KINGNET(SZ:002517) Tebon Securities·2024-02-17 16:00Investment Rating - The report maintains a "Buy" rating for the company, Kaiying Network (002517.SZ) [1] Core Views - The company is expected to achieve a net profit of 1.3 billion to 1.7 billion yuan in 2023, representing a year-on-year growth of 26.81% to 65.83%. The non-net profit is projected to be 1.17 billion to 1.61 billion yuan, with a growth of 22.39% to 68.41% [4] - The strong product pipeline supports performance growth, with existing products like "Original Legend" and "World of Legend" performing well, alongside new launches such as "King of Nasalick" and "Stone Age: Awakening" [4] - The mini-game sector is driving growth, with titles like "New Beginning" and "Monster League" achieving significant rankings in the WeChat mini-game sales charts [4] Summary by Sections Financial Performance - The company forecasts revenues of 4.35 billion yuan in 2024 and 6.39 billion yuan in 2025, with year-on-year growth rates of 22.1% and 20.4% respectively [5] - The projected net profit for 2024 is 1.75 billion yuan, growing by 19.8% year-on-year, and for 2025, it is expected to reach 1.98 billion yuan, with a growth of 13.3% [5][6] Product Development - The company has a robust pipeline of games, including several that have already received approval for release, which are expected to contribute to revenue growth in 2024 [4] - The company is also exploring new directions in VR content, having invested in leading VR firms and launched a MOBA-style VR game [5] Corporate Governance - The company has announced a series of buyback and shareholding increase plans, with the chairman planning to invest at least 20 million yuan, which is expected to boost investor confidence [5]