KINGNET(SZ:002517) Soochow Securities·2024-05-01 13:07Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's revenue for 2023 reached 4.295 billion yuan, a year-on-year increase of 15.30%, with a net profit attributable to shareholders of 1.462 billion yuan, up 42.57% year-on-year, indicating that performance met expectations [2][3] - The strong growth in revenue and profit is driven by both new and existing games, with successful titles such as "Original Legend" and "New Legend of the Condor Heroes" contributing significantly [3] - The company has a robust pipeline of upcoming games, which is expected to sustain steady growth in performance [3] - The company is enhancing its research and operational capabilities, with a focus on AI applications to improve efficiency [3] Financial Performance Summary - Total revenue (in million yuan) for 2022A was 3,726, with projections for 2023A at 4,295, 2024E at 5,408, 2025E at 6,027, and 2026E at 6,576, reflecting a growth rate of 56.84%, 15.30%, 25.91%, 11.43%, and 9.12% respectively [2][4] - Net profit attributable to shareholders (in million yuan) for 2022A was 1,025, with projections for 2023A at 1,462, 2024E at 1,814, 2025E at 2,082, and 2026E at 2,324, showing growth rates of 77.77%, 42.57%, 24.10%, 14.78%, and 11.63% respectively [2][4] - The latest diluted EPS is projected to be 0.68 for 2024E, 0.84 for 2025E, and 0.97 for 2026E, with corresponding P/E ratios of 14, 12, and 11 [4] Market Data - The closing price of the stock is 11.79 yuan, with a market capitalization of 25.378 billion yuan [5] - The company has a price-to-book ratio of 4.47 [5] Cash Flow Summary - Operating cash flow for 2023A is projected at 1.706 billion yuan, with expectations of 2.207 billion yuan for 2024E and 2.319 billion yuan for 2025E [9] - The net increase in cash for 2023A is 269 million yuan, with projections of 1.507 billion yuan for 2024E [9]