Giant Network(SZ:002558) Soochow Securities·2024-05-01 05:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a revenue of 2.924 billion yuan in 2023, a year-on-year increase of 43.50%, and a net profit attributable to shareholders of 1.086 billion yuan, up 27.67% year-on-year [2][3] - The strong growth in revenue and net profit is driven by the successful launch of new games and the stable performance of existing titles [3] - The company is actively exploring AI applications across various aspects of game development and operations, which is expected to enhance productivity and reduce costs [3] Financial Performance Summary - Total revenue (in million yuan) for 2023 was 2,924, with a year-on-year growth of 43.50% [2] - Net profit attributable to shareholders (in million yuan) for 2023 was 1,086.44, reflecting a year-on-year increase of 27.67% [2] - The company plans to distribute a cash dividend of 0.80 yuan per 10 shares to all shareholders [2] - The new game "Original Journey" launched on March 24, 2023, contributed significantly to revenue, generating over 1.5 billion yuan in its first year [3] - The average ranking of "Original Journey" on the iOS game sales chart was 19, 37, 44, 57, and 54 from Q2 2023 to April 2024 [2][3] Future Outlook - The company has completed initial layouts for mini-programs to strengthen its competitive edge in the "Journey" series, with plans for further promotion in 2024 [3] - The casual competitive game "Space Kill" has shown promising growth, with domestic DAU exceeding 2.5 million by the end of 2023 [3] - The company is expected to continue exploring new game genres and leveraging AI technologies to enhance its offerings and operational efficiency [3] Earnings Forecast - The report projects EPS for 2024, 2025, and 2026 to be 0.77, 0.88, and 0.95 yuan respectively, with corresponding P/E ratios of 15, 13, and 12 [2][3]