KINGNET(002517) 国元证券·2025-04-28 04:40Investment Rating - The report maintains a "Buy" rating for the company [4][7]. Core Insights - The company demonstrated stable high growth with a revenue of 5.118 billion yuan in 2024, up 19.16% year-on-year, and a net profit of 1.628 billion yuan, up 11.41% year-on-year [2]. - The company has a rich reserve of products and intellectual properties (IPs), with successful game titles and a strong pipeline of 13 games in development [3]. - The company is actively exploring AI technology applications, enhancing game development efficiency through its AI model [3]. Financial Performance - In Q1 2025, the company achieved a revenue of 1.353 billion yuan, a year-on-year increase of 3.46%, and a net profit of 518 million yuan, up 21.57% year-on-year [2]. - The company plans to distribute a cash dividend of 1 yuan per 10 shares, totaling 426 million yuan, which accounts for 26.18% of the net profit [2]. - The projected earnings per share (EPS) for 2025-2027 are 1.00, 1.14, and 1.29 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 16, 14, and 13 times [4]. Product and IP Development - The company has established a competitive barrier in retro-themed games and has diversified its portfolio with innovative titles [3]. - The overseas game revenue reached 375 million yuan in 2024, marking a significant growth of 221.48% year-on-year [3]. - The company holds several well-known IPs, which support its product development and commercialization efforts [3]. Strategic Focus - The company is focusing on three main business areas: research and development, publishing, and investment in the gaming industry [4]. - It is strategically investing in five companies, including a lead investment in an AI companionship application, which has garnered significant industry attention [3].