Giant Network(SZ:002558) CMS·2025-09-02 04:32Investment Rating - The report maintains a "Strong Buy" investment rating for the company [2][5]. Core Insights - The company reported a revenue of 1.662 billion RMB for the first half of 2025, representing a year-on-year growth of 16.47%, and a net profit of 777 million RMB, up 8.27% year-on-year. In Q2 alone, revenue reached 938 million RMB, with a growth of 28.42%, and net profit was 429 million RMB, growing by 17.49% year-on-year [1][5]. - The company has a robust pipeline of new games, with the self-developed game "Supernatural Action Team" showing rapid user and revenue growth since its launch, although its main contributions will be recognized in future reporting periods due to revenue deferral [5]. - The flagship mobile game "Original Journey" has performed excellently, with a significant increase in user base and stable monthly revenue of 100 million RMB. The company also continues to innovate in the casual gaming sector [5]. - The company is actively embracing AI technology, collaborating with major firms to enhance gaming experiences and user engagement [5]. Financial Performance - The company’s total revenue is projected to reach 4.413 billion RMB in 2025, with a year-on-year growth of 51%. The net profit is expected to be 2.056 billion RMB, reflecting a growth of 44% [6][9]. - The company’s financial ratios indicate a healthy growth trajectory, with a projected PE ratio of 29.4 for 2025, decreasing to 16.3 by 2027 [9][6]. - The company’s cash flow from operating activities is expected to improve significantly, reaching 2.796 billion RMB by 2027 [7]. Market Position - The company has a total market capitalization of 6.04 billion RMB, with a strong return on equity (ROE) of 10.6% [2][5]. - The company’s debt levels are low, with an asset-liability ratio of 13.4%, indicating strong financial stability [2][9].