KINGNET(SZ:002517) Huajin Securities·2025-10-30 12:41Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company is leveraging AI and IP to create an ecological matrix that drives stable revenue growth through multi-level optimization [5] - The company has shown strong performance in its gaming segment, with a focus on expanding its product matrix through AI and IP integration [5] Financial Data and Valuation - Projected revenue for 2023 is 4,295 million, with a year-on-year growth of 15.3%. Revenue is expected to reach 5,118 million in 2024, 6,164 million in 2025, 7,182 million in 2026, and 8,350 million in 2027 [3][6] - Projected net profit for 2023 is 1,462 million, with a year-on-year growth of 42.6%. Net profit is expected to be 1,628 million in 2024, 2,157 million in 2025, 2,565 million in 2026, and 3,102 million in 2027 [3][6] - The gross margin is projected to be 83.5% in 2023, gradually decreasing to 81.7% by 2027 [3][6] - The company’s P/E ratio is expected to decrease from 34.4 in 2023 to 16.2 in 2027, indicating an improving valuation over time [3][6] Recent Performance - In the first three quarters of 2025, the company achieved a revenue of 40.75 billion, a year-on-year increase of 3.75%, and a net profit of 15.83 billion, up 23.70% year-on-year [5] - The company reported a significant increase in net profit for Q3 2025, reaching 6.33 billion, which is a 34.51% increase year-on-year [5] Strategic Initiatives - The company is expanding its product offerings with new game releases and AI applications, including the AI game development platform "SOON" and various IP-based mobile games [5] - The "Legendary Box" initiative aims to transform the company from a single product competitor to an ecological operator, enhancing its market position [5]