of 16.47%, with a net profit of 777 million yuan, up 8.27% year-on-year [4] - The contract liabilities reached 889 million yuan by the end of Q2, reflecting a 79% year-on-year increase, indicating ongoing strong game performance [4][5] Financial Summary - For 2025, the company is projected to achieve a net profit of 2.293 billion yuan, with a year-on-year growth of 60.9% [4][9] - The revenue forecast for 2025 is set at 4.688 billion yuan, representing a 60.4% increase compared to the previous year [4][9] - The company's gross margin is expected to be 90.5% in 2025, with a net margin of 48.9% [9] Game Performance - The game "Supernatural Action Group" has shown exponential growth in user scale and revenue, ranking in the top 5 of iOS free games and top 4 in iOS revenue charts [5][6] - The game "Original Journey" has expanded its user base significantly, with over 20 million new users in the first half of the year [5] AI Integration - The company is exploring AI integration in gaming, enhancing user engagement and driving revenue growth through innovative gameplay [6]