三季度收入环比增长8.28%，加大投放力度至利润端阶段性下滑公司发布2024 年三季报，实现营业收入22.18 亿元，同比下滑2.15%，实现归母净利润10.71 亿元，同比下滑1.29%。单三季度来看，实现营业收入7.91 亿元，同比下滑3.94%，环比增长8.28%，实现归母净利润3.53 亿元，同比下滑16.18%，环比下滑3.34%。三季度公司加大销售费用投放力度，三季度销售费用率35.24%，同比/环比分别提升7.49/4.15 个百分点，整体归母净利润率三季度为44.62%。occurrences
The company released its 2024 three-quarter report.
Comment:
Revenue increased 8.28% month-on-month in the third quarter, increasing investment efforts until the profit side phased down. The company released its 2024 three-quarter report, achieving operating income of 2.218 billion yuan, a year-on-year decrease of 2.15%, and net profit to mother of 1.071 billion yuan, a year-on-year decrease of 1.29%. Looking at the third quarter of a single quarter, revenue of 0.791 billion yuan was achieved, down 3.94% year on year, up 8.28% month on month, and realized net profit of 0.353 billion yuan to mother, down 16.18% year on year and 3.34% month on month. In the third quarter, the company increased its sales expenses. The sales expense ratio for the third quarter was 35.24%, up 7.49/4.15 percentage points year-on-year, respectively. The overall net profit margin for the third quarter was 44.62%.
The “Journey to the King” applet version performed well on all platforms, and continued to perform brilliantly since the launch of the AI company's applet game “Journey to the King” in February. According to Gamelook statistics, “Journey to the King” ranked 9/10/13/14 in the best-selling mini-game rankings in 7/8/9/10, respectively, which has supported the company's overall sales market. Currently, “Journey to the King” has been launched on all platforms on October 24. Both the app version and the applet version support subsequent company turnover performance. In terms of old products, “Battle Ball” performed well overall. According to point data, its domestic free game list rose to 11th place in the third quarter, and the “Original Journey” volume declined, so it is worth looking forward to subsequent new versions. On the AI side, on September 19, at the 2024 Yunqi Conference, Giant Network participated in the exhibition for the first time with a number of new “game+AI” achievements. Two self-developed big models, GiantGPT and Bailing-TTS applications, were launched, and AI new AI technologies such as Giant Impression and AI Digital Man were unveiled. Among them, GiantGPT is a large vertical model focusing on the game business. It combines high-quality private data with Internet public data training, and is deeply optimized for basic abilities such as character interpretation, contextual reasoning, and long-term memory. Its application effects have been verified in the Giant online game business scenario. Bailing-TTS is the first large-scale phonetic model in the industry to support mixed Mandarin dialects. The Giant Network AI Lab built a Mandarin and dialect data set covering 20 dialects, over 0.2 million hours, and used a number of innovative technologies for large-scale model training. Bailing-TTS not only supports zero-sample cloning of Mandarin, but can also generate speech in various dialects such as Henan, Shanghainese, and Cantonese.
Investment advice and profit forecasting
The company's Journey IP circuit operates steadily, leisure and competition products consolidate category advantages, and the AI layout enables multiple businesses. Considering changes in the pace of product launch and adjusting profit forecasts, it is estimated that EPS will be 0.71/0.81/0.91 yuan and PE will be 17/15/14x in 24-26, maintaining a “buy” rating.
Risk warning
New travel performance falls short of expectations; risk of policy regulation; risk of macro-consumer market fluctuations, etc.
