KINGNET(SZ:002517) Tai Ping Yang·2024-05-05 02:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 17.00 CNY per share, compared to the last closing price of 11.74 CNY [1]. Core Views - The company achieved a revenue of 4.295 billion CNY in 2023, representing a year-on-year growth of 15.30%. The net profit attributable to shareholders was 1.462 billion CNY, up 42.57% year-on-year. In Q1 2024, the company reported a revenue of 1.308 billion CNY, a 36.93% increase year-on-year, with a net profit of 426 million CNY, reflecting a 47.06% growth [2]. - The company's performance is driven by stable operations of existing games and the successful launch of new titles. Notable games include "Stone Age: Awakening" and "The Legend of Sword and Fairy: A New Beginning," which have performed well in sales rankings [2][3]. - The company has a rich pipeline of games, with several titles expected to launch in 2024, including "Douluo Dalu: The Legend of the Soul" and "That Time I Got Reincarnated as a Slime: New World," which have already received approval [2][3]. Financial Summary - The company is projected to achieve revenues of 5.215 billion CNY, 6.155 billion CNY, and 7.146 billion CNY for 2024, 2025, and 2026, respectively, with corresponding growth rates of 21.40%, 18.03%, and 16.10%. The net profit attributable to shareholders is expected to be 1.831 billion CNY, 2.078 billion CNY, and 2.347 billion CNY for the same years, with growth rates of 25.25%, 13.53%, and 12.94% [4][5]. - The company has implemented a stable dividend distribution plan, with a total dividend amount of approximately 213 million CNY for 2023 and an expected 200 million CNY for 2024, indicating a commitment to returning value to shareholders [3][4].