Core Insights - The return of founder Shi Yuzhu has revitalized Giant Network's growth trajectory, with significant announcements and personnel changes indicating a strategic shift towards nurturing young talent [2][3][4] Management Changes - CEO Zhang Dong resigned for personal reasons, and Liu Wei, a board member, has been appointed as the new CEO and General Manager, focusing on developing young core talent [2][4] - Liu Wei previously served as CEO from April 2016 to December 2023 and is expected to bring a fresh perspective to the leadership [3][4] Financial Performance - In Q3, Giant Network reported revenue of 1.706 billion yuan, a year-on-year increase of 115.63%, and a net profit of 640 million yuan, up 81.19% [2][7] - For the first three quarters of the year, total revenue reached 3.368 billion yuan, reflecting a 51.84% increase, while net profit grew by 32.31% to 1.417 billion yuan [7] Product Success - The self-developed game "Supernatural Action Group" has become a phenomenon, significantly contributing to the company's Q3 performance and showcasing the effectiveness of a young development team [2][6][7] - The game achieved a revenue increase of 800 million yuan in August alone, marking a 106% month-on-month growth, and reached a peak of 1.1 billion yuan in total revenue [6][7] Market Position and Future Outlook - The success of "Supernatural Action Group" has positioned Giant Network favorably in the market, with its stock price doubling since the beginning of the year, closing at 37.92 yuan per share [8] - Analysts express optimism about the game's potential for further growth, particularly with upcoming seasonal updates and the possibility of expanding its player base [8]

Core Insights - The chairman of Giant Network, Shi Yuzhu, expressed satisfaction with the growth in player numbers for the "Journey" IP, which has outpaced revenue growth over the past two years, indicating the team is on the right track [2] - Shi emphasized the importance of focusing on player experience rather than just revenue, highlighting three key aspects for future development: being engaging, enjoyable, and sustainable [2] - The company aims to enhance its appeal to younger players by adjusting art styles, simplifying gameplay, and improving communication regarding game rules and features [2] Company Strategy - Shi Yuzhu rated the team's performance at 80 out of 100, indicating a strong foundation but recognizing the need for further improvement in game enjoyment [2] - The company plans to prioritize the development of games that not only last for 20 years but also thrive, with expectations for significant improvements in gameplay and player growth in the coming years [2] - Future game versions and products will involve direct player feedback, with Shi committing to engage with the games personally to understand player opinions [2]

Investment Rating - The industry rating is "Outperform the Market" indicating that the overall return of the industry is expected to exceed the market benchmark index by more than 5% in the next 6 months [15]. Core Insights - In May, both domestic and imported game licenses were issued normally, with 130 domestic games and 14 imported games receiving approval [2][3]. - Notable game releases include Giant Network's "Supernatural Action Group," which has seen a rapid increase in rankings since its launch, reaching 33rd in the sales chart by May 30 [4][5]. - Jibite's "Sword Legend," featuring a Q-version art style, has resonated well with younger audiences, achieving a sales ranking of 12 by June 4 after its launch on May 29 [6]. - Perfect World’s "Yihuan" has garnered significant attention, with nearly 5.4 million views on its recruitment video by June 4 [7]. Company Summaries - **Giant Network**: "Supernatural Action Group" launched a million incentive plan, leading to a significant rise in its sales ranking [5]. - **Jibite**: "Sword Legend" targets young players with its appealing art style and has quickly climbed the sales rankings [6]. - **Perfect World**: "Yihuan" has high engagement metrics, indicating strong market interest ahead of its testing phase [7]. - **Investment Suggestions**: The report recommends focusing on companies such as Jibite, Baotong Technology, Shenzhou Taiyue, Giant Network, Yaoji Technology, Shengtian Network, Xinghui Entertainment, Perfect World, and Zhangqu Technology for potential investment opportunities [7].