KINGNET(002517) 长江证券·2025-04-30 09:44Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company is expected to achieve a revenue of 5.118 billion (up 19.16% year-on-year) and a net profit attributable to shareholders of 1.628 billion (up 11.41% year-on-year) in 2024. The first quarter of 2025 shows a revenue of 1.353 billion (up 3.46% year-on-year) and a net profit of 518 million (up 21.57% year-on-year) [2][4]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 5.118 billion (up 19.16% year-on-year) and a net profit of 1.628 billion (up 11.41% year-on-year). The fourth quarter of 2024 saw a revenue of 1.191 billion (down 5.95% year-on-year) and a net profit of 348 million (down 8.17% year-on-year). The first quarter of 2025 reported a revenue of 1.353 billion (up 3.46% year-on-year) and a net profit of 518 million (up 21.57% year-on-year) [2][4]. Growth Drivers - The company has shown strong overseas performance in 2024, with overseas revenue reaching 375 million (up 221.48% year-on-year). The new game "Dragon Valley World" launched in February 2025 has driven growth, entering the iOS bestseller list on its launch day [10]. Cost Management and Profitability - The company increased its sales expenses by 29% to 459 million in the first quarter of 2025 due to the new game launch. However, the sales expense ratio decreased year-on-year. The gross margin improved to 83.6% in the first quarter of 2025, contributing to an increase in net profit margin to 38.3% [10]. AI and New Game Pipeline - The company is actively investing in AI, with the development of the "Xingyi" model and partnerships for AI applications. A rich pipeline of new games is expected to drive future performance, with several key IP products set to launch [10].