Comprehensive Analysis
I. In-depth Analysis of Trading Limit Drivers
Giant Network’s trading limit today is the result of multiple positive factors, with the core driver stemming from the company’s innovative breakthroughs in the AI + game sector.
The innovation of native AI gameplay is a milestone.
On January 19, the company announced the launch of the “AI Large Model Challenge” gameplay in its hit mobile game
Paranormal Task Force, marking the first time that AI large model capabilities have been introduced into the core gameplay layer of a high DAU (Daily Active Users) game, open to all users [1][2]. This innovation has achieved two key breakthroughs: First, AI-driven NPC “bots” are capable of voice communication and imitating the behaviors of real players, greatly enhancing the game interaction experience; Second, the cumulative number of matches with AI participation has exceeded 25 million, verifying the feasibility of the technology in commercial scenarios [1]. This cooperation model integrates technical resources from three leading technology platforms: Alibaba Cloud, Volcano Engine, and Tencent Cloud, and is regarded by the industry as
the first landmark case in China where native AI embedding and verification have been completed in a high DAU product
[1][2].
Continuous expansion of business layout.
On the same day, data from Qichacha shows that Huangshan Giant Network Technology Co., Ltd. was established with a registered capital of RMB 10 million, with Fei Yongjun as the legal representative, and its business scope includes internet game services, internet information services, second-class value-added telecommunications services, etc. [3]. This move indicates that the company is strengthening its market competitiveness through regional layout and business diversification strategies.
Strong fundamentals provide solid support.
According to financial data for the first three quarters of 2025, the company achieved operating revenue of RMB 3.368 billion, a year-on-year increase of 51.84%; net profit attributable to parent shareholders was RMB 1.417 billion, a year-on-year increase of 32.31% [4]. The revenue share of mobile online game business reached 78.16%, and the business structure has been continuously optimized [4]. The trend of double growth in revenue and profit provides clear value support for the stock price.
II. Capital Flows and Market Sentiment
Capital flow data shows a clear bullish attitude from institutions. Today, the net inflow of main capital reached RMB 321 million, ranking first among the 26 constituent stocks in the game sector [4][5]. Looking at a longer cycle, the net inflow of main capital reached RMB 388 million in the past 5 days and RMB 668 million in the past 20 days, indicating continuous capital inflow [4]. The game sector rose 5.06% overall today, with obvious sector linkage effects. As one of the sector leaders, Giant Network has fully benefited from capital chasing [5].
In terms of northbound capital, as of September 30, 2025, Hong Kong Central Clearing Co., Ltd. held 135 million shares, an increase of 43.2152 million shares compared to the previous period, reflecting a positive attitude from foreign investors [4]. In terms of trading volume, the volume ratio today reached 2.44, with trading volume significantly higher than recent levels, but the proportion of main capital turnover was relatively limited at 6.14%, with relatively scattered chip distribution and low main capital control [4].
III. Technical Characteristics
From a technical analysis perspective, the current stock price is operating in a key resistance range. The average transaction cost of chips is approximately RMB 40.59, and there is still room for growth from the current stock price of RMB 48.27 to the trading limit price of RMB 51.48 [4]. The 52-week high of RMB 51.30 constitutes an important technical resistance level [4]. If it can effectively break through and stabilize at this level, it is expected to open up a new round of upward space; otherwise, it may face a technical correction.
Key Insights
AI + game integration represents the future direction of the industry.
Giant Network’s innovative practice reveals the development trend of deep integration between the game industry and AI technology. By embedding AI capabilities into the core gameplay of games rather than just using them as auxiliary functions, the company has created a new product paradigm. If this model can be successfully verified in more products, it will reshape the product development and operation logic of the game industry, with far-reaching industry significance.
Cooperation model with leading cloud vendors highlights ecological value.
The company has established cooperation with three major platforms: Alibaba Cloud, Volcano Engine, and Tencent Cloud. This diversified cooperation model not only diversifies the risk of technical dependence but also integrates the advantageous resources of all parties. Against the backdrop of rapid iteration of AI technology, an ecological cooperation strategy has more competitive advantages than fighting alone.
Valuation level reflects market expectations.
The current price-to-earnings ratio (TTM) of 49.60 times is at a relatively high historical level [4]. This valuation level not only reflects the market’s optimistic expectations for the company’s AI innovation but also means that the stock price needs continuous performance realization to support it. The pressure from restricted share lifting on April 27, 2026 [4] may cause periodic disturbances to the medium and long-term stock price.
Risks and Opportunities
Main Risk Factors
Risk of correction at technical resistance levels.
The current stock price is close to the 52-week high of RMB 51.30. Based on historical experience, stock prices often experience technical corrections near important resistance levels [4]. If trading volume cannot continue to expand in coordination, the possibility of a pullback after a rally deserves attention.
Pressure of valuation digestion.
The P/E ratio (TTM) of 49.60 times means that the market has high expectations for the company’s future growth [4]. Once the user retention or commercial conversion of the AI gameplay fails to meet expectations, the valuation may face adjustment pressure.
Risk of sector rotation.
The AI application and commercial aerospace sectors have previously experienced consecutive adjustments [5], with frequent rotation of market hotspots. If the overall popularity of the game sector fades, it will be more difficult for Giant Network to strengthen independently.
Industry competition risk.
The game industry is highly competitive, and the performance of new products is uncertain. Investors need to continuously pay attention to the company’s new product reserves and market expansion.
Opportunity Window
Opportunity for valuation reconstruction brought by AI gameplay verification.
If the native AI gameplay can be continuously verified successfully in core indicators such as user scale, retention rate, and paid conversion, the company is expected to receive a revaluation of its AI capabilities from the market, and the stock price may face a value revaluation.
Spring Festival peak season effect.
The Spring Festival holiday is usually an important revenue window for the game industry. The company has abundant product reserves and is expected to benefit from seasonal demand growth.
Continuous inflow of main capital.
The main capital has seen a continuous net inflow of RMB 668 million in the past 20 days [4], indicating that institutional investors hold a positive attitude towards the company’s medium and long-term prospects, and the support from capital provides a certain margin of safety for the stock price.
Summary of Key Information
Giant Network’s trading limit today is the result of the combined effects of AI technological innovation, strong fundamentals, and capital support. The company’s launch of China’s first native AI gameplay for high DAU games is an industry benchmark, representing the development direction of AI + game integration. The double growth in revenue and profit in the first three quarters of 2025, as well as the increase in the share of mobile business to 78.16%, provide solid fundamental support for the company. Continuous net inflow of main capital and continuous increase in northbound capital holdings indicate strong confidence from institutional investors.
Technically, the stock price has reached a key resistance level near the 52-week high, and investors need to pay attention to the effectiveness of the breakthrough and matching trading volume. The current valuation is at a relatively high historical level, and continuous performance realization is required to support the P/E ratio level. Investors should closely monitor the user retention and commercial conversion of the AI gameplay, as well as the potential impact of time nodes such as restricted share lifting on the stock price.
Data Source Notes:
The analysis in this report is based on public market data and relevant media reports. Quantitative data such as stock price, market capitalization, and trading volume come from real-time financial market data systems [0]. Fundamental financial data comes from the company’s financial report disclosures [4]. Market sentiment and capital flow data come from industry statistics [4][5]. News events and technological innovation information come from financial media reports [1][2][3].
