恺英网络20250905

Summary of Key Points from the Conference Call Company Overview - The conference call discusses Kying Network, focusing on its strategic transformation and market positioning within the gaming industry, particularly the Legend IP segment. Core Insights and Arguments - Market Potential: The Legend IP remains vibrant, attracting new user demographics, including younger generations (90s, 95s, and even 00s), with a notable proportion of female players, indicating significant market potential [2][4]. - Strategic Shift: Kying Network has transitioned from a game developer to a full industry chain controller by signing an exclusive licensing agreement with Tianqiong Interactive, which allows the company to leverage the "Legend Box" private channel, significantly reducing customer acquisition costs [2][4]. - Revenue Growth: The company has entered into brand cooperation agreements with leading firms such as Sanjiao Entertainment, Tanwan Games, and Zhangwan Technology, generating a total of 450 million yuan in entry fees, which has notably enhanced company revenues [2][5]. - Profitability of "Legend Box": The "Legend Box" information service revenue now accounts for nearly 20% of Kying Network's total revenue, with a gross margin of 90%. The revenue and profit contribution from this segment is expected to increase by over 60% year-on-year in the first half of 2025 [2][6]. - Net Profit Contribution: The net profit margin from the "Legend Box" business is projected to exceed 60%, potentially contributing 30%-40% to Kying Network's overall performance last year, with future profit contributions possibly approaching or exceeding 50% [2][6]. Additional Important Insights - AI Initiatives: Kying Network possesses a unique advantage in the AI sector, with investments in projects like EVE and the AI UGC dual engine, which may enhance the company's valuation flexibility and market competitiveness [2][7]. - Long-term Growth Potential: The company's focus on exploring new product categories and IP development is expected to provide substantial upward adjustments in profit forecasts, with a projected 17x PE by 2026, leading to its inclusion in the September stock recommendation list [2][7]. - Overall Outlook: The strategic transformation through the "Legend Box" and advancements in AI and new product categories position Kying Network for robust future growth, with expectations of stable performance and potential for exceeding return forecasts [2][8].