Giant Network(SZ:002558) GOLDEN SUN SECURITIES·2024-04-30 10:32Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Insights - The company achieved significant revenue growth in 2023, with total revenue reaching 2.924 billion yuan, a year-on-year increase of 43.5%. The net profit attributable to shareholders was 1.086 billion yuan, up 27.67% year-on-year [1][2]. - The launch of the flagship mobile game "Original Journey" under the Journey IP has driven user growth, generating over 300 million yuan in its first month and exceeding 1.5 billion yuan in total revenue for the year [1]. - The company has successfully implemented AI tools across various business functions, significantly reducing research and operational costs [2]. Financial Performance Summary - Revenue: - 2022: 2.038 billion yuan - 2023: 2.924 billion yuan (43.5% growth) - 2024E: 3.480 billion yuan (19.0% growth) [3] - Net Profit: - 2022: 851 million yuan - 2023: 1.086 billion yuan (27.7% growth) - 2024E: 1.537 billion yuan (41.5% growth) [3] - Earnings Per Share (EPS): - 2022: 0.43 yuan - 2023: 0.55 yuan - 2024E: 0.78 yuan [3] - Price-to-Earnings (P/E) Ratio: - 2023: 21.3 - 2024E: 15.0 - 2025E: 13.3 [3] Business Segments Overview - Journey IP Segment: - The flagship mobile game "Original Journey" has shown strong performance, with over 15 million new users and continuous updates planned for 2024 [1]. - Casual Competitive Segment: - The game "Ball Battle" has undergone a comprehensive upgrade, resulting in a significant increase in daily active users (DAU) and revenue. The game "Space Kill" has also gained traction in international markets, with over 1 million DAU [1][2]. Profit Forecast - The company is expected to achieve net profits of 1.537 billion yuan in 2024, 1.736 billion yuan in 2025, and 1.905 billion yuan in 2026, with corresponding year-on-year growth rates of 41.5%, 12.9%, and 9.8% respectively [2].