Summary of the Conference Call for Giant Network Company Overview - **Company**: Giant Network - **Industry**: Gaming Key Points and Arguments Performance of "Supernatural Action Group" - "Supernatural Action Group" has shown significant improvement in the iOS sales rankings from June to August, reaching a peak of 100 million concurrent users in July and maintaining a top five position in the iOS free chart [2][3] - The game ranked around 52nd, 22nd, and 12th in the iOS sales chart during June, July, and August respectively, and improved to around 11th after the launch of "Escape from Horror" in September [4][5] - The upcoming "Monster Farm" is expected to further increase online user engagement and revenue during the National Day holiday [2][5] Future Product Pipeline - In addition to "Supernatural Action Group," Giant Network has several upcoming titles, including "Ming Jiang Sha" and "5,000 Years," which are set to launch between 2026 and 2027, potentially driving revenue growth [2][6] - The company is actively integrating AI technology into its games, enhancing user experience and engagement through innovative features [6][9] Market Expectations and Valuation - Market expectations for Giant Network's performance in 2025 and 2026 have been continuously revised upward due to the strong performance of "Supernatural Action Group" [7][8] - The company's valuation is expected to rise as "Supernatural Action Group" becomes a leading long-term game, alongside the launch of other products [8] AI Integration and Innovations - Giant Network has made significant strides in integrating AI with gaming, enhancing player engagement and retention through features like the Deepseek R1 model in its core product [9] - The introduction of AI-driven gameplay mechanics has led to increased player activity, session length, and revenue growth [9] Key Factors Influencing Future Performance - Future performance and stock price are influenced by the ongoing updates and innovations in "Supernatural Action Group," as well as the impact of "Monster Farm" and upcoming holiday events [10][11] - The successful testing and launch of new products like "Ming Jiang Sha" will also play a crucial role in the company's long-term growth and valuation [11][13] Current Market Position - Despite recent stock price fluctuations, Giant Network remains in a growth phase, with new product performances expected to drive significant revenue revisions [12][13] Additional Important Insights - The company is focusing on maintaining a robust product pipeline and leveraging AI to enhance gaming experiences, which are critical for sustaining growth in a competitive market [6][9] - Investors are encouraged to monitor the performance of new products and their potential impact on revenue and market valuation [12][13]

Summary of Giant Network Conference Call Company Overview - **Company**: Giant Network - **Industry**: Gaming Key Points and Arguments 1. **Valuation and Growth Potential**: The gaming sector's overall valuation is between 16 to 17 times, with a long-term upward trend expected when excluding AI-related entities. The upcoming summer season and AI application data are anticipated to perform well, suggesting an overweight recommendation for the gaming sector [2][4]. 2. **2025 Performance Outlook**: Giant Network's performance growth for 2025 is highly certain, with significant valuation elasticity. The stock price is expected to rise due to dual catalysts from the summer season and the implementation of AI multimodal models [2][5]. 3. **Game Launch Success**: The game "Supernatural Action Group" has shown strong performance post-launch, with peak daily revenue exceeding one million on iOS. Monthly revenue is projected to reach 20 million, with optimistic scenarios suggesting 60 million to 100 million, translating to annual revenue between 500 million to 1.2 billion [2][6]. 4. **Target Demographic**: The user profile for "Supernatural Action Group" skews towards young female players, a demographic known for high mobile game spending, indicating strong potential for summer performance [2][6]. 5. **Future Development Directions**: Giant Network aims to transition from single-category casual games to multiple categories, including a shift from MMO to SLG in mid-to-heavy value games. Current profit forecasts do not yet account for new card and SLG categories, with impacts expected to reflect in next year's reports [2][7]. 6. **AI Application Strategy**: Since 2023, Giant Network has been actively pursuing an AI application strategy, with a structured approach that, while slower than competitors like Kaiying Network, still shows promising development potential [2][7][8]. 7. **Comparison with Kaiying Network**: Both companies are exploring AI applications, but Giant Network has a clearer strategic layout and steadier implementation pace compared to the more aggressive approach of Kaiying Network [2][8]. 8. **Current Valuation Assessment**: The current valuation of Giant Network is approximately 17 times, which is considered attractive for investment. The company's performance, profit structure, and long-term logic indicate a positive improvement trend, supported by organizational changes made by CEO Zhang Dong [3][9]. Additional Important Insights - **Market Share Growth**: The A-share gaming sector is expected to gain market share due to weaker product lines from major competitors [4]. - **Product Line Stability**: Existing products, including "Ball Battle" and "Space Sand," have shown stable performance and growth, contributing to the overall positive outlook for the company [5].