Giant Network(SZ:002558) Guoyuan Securities·2025-10-30 10:51Investment Rating - The report maintains a "Buy" rating for the company, with expected EPS for 2025-2027 at 1.16, 1.84, and 2.11 CNY respectively, and corresponding PE ratios of 31, 19, and 17x [3] Core Insights - The company reported a stable growth in revenue and profit, with a significant year-on-year increase in revenue of 51.84% to 3.368 billion CNY and a net profit increase of 32.31% to 1.417 billion CNY for the first three quarters of 2025 [1] - The game "Supernatural Action Team" has shown strong performance, with a peak of over 1 million concurrent users and significant revenue growth driven by new content and collaborations with popular IPs [2] - The company has adjusted its game revenue deferral cycle, leading to an increase in contract liabilities to 1.333 billion CNY by the end of Q3 2025, reflecting a strategic shift in revenue recognition [1] Financial Performance Summary - For Q3 2025, the company achieved a revenue of 1.706 billion CNY, representing a year-on-year increase of 115.63%, and a net profit of 640 million CNY, up 81.19% [1] - The expense ratios for sales, management, and R&D for the first three quarters of 2025 were 36.23%, 4.78%, and 21.27% respectively, with sales expenses increasing due to higher advertising and channel costs [1] - The company’s financial forecasts indicate a revenue of 5.211 billion CNY for 2025, with a year-on-year growth of 78.30% [5]