Giant Network(SZ:002558) KAIYUAN SECURITIES·2025-10-30 07:45Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company achieved a revenue of 3.368 billion yuan in the first three quarters of 2025, representing a year-on-year increase of 51.84%. The net profit attributable to shareholders was 1.417 billion yuan, up 32.31% year-on-year. The third quarter revenue reached 1.706 billion yuan, showing a year-on-year growth of 115.6% and a quarter-on-quarter increase of 81.8%. The strong performance is primarily driven by the game "Supernatural Action Group" [4][5] - The gross margin for the first three quarters of 2025 was 90.6%, an increase of 1.7 percentage points year-on-year, while the net profit margin was 42.5%, down 6.1 percentage points year-on-year due to increased sales expenses from new game launches [4] - The company’s contract liabilities reached 1.333 billion yuan by the end of Q3, a significant increase of 172% year-on-year and 50% quarter-on-quarter, indicating a potential acceleration in revenue recognition in Q4 [4] - The forecast for net profit attributable to shareholders for 2025-2027 has been raised to 2.415 billion, 3.772 billion, and 4.607 billion yuan respectively, with corresponding price-to-earnings ratios of 30.4, 19.5, and 15.9 times [4] Financial Summary - For 2025, the estimated revenue is 5.205 billion yuan, with a year-on-year growth of 78.1%. The estimated net profit attributable to shareholders is 2.415 billion yuan, reflecting a year-on-year increase of 69.5% [7] - The gross margin is projected to be 90.7% in 2025, with a net profit margin of 46.4% [7] - The company’s return on equity (ROE) is expected to reach 16.1% in 2025, increasing to 20.4% by 2026 [7] Game Performance and Potential - "Supernatural Action Group" has shown strong user engagement, with monthly active users reaching 795,000 in August 2025. The game has consistently ranked high in the iOS game sales charts, indicating a solid player base [5] - The upcoming game "Ming Jiang Sha" is expected to launch in the first half of 2026 and has received high ratings, suggesting strong potential for user engagement [6] - The company is continuously refining its game offerings, with multiple new games set to launch, which are anticipated to drive sustained revenue growth [6]