巨人网络20250903

Summary of the Conference Call for Giant Network Industry and Company Overview - The conference call focuses on Giant Network, a company in the gaming industry, particularly known for its classic IP "Journey" series, which has generated nearly 3 billion RMB in revenue before 2023, primarily targeting male users from the 70s and 80s [2][4]. Key Points and Arguments - Revenue Growth from New Titles: The game "Supernatural Action Group," launched in 2025, has shown strong performance, contributing approximately 2-2.5 billion RMB in revenue from May to December 2025, with expectations to reach 4-5 billion RMB in 2026, marking it as a new growth engine for the company [2][4]. - User Demographic Shift: Giant Network has successfully diversified its user base, attracting younger and female users, particularly those born in the 00s and 05s, which has driven overall revenue growth from 3-4 billion RMB to an anticipated 8-9 billion RMB [2][4]. - Long-term Game Operation Strategy: The company has shifted from traditional MMORPGs, which rely on short-term hits, to rule-driven games like "Supernatural Action Group," allowing for long-term operation and stable revenue growth [2][5]. - Performance of "Original Journey": The new flagship product "Original Journey" generated 1.5 billion RMB in its first year, achieving a growth rate of approximately 50%, significantly contributing to the company's performance [2][6]. - Market Opportunity for Female Gamers: By 2025, the proportion of female users in the Chinese mobile gaming market increased to 48%, presenting a market opportunity due to insufficient quality product offerings for this demographic [2][7]. Additional Important Insights - Changing Game Market Dynamics: The gaming market is experiencing a shift in user demographics and preferences, with emerging game genres gaining traction over traditional MMORPGs. This necessitates a focus on long-cycle innovation rather than frequent short-term releases [5][8]. - Valuation Outlook: Analysts are optimistic about Giant Network's future performance, suggesting that the company should enjoy a valuation premium due to its growth potential and the overall A-share gaming sector still having significant room for valuation improvement [3][9]. - Understanding Female Players: The success of "Supernatural Action Group" in attracting female players is attributed to its understanding of their preferences, which has led to high profitability without the need for advertising [10]. This summary encapsulates the key insights and developments discussed during the conference call, highlighting Giant Network's strategic shifts, market opportunities, and future growth potential.