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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].