Core Viewpoint - Giant Network is a leading internet gaming company in China, with strong revenue and profit performance in the industry, showcasing robust financial health and growth potential [2][3][6][7]. Group 1: Business Performance - In Q3 2025, Giant Network reported revenue of 3.368 billion yuan, ranking 8th in the industry, with the top competitor, ST Huatong, at 27.223 billion yuan [2]. - The net profit for the same period was 1.431 billion yuan, placing the company 5th in the industry, with ST Huatong leading at 4.442 billion yuan [2]. - The company's contract liabilities surged to 1.333 billion yuan, a 49.9% increase quarter-on-quarter, indicating strong future performance support [6]. Group 2: Financial Health - As of Q3 2025, the asset-liability ratio was 16.40%, significantly lower than the industry average of 29.04%, reflecting strong solvency [3]. - The gross profit margin stood at 90.62%, higher than the industry average of 58.35%, indicating robust profitability [3]. Group 3: Shareholder Information - As of September 30, 2025, the number of A-share shareholders increased by 21.47% to 61,000, while the average number of shares held per shareholder decreased by 17.67% to 31,700 shares [5]. - Major shareholders include Hong Kong Central Clearing Limited and various ETFs, with notable increases in holdings [5]. Group 4: Product and Market Developments - The new self-developed game "Supernatural Action Team" saw a revenue increase, ranking 10th in iOS mobile game revenue in China [6]. - The "Journey" IP series continues to perform well, with the mini-game version achieving over 20 million users [7]. - The company is actively integrating AI into its games, enhancing user engagement and gameplay experience [6][7].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company achieved a revenue of 3.368 billion yuan in the first three quarters of 2025, representing a year-on-year increase of 51.84%. The net profit attributable to shareholders was 1.417 billion yuan, up 32.31% year-on-year. The third quarter revenue reached 1.706 billion yuan, showing a year-on-year growth of 115.6% and a quarter-on-quarter increase of 81.8%. The strong performance is primarily driven by the game "Supernatural Action Group" [4][5] - The gross margin for the first three quarters of 2025 was 90.6%, an increase of 1.7 percentage points year-on-year, while the net profit margin was 42.5%, down 6.1 percentage points year-on-year due to increased sales expenses from new game launches [4] - The company’s contract liabilities reached 1.333 billion yuan by the end of Q3, a significant increase of 172% year-on-year and 50% quarter-on-quarter, indicating a potential acceleration in revenue recognition in Q4 [4] - The forecast for net profit attributable to shareholders for 2025-2027 has been raised to 2.415 billion, 3.772 billion, and 4.607 billion yuan respectively, with corresponding price-to-earnings ratios of 30.4, 19.5, and 15.9 times [4] Financial Summary - For 2025, the estimated revenue is 5.205 billion yuan, with a year-on-year growth of 78.1%. The estimated net profit attributable to shareholders is 2.415 billion yuan, reflecting a year-on-year increase of 69.5% [7] - The gross margin is projected to be 90.7% in 2025, with a net profit margin of 46.4% [7] - The company’s return on equity (ROE) is expected to reach 16.1% in 2025, increasing to 20.4% by 2026 [7] Game Performance and Potential - "Supernatural Action Group" has shown strong user engagement, with monthly active users reaching 795,000 in August 2025. The game has consistently ranked high in the iOS game sales charts, indicating a solid player base [5] - The upcoming game "Ming Jiang Sha" is expected to launch in the first half of 2026 and has received high ratings, suggesting strong potential for user engagement [6] - The company is continuously refining its game offerings, with multiple new games set to launch, which are anticipated to drive sustained revenue growth [6]

Core Insights - The company reported a significant increase in revenue and profit for Q3 2025, with total revenue reaching 3.368 billion yuan, a year-on-year growth of 51.84%, and net profit attributable to shareholders at 1.417 billion yuan, up 32.31% [1] - The third quarter saw a remarkable revenue of 1.706 billion yuan, representing a year-on-year increase of 115.63% and a quarter-on-quarter growth of 81.83% [1] - The strong performance is attributed to the self-developed game "Supernatural Action Group," which launched in early 2025 and gained substantial user engagement and revenue, particularly from June onwards [1] Financial Performance - Key financial metrics include a gross margin of 90.62% for the first three quarters, an increase of 1.7 percentage points year-on-year, and a net profit margin of 42.48%, down 6.1 percentage points year-on-year, with Q3 net profit margin at 37.82% [1] - The sales expense ratio for the first three quarters was 36.23%, up 4.3 percentage points year-on-year, while the management expense ratio was 4.78%, down 1.5 percentage points year-on-year, and the R&D expense ratio was 21.27%, down 2.2 percentage points year-on-year [1] - As of the end of Q3, contract liabilities reached 1.333 billion yuan, a year-on-year increase of 172% and a quarter-on-quarter increase of 50%, primarily driven by pre-recharge revenue from "Supernatural Action Group" and "Original Journey" [1] Product and Market Strategy - The company demonstrates strong long-term operational capabilities, with the old IP "Journey" series maintaining stable performance, particularly the flagship mobile game "Original Journey," which has achieved an average monthly revenue of 100 million yuan this year [2] - The new hit game "Supernatural Action Group" has shown significant profit contribution in Q3 and is in its growth phase, with potential for long-term success through continuous updates and overseas expansion [2] - Future product pipeline includes "Famous Generals Kill" (card strategy) expected to launch in early 2026 and "Five Thousand Years" (SLG) focusing on Chinese historical themes, which has undergone multiple tests this year [2] Investment Outlook - "Supernatural Action Group" is expected to be a key growth driver for the company in the medium to long term, with projected net profits of 2.272 billion yuan, 3.360 billion yuan, and 3.825 billion yuan for 2025-2027, corresponding to PE ratios of 32, 22, and 19 times respectively [3] - The company maintains a "recommended" rating based on its strong fundamentals and growth potential [3]

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 48.54 [1]. Core Insights - The company reported strong Q3 results with revenue of RMB 1.706 billion, a year-over-year increase of 115.63% and a quarter-over-quarter increase of 81.83%. The net profit attributable to shareholders was RMB 640 million, up 81.19% year-over-year and 49.07% quarter-over-quarter [1]. - The deferred revenue from the game "Supernatural" is expected to continue growing, alongside the company's ongoing AI game initiatives [1]. - The management has shifted focus towards attracting younger talent, which is anticipated to inject vitality into the company [2]. Revenue and Profitability - For the first three quarters of 2025, the company achieved a total revenue of RMB 3.368 billion, reflecting a year-over-year growth of 51.84%. The net profit attributable to shareholders was RMB 1.417 billion, up 32.31% year-over-year [1]. - The company’s Q3 gross margin was stable at 90.46%, with a slight increase of 0.64 percentage points. The sales expense ratio rose to 36.65%, an increase of 1.41 percentage points [4]. Product Development and Market Position - The company has a rich pipeline of new products, including the strategy card game "Ming Jiang Sha" and the SLG game "Five Thousand Years," which are expected to contribute to future revenue growth [3]. - Existing products like the "Journey" series and "Ball Battle" continue to perform well, with the latter expanding its user base through platforms like Douyin and WeChat [3]. Financial Forecast and Valuation - The net profit forecast for 2025 is maintained at RMB 2.26 billion, with upward adjustments for 2026 and 2027 to RMB 4.08 billion and RMB 5.07 billion, respectively [5]. - The target price has been adjusted to RMB 48.54, reflecting a 23X PE for 2026, based on the company's strong product performance and integration of AI [5].

Group 1 - Bilibili's game "Escape from Duckkov" has sold over 1 million copies globally in its first week since launch on October 16 [1] - The game achieved a peak concurrent online player count of over 250,000 on October 22, setting a record for domestic independent games [1] - The gaming industry is entering an innovation cycle of 2-3 years, driven by external factors like policy improvements and internal optimizations [1] Group 2 - Borye's cooperation with Bilibili is strong, with Bilibili's affiliate Shanghai Huandian holding an 11% stake in Borye's game subsidiary, Beijing Manyou Valley [2] - Giant Network is expected to see significant profit growth in Q3, largely due to the success of "Supernatural Action Team" [2] - Future growth potential exists in Giant Network's product line, particularly with historical SLG "Five Thousand Years" and casual competitive strategy game "Pocket Fighting" both having received approval for release [2]

Investment Rating - The report recommends a positive investment outlook for the technology sector, specifically highlighting key stocks in electronics, computing, communications, and media [5][10]. Core Insights - The report identifies several companies as "gold stocks" for October 2025, including Luxshare Precision, GigaDevice, Taxu Technology, Meitu, Zhongji Xuchuang, Runze Technology, Kaiying Network, and Giant Network [10][14]. - The analysis emphasizes the importance of AI-driven innovations and market trends, particularly in consumer electronics and data center infrastructure, which are expected to drive growth for the highlighted companies [16][20]. Summary by Category Electronics - **Luxshare Precision**: The company is positioned for steady growth due to its deep integration with core clients and advancements in new materials and technologies. It is capitalizing on the demand for AI computing and data center upgrades, with a focus on high-value products [16]. - **GigaDevice**: The company is experiencing a robust upward trend in its fundamentals, with all storage products in a price increase cycle. It is expanding its market share in NOR Flash and enhancing its product matrix in DRAM [17]. Computing - **Taxu Technology**: As a leader in the tax IT industry, the company is leveraging its dual-driven business model. It is expected to benefit from AI integration, enhancing its SaaS subscription model and expanding its market reach [18]. - **Meitu**: The company has successfully transitioned from a traffic-based model to a subscription model, leveraging its aesthetic expertise and technology to expand its user base and global market presence [19]. Communications - **Zhongji Xuchuang**: The company is a leading global player in optical modules, maintaining stable delivery capabilities through strong industry partnerships. It is advancing in cutting-edge technologies like silicon photonics [20]. - **Runze Technology**: Positioned as a leading third-party IDC and AIDC provider, the company is expected to benefit from the increasing investments in data centers by major internet firms [21]. Media - **Kaiying Network**: The company is set to launch several new games, which are anticipated to drive revenue growth. Its strong product pipeline and AI integration in gaming are expected to enhance user engagement [22]. - **Giant Network**: The company is witnessing significant growth in its gaming titles, with a focus on AI-driven gameplay innovations that are expected to increase user activity and revenue [22]. Profit Forecasts - The report provides earnings per share (EPS) and price-to-earnings (PE) ratios for the recommended stocks, indicating expected growth in EPS for 2024 to 2027 across various companies [23].

Core Viewpoint - The company reported steady revenue and profit growth in the first half of 2025, driven by the successful launch of new products and strong performance from existing product lines [1][2][3] Financial Performance - The company's revenue for the first half of 2025 reached 1.662 billion RMB, a year-on-year increase of 16.47% [1] - The net profit attributable to shareholders was 777 million RMB, up 8.27% year-on-year [1] - In Q2 2025, revenue was 938 million RMB, reflecting a 28.42% year-on-year growth, while net profit was 429 million RMB, increasing by 17.49% [1] - The company declared a cash dividend of 1.50 RMB per 10 shares [1] Product Performance - The flagship mobile game "Original Journey" successfully launched a mini-game version, adding 5.86 million new users in the first month and surpassing 20 million new users in the first half of the year [2] - The new casual game "Supernatural Action Group" launched on January 23, 2025, quickly gained user traction, reaching over 1 million concurrent users in July and ranking in the top 5 of the iOS free game chart [2] - The game "Ball Ball Battle" introduced a new gameplay mode in May, resulting in over 11 million new users in the first half of the year [2] - The company’s overseas game "Super Sus" maintained stable active user numbers, with significant revenue growth in the Indonesian market [2] Strategic Initiatives - The company is embracing AI technology, collaborating with Alibaba Cloud to develop AI agents and enhance gaming experiences [3] - The game "Space Kill" is set to introduce a new mode featuring mixed competition between users and AI agents in 2025 [3] - The company plans to launch several new games in the second half of 2025, which are expected to contribute to revenue growth [3] Investment Outlook - The company maintains a strong investment rating, projecting revenues of 4.413 billion RMB, 6.841 billion RMB, and 7.730 billion RMB for 2025, 2026, and 2027 respectively, with net profits of 2.056 billion RMB, 3.196 billion RMB, and 3.715 billion RMB [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][4][12] Core Views - The company achieved a significant quarter-on-quarter revenue increase in Q2, driven by new game releases, indicating strong performance momentum [4][5] - The company's H1 revenue reached 1.662 billion yuan, a year-on-year increase of 16.47%, with a net profit of 777 million yuan, up 8.27% year-on-year [4] - The contract liabilities reached 889 million yuan by the end of Q2, reflecting a 79% year-on-year increase, indicating ongoing strong game performance [4][5] Financial Summary - For 2025, the company is projected to achieve a net profit of 2.293 billion yuan, with a year-on-year growth of 60.9% [4][9] - The revenue forecast for 2025 is set at 4.688 billion yuan, representing a 60.4% increase compared to the previous year [4][9] - The company's gross margin is expected to be 90.5% in 2025, with a net margin of 48.9% [9] Game Performance - The game "Supernatural Action Group" has shown exponential growth in user scale and revenue, ranking in the top 5 of iOS free games and top 4 in iOS revenue charts [5][6] - The game "Original Journey" has expanded its user base significantly, with over 20 million new users in the first half of the year [5] AI Integration - The company is exploring AI integration in gaming, enhancing user engagement and driving revenue growth through innovative gameplay [6]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% compared to the benchmark index [4]. Core Views - The company's revenue and profit showed steady growth in the first half of 2025, with a revenue of 1.662 billion RMB, up 16.47% year-on-year, and a net profit of 777 million RMB, up 8.27% year-on-year. The company also announced a cash dividend of 1.50 RMB per share, boosting investor confidence [2][4]. - The game "Supernatural Action Team" exceeded market expectations after its launch, achieving over 1 million concurrent players in July and maintaining a top 10 position in the iOS sales chart. The mature product line is performing steadily, with significant user growth in the "Journey" IP segment [3][4]. Financial Summary - For the first half of 2025, the company reported a revenue of 1.662 billion RMB, with a year-on-year growth of 16.47%. The net profit attributable to shareholders was 777 million RMB, reflecting an 8.27% increase. The second quarter saw a revenue of 938 million RMB, up 28.42% year-on-year, and a net profit of 429 million RMB, up 17.49% year-on-year [2]. - The company expects earnings per share (EPS) to be 1.09 RMB in 2025, 1.58 RMB in 2026, and 1.74 RMB in 2027, with corresponding price-to-earnings (PE) ratios of 28x, 19x, and 17x respectively [4][6]. - The financial forecast indicates a revenue of 4.761 billion RMB in 2025, with a year-on-year growth of 62.91%, and a net profit of 2.116 billion RMB, reflecting a 48.49% increase [6][11].

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Viewpoints - The launch of the first "Dream Level" costume "Wuling'er - Mirror Dream" for the game "Supernatural Action Group" on the 17th has led to a peak ranking in the iOS free list at Top 3 and Top 4 in the sales list, marking a new high since its launch [2][4] - The unique themes and gameplay of "Supernatural Action Group" are driving sustained interest, with strong social features potentially making it another blockbuster product with high daily active users (DAU) [2][4] - The company is actively advancing several new games, including "Five Thousand Years" and "Famous Generals Kill," alongside a comprehensive layout of game + AI strategies, supporting long-term growth [2][4] Summary by Sections Event Description - The first "Dream Level" costume "Wuling'er - Mirror Dream" was launched on the 17th, achieving significant rankings in various app store categories [4] Event Commentary - The game "Supernatural Action Group" has maintained a weekly update frequency since summer, with new costumes, characters, and maps contributing to its ranking improvements [11] - The game features innovative themes such as "supernatural, Cthulhu, and folk horror," appealing to younger players' desire for excitement and curiosity [11] - The company is integrating AI technology into gameplay, with products like "Space Kill" being among the first to utilize AI in the gaming industry [11] Financial Forecast and Investment Suggestions - The company is projected to achieve net profits of 2.26 billion and 2.86 billion for 2025 and 2026, respectively, corresponding to price-to-earnings ratios of 24.3 and 19.1 times [11]