KINGNET(002517) 国金证券·2025-04-28 06:26Investment Rating - The report maintains a "Buy" rating for the company, expecting a significant price increase over the next 6-12 months [6]. Core Insights - The company reported a revenue of 5.12 billion yuan for 2024, representing a year-on-year growth of 19.2%, and a net profit of 1.63 billion yuan, up 11.4% year-on-year. For Q1 2025, revenue was 1.35 billion yuan, a 3.5% increase year-on-year, with a net profit of 520 million yuan, reflecting a 21.6% year-on-year growth [2][6]. - The company has a strong product pipeline, with several new games set to launch, including "Digimon: Source Code" and "Tomb Raider: Journey" [5]. - The integration of AI technologies is enhancing the company's capabilities in game development, with applications in animation and story generation [5]. Revenue Analysis - The company's revenue for 2024 was driven by significant growth in mobile gaming and information services, with mobile game revenue reaching 4.06 billion yuan, up 13.4% year-on-year, and information services revenue at 940 million yuan, up 41.6% year-on-year [3]. - The Q4 2024 revenue was 1.19 billion yuan, showing a decline due to the natural decline of older products, while Q1 2025 saw a recovery with new game contributions [3]. Profitability Analysis - The company's net profit margin improved in Q1 2025, attributed to a rise in gross margin and reductions in management and R&D expense ratios [4]. - The net profit margin for Q1 2025 was 29.3%, an increase of 5.7 percentage points year-on-year, driven by changes in revenue structure [4]. Financial Forecast - The company is expected to receive a non-operating income of 224.5 million yuan from a legal arbitration case, which will positively impact the net profit forecasts for 2025-2027, with projected net profits of 2.18 billion yuan, 2.36 billion yuan, and 2.63 billion yuan respectively [6].