Investment Rating - The investment rating for the company is "Accumulate" (maintained) [5] Core Views - The commercialization of the "Legend Box" is accelerating, and a new product cycle is beginning [5] - The company reported a revenue of 4.075 billion yuan for the first three quarters of 2025, a year-on-year increase of 3.75%, and a net profit attributable to shareholders of 1.583 billion yuan, a year-on-year increase of 23.70% [7] - The "Legend Box" platform is showing significant value, contributing approximately 570 million yuan to the company's revenue in Q3 2025 [7] - The company has a rich pipeline of products and is actively expanding into AI applications [7] Financial Performance Summary - Revenue forecast for 2023 to 2027 is as follows: 4,295 million yuan (2023), 5,118 million yuan (2024), 6,046 million yuan (2025E), 6,929 million yuan (2026E), and 7,659 million yuan (2027E) with corresponding growth rates of 15.30%, 19.16%, 18.13%, 14.60%, and 10.54% [6] - Net profit attributable to shareholders is projected to be 1,462 million yuan (2023), 1,628 million yuan (2024), 2,094 million yuan (2025E), 2,452 million yuan (2026E), and 2,722 million yuan (2027E) with growth rates of 42.58%, 11.41%, 28.57%, 17.10%, and 11.01% respectively [6] - The price-to-earnings ratio (P/E) is expected to decrease from 34.93 in 2023 to 18.76 in 2027 [6]

Core Viewpoint - The report from Xinda Securities highlights that Kaiying Network's net profit attributable to shareholders for the first three quarters of 2025 reached 1.583 billion yuan, representing a year-on-year increase of 23.70% [1]. Financial Performance - In Q3, the net profit attributable to shareholders was 633 million yuan, showing a year-on-year growth of 34.51% and a quarter-on-quarter increase of 46.66% [1]. Business Development - The growth of the "Legend Box" is notable, emphasizing the value of the company. The company continues to optimize the operation of the Legend ecosystem through traffic sharing, content co-creation, and ecological construction to further explore the value potential of the Legend IP [1]. AI Initiatives - In the AI sector, the company has invested in Natural Selection's "EVE," the world's first 3D AI companion application, which has begun internal testing [1]. - The company launched an AI full-process development platform called "SOON" specifically designed for the gaming industry in July [1]. - A new AI healing toy brand, "Warm Star Valley Dream Journey," featuring a model of "smart dolls + virtual games," is set to release its first product during the "Double Eleven" shopping festival [1]. Future Outlook - The company's product reserves are expected to support future performance growth, with the Legend Box further tapping into the value of the Legend IP and ongoing investments in AI [1]. - The report maintains a "Buy" rating for the company [1].

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company reported a revenue of 4.075 billion yuan for the first three quarters of 2025, representing a year-on-year growth of 3.75%, and a net profit attributable to the parent company of 1.583 billion yuan, which is a year-on-year increase of 23.70% [1] - The "Legend Box" product line showed significant growth, achieving approximately 570 million yuan in revenue in Q3 2025, driven by brand zone entry services [4] - The company has a rich pipeline of new products and is diversifying into AI applications, which are expected to drive future revenue growth [5] Financial Performance Summary - For Q3 2025, the company achieved a revenue of 1.497 billion yuan, a year-on-year increase of 9.08% and a quarter-on-quarter increase of 22.19% [3] - The net profit attributable to the parent company for Q3 2025 was 633 million yuan, reflecting a year-on-year growth of 34.51% and a quarter-on-quarter growth of 46.66% [3] - The company’s gross profit margin for 2025 is projected to be around 82.0% [7] - The expected net profit attributable to the parent company for 2025 is 2.207 billion yuan, with a year-on-year growth of 35.5% [6][7] Product and Market Development - The company has launched several new games in Q3 2025, including "Hot Blood Jianghu: Return" and "Ragnarok: The Promised Adventure," with more titles in the pipeline [5] - The "Legend Box" platform integrates various entertainment forms, enhancing user engagement and monetization opportunities [4] - The company is actively investing in AI technologies, including a 3D AI companion application and an AI development platform tailored for the gaming industry [5]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - The company reported Q3 2025 revenue of 1.497 billion (up 9.08% year-on-year) and a net profit attributable to shareholders of 633 million (up 34.51% year-on-year) [2][4]. - The launch of new games such as "热血江湖：归来" contributed to revenue growth, with the "传奇盒子" generating approximately 570 million in revenue [2][4]. - The company's profitability improved due to stable expenses and optimized business structure, with gross margin at 84.2% and net profit margin at 42.3% for Q3 [6]. Summary by Sections Financial Performance - Q3 2025 revenue reached 1.497 billion, with a year-on-year increase of 9.08% and a net profit of 633 million, reflecting a 34.51% increase [2][4]. - The company achieved a non-GAAP net profit of 582 million, up 21.11% year-on-year [2][4]. - The revenue from "传奇盒子" was approximately 570 million, with brand zone service income contributing about 245 million [6]. Business Growth Drivers - The launch of new games, including "热血江湖：归来" and "SEVEN: GLORY ROAD," contributed to the revenue increase, with overseas revenue reaching 126 million, accounting for 8.4% of total revenue [6]. - The company is expected to benefit from the ongoing growth of the "传奇盒子" platform and the release of new games, which will drive performance [6]. Future Outlook - The company is optimistic about the performance of the "传奇盒子" and the upcoming new games, which are expected to contribute to revenue growth [6]. - The AI development initiatives are anticipated to enhance valuation flexibility, with the AI gaming development platform "SOON" expected to commercialize in 2026 [6].

Core Insights - The company reported a revenue of 4.075 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 3.75%, with a net profit attributable to shareholders of 1.583 billion yuan, up 23.70% year-on-year [1] - In Q3 alone, the company achieved a revenue of 1.497 billion yuan, reflecting a year-on-year growth of 9.08% and a quarter-on-quarter increase of 22.19%, with a net profit of 633 million yuan, marking a year-on-year rise of 34.51% and a quarter-on-quarter increase of 46.66% [1] - The significant profit growth in Q3 is attributed to the high-margin information service revenue driven by the "Legend Box" product, which saw a 65.3% increase in information service revenue in the first half of 2025, reaching 657 million yuan with a gross margin of 90.7% [1] Financial Performance - Key financial metrics for the first three quarters include a gross margin of 83.04% (up 0.8 percentage points year-on-year) and a net profit margin of 38.85% (up 6.3 percentage points year-on-year), with Q3 net profit margin reaching 42.35% (up 7.1 percentage points quarter-on-quarter) [1] - Expense ratios for the first three quarters show a sales expense ratio of 31.28% (down 3.8 percentage points year-on-year), a management expense ratio of 2.90% (down 0.7 percentage points year-on-year), and a research and development expense ratio of 10.70% (up 0.5 percentage points year-on-year) [1] Business Development - The "Legend Box" is increasingly demonstrating its aggregation effect, with daily active users growing and new partnerships established with game developers, contributing to a sustainable profit growth point [2] - The company launched its self-developed AI full-process development platform "SOON," which is expected to significantly shorten game development cycles and enhance production efficiency, while the AI companion application "EVE" is set to launch by the end of 2025 [2] - The company has a rich pipeline of new games, with several titles already approved for release, including "Super Shrimp Battle" and "Blood of Heroes: Return," indicating a strong focus on both existing and new markets [2] Investment Outlook - The company is expected to see the platform ecosystem value of the "Legend Box" become a new growth driver, with projected net profits of 2.122 billion yuan, 2.607 billion yuan, and 2.972 billion yuan for 2025-2027, corresponding to price-to-earnings ratios of 24, 19, and 17 times [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company is leveraging AI and IP to create an ecological matrix that drives stable revenue growth through multi-level optimization [5] - The company has shown strong performance in its gaming segment, with a focus on expanding its product matrix through AI and IP integration [5] Financial Data and Valuation - Projected revenue for 2023 is 4,295 million, with a year-on-year growth of 15.3%. Revenue is expected to reach 5,118 million in 2024, 6,164 million in 2025, 7,182 million in 2026, and 8,350 million in 2027 [3][6] - Projected net profit for 2023 is 1,462 million, with a year-on-year growth of 42.6%. Net profit is expected to be 1,628 million in 2024, 2,157 million in 2025, 2,565 million in 2026, and 3,102 million in 2027 [3][6] - The gross margin is projected to be 83.5% in 2023, gradually decreasing to 81.7% by 2027 [3][6] - The company’s P/E ratio is expected to decrease from 34.4 in 2023 to 16.2 in 2027, indicating an improving valuation over time [3][6] Recent Performance - In the first three quarters of 2025, the company achieved a revenue of 40.75 billion, a year-on-year increase of 3.75%, and a net profit of 15.83 billion, up 23.70% year-on-year [5] - The company reported a significant increase in net profit for Q3 2025, reaching 6.33 billion, which is a 34.51% increase year-on-year [5] Strategic Initiatives - The company is expanding its product offerings with new game releases and AI applications, including the AI game development platform "SOON" and various IP-based mobile games [5] - The "Legendary Box" initiative aims to transform the company from a single product competitor to an ecological operator, enhancing its market position [5]

Core Viewpoint - Kaiying Network (恺英网络) demonstrated strong performance in Q3 2025, achieving revenue of 1.497 billion yuan, a year-on-year increase of 9.08%, and a net profit of 633 million yuan, reflecting a significant growth of 34.51% compared to the previous year, showcasing its competitive edge in the gaming market [1][2] Financial Performance - The company reported a revenue of 1.497 billion yuan and a net profit of 633 million yuan for Q3 2025, with basic earnings per share at 0.3 yuan [1] - The revenue growth indicates continuous business expansion and increasing market share, while the substantial rise in net profit highlights improvements in cost control and operational efficiency [1] Industry Context - The overall gaming industry is experiencing a recovery, with the Chinese gaming market's actual sales revenue reaching 88.026 billion yuan in Q3 2025, a quarter-on-quarter increase of 6.96% but a year-on-year decline of 4.08% [2] - Kaiying Network's growth contrasts sharply with the industry's overall decline, demonstrating its resilience and adaptability in a challenging market environment [2] Product Development - The company has launched the public beta of "Blood of the River: Return" and has several other products in the pipeline, including games based on popular IPs such as "Three Kingdoms: The World Returns" and "Tomb Raider: Journey" [3] - The AI game development platform "SOON" has entered the project application phase, significantly enhancing development efficiency and is expected to be commercialized by 2026 [3] International Expansion - Kaiying Network is actively pursuing global distribution, with overseas revenue growing from 117 million yuan in 2023 to 202 million yuan in the first half of 2025, increasing its share of total revenue from 2.71% to 7.82% [4] - The company has established deep partnerships with various overseas channels, enhancing its international market presence [4] Competitive Advantage - The company is leveraging the enduring popularity of legendary games, which have generated cumulative revenue of 371.3 billion yuan in China, with a projected market value exceeding 560 billion yuan by 2030 [5] - Despite challenges in the legendary game market, such as version fragmentation and private server issues, Kaiying Network's "Legend Box" aims to create a unified ecosystem for players, enhancing user experience and engagement [6][7] Ecosystem Development - The "Legend Box" aggregates over a thousand legendary games and offers various services, including a trading platform, cloud gaming, live streaming, and community features, providing a comprehensive experience for players [7] - The platform is also expanding into derivative businesses, such as short dramas and novels, to enhance user engagement and broaden monetization channels [8] Strategic Upgrade - Kaiying Network is transitioning from a product-driven strategy to a multi-faceted approach, focusing on content, platform, and ecosystem strength to better withstand market fluctuations and provide stable growth signals to investors [8]

Core Insights - The company reported a revenue of 1.497 billion yuan in Q3 2025, representing a year-on-year growth of 9.08%, and a net profit of 633 million yuan, up 34.51%, maintaining a dual growth trend in performance [1] Group 1: Business Performance - The company's core business continues to deepen, and the acceleration of its platform strategy has contributed to steady growth [1] - The "Legend Box" platform has maintained high activity levels, providing significant support for the company's performance growth [1] Group 2: Market Position and Strategy - The "Legend" game segment has a vast user base exceeding 150 million, with a market space estimated between 35 billion to 40 billion yuan, but faces challenges such as version fragmentation and decentralized competition [2] - The "Legend Box" platform aggregates over a thousand "Legend" games and offers a comprehensive service experience, enhancing user engagement and monetization channels [2][3] Group 3: Product Development and Innovation - The company has launched new products, including "Blood of Heroes: Return," and has a pipeline of several licensed IP adaptation games, ensuring a stable product iteration [4] - The AI game development platform "SOON" has entered the project application phase, significantly improving development efficiency, with commercialization expected by 2026 [4] Group 4: International Expansion - The company has established deep partnerships for global distribution, achieving rapid revenue growth in overseas markets, with foreign income rising from 117 million yuan in 2023 to 202 million yuan in the first half of 2025 [5] Group 5: Shareholder Returns - The major shareholders and management have committed to a "five-year no reduction" policy, with significant share buybacks and cash dividends totaling 1.212 billion yuan since the company's listing, reflecting confidence in future development [6]

Core Insights - The company reported a revenue of 1.497 billion yuan in Q3 2025, representing a year-on-year growth of 9.08%, and a net profit attributable to shareholders of 633 million yuan, up 34.51%, maintaining a dual growth trend in performance [1] - The company's robust growth is supported by the continuous deepening of its core business and the accelerated implementation of its platform strategy, with the Legend Box being a key contributor to performance [1][2] - The Legend Box platform has rapidly increased its daily active users since its preparation for launch in April 2020, and the company plans to develop it into a "multi-classic IP ecosystem platform" [2] Business Developments - The company has made progress in launching new products, expanding overseas, and returning value to shareholders, indicating a multi-point release of growth momentum [2] - The new product "Hot Blood Jianghu: Return" has entered public testing, with several other products in the pipeline, ensuring a stable succession of product iterations [2] - The AI game development platform "SOON" has entered the project application phase, significantly enhancing R&D efficiency, with expectations for commercialization by 2026 [2] International Expansion - The company is actively pursuing global distribution, establishing deep partnerships with numerous overseas channels, resulting in rapid revenue growth in recent years [3] - The company has implemented nine cash dividend distributions since its listing, totaling 1.212 billion yuan, demonstrating a stable cash dividend policy and a strong commitment to returning value to shareholders [3] - The major shareholders and management have committed to a "five-year no reduction" policy and reinvesting dividends into share purchases, reflecting confidence in the company's future development [3] Strategic Upgrade - The company's performance in Q3 indicates a strategic upgrade from product-driven to multi-driven growth, positioning it to better withstand cyclical fluctuations in the industry [3]

Core Insights - The company reported a revenue of 1.497 billion yuan for Q3 2025, marking a year-on-year growth of 9.08%, and a net profit attributable to shareholders of 633 million yuan, reflecting a year-on-year increase of 34.51%, maintaining a dual growth trend in performance [1] - The core business, "Legend Box," continues to leverage aggregation effects, attracting over a thousand legendary games and providing a comprehensive user experience with various services [1] - The company is actively expanding its IP derivative content, venturing into short dramas, novels, and digital collections to enhance monetization channels and user engagement [1] Business Development - The AI game development platform "SOON" has entered the project application phase, significantly improving R&D efficiency and is expected to commercialize by 2026 [2] - The company's overseas revenue grew from 117 million yuan in 2023 to 202 million yuan in the first half of 2025, with the revenue share increasing from 2.71% to 7.82% [2] - The company’s major shareholder and management have committed to a "five-year no reduction" policy, with a total increase of 41.68 million yuan through cash dividends for share buybacks completed by June 16, 2025 [2] Shareholder Returns - The company has repurchased shares totaling over 800 million yuan since 2019, with a recent buyback of 8.95 million shares amounting to approximately 200 million yuan [3] - The company has implemented nine cash dividend distributions since its listing, with a total dividend payout of 1.212 billion yuan, demonstrating a stable cash dividend policy and commitment to shareholder returns [3]