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Giant Network Group (002558) Fair Value & Analysis

Communication Services · CN · Market cap 46.1B CNY

GN Giant Network Group 002558 · SHE
Price¥29.34
Fair Value¥15.69
Upside-46.5%
Quality75/100
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Mixed Growth
Highly profitable · 37.4% net margin
Low debt · generates free cash flow
1.40% dividend yield
Mixed vs. peers (7/14)
Wide moat 80/100
Evidence: High Range ¥11.77 – ¥19.62 Share as image

Fair value as of: Jul 22, 2026

From 26 valuation models · updated 19 days ago

Fair value updated Jul 22, 2026, revised from ¥16.96 to ¥15.69 (−7.5%) since Jun 25, 2026. Share price +0.9% over the past month.

A strong business, but screening 47% overvalued on our models.

What matters now

  • A high-quality business (quality 75/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (¥19.62). The favourable scenario is already priced in.
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Price vs Fair Value (5 years)

¥50.77 ¥6.93 Fair Value ¥15.69 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 22, 2026.

How to read this chart

60‑month range ¥6.93 – ¥50.77 · fair‑value band ¥11.77 – ¥19.62 · the ¥29.34 price screens above the ¥15.69 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 22, 2026.

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Analysis

Giant Network Group (002558) currently trades at ¥29.34, while our model-based Fair Value estimate is ¥15.69, implying the stock looks roughly 46.5% overvalued today. The Quality Score stands at 75/100 (high quality), in the Communication Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Giant Network Group generated revenue of 6.7B CNY at a net margin of 37.4%. Revenue grew 221.7% year over year. It earns a return on equity of 17.6%. The balance sheet holds a net cash position of 2.0B CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥11.77 (bear case) to ¥19.62 (bull case); at ¥29.34, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 45% below its 52-week high and 49% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -9% fair-value upside, at -47%, 002558 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ¥27.21 ¥47.80 ¥89.42 80
Residual Income ¥7.39 ¥8.58 ¥16.77 76
Rev-Margin DCF ¥14.99 ¥22.88 ¥37.18 74
All 26 models by family
DCF Models
FCF DCF ¥28.72 ¥43.32 ¥89.81 38
Owner Earnings ¥17.37 ¥35.36 ¥73.12 31
5Y Revenue Exit ¥14.75 ¥20.60 ¥32.65 39
5Y EBITDA Exit ¥17.21 ¥25.59 ¥41.92 41
5Y P/E Exit ¥21.74 ¥42.36 ¥70.08 38
10Y Revenue Exit ¥18.75 ¥31.38 ¥37.56 36
10Y EBITDA Exit ¥20.80 ¥36.68 ¥62.56 37
10Y P/E Exit ¥24.10 ¥46.43 ¥82.26 35
Earnings-Based
Graham-Dodd ¥6.28 ¥43.78 ¥61.44 54
Lynch FV ¥17.46 ¥24.94 ¥32.43 50
PEG = 1.0 ¥17.46 ¥24.94 ¥32.43 46
EPV ¥11.78 ¥13.20 ¥14.44 59
Dividend Discount
Gordon GGM ¥2.65 ¥5.51 ¥8.74 70
DDM Multi-Stage ¥2.65 ¥4.64 ¥5.78 61
Multiples
P/E Multiple ¥15.23 ¥20.31 ¥25.39 63
P/S Multiple ¥6.97 ¥9.30 ¥11.62 58
P/B Multiple ¥11.77 ¥15.69 ¥19.62 55
EV/EBIT ¥15.18 ¥19.15 ¥23.13 53
EV/EBITDA ¥12.51 ¥15.58 ¥18.66 54
EV/Revenue ¥8.84 ¥11.23 ¥13.62 43
Asset-Based
NCAV (Graham) ¥4.05 ¥5.43 ¥8.10 50
Growth DCF
Growth DCF ¥27.21 ¥47.80 ¥89.42 80
Rev-Margin DCF ¥14.99 ¥22.88 ¥37.18 74
Economic Profit
Residual Income ¥7.39 ¥8.58 ¥16.77 76
ROIC Compounder ¥14.60 ¥20.70 ¥24.58 72
Growth Earnings
Growth-Adj P/E ¥22.38 ¥31.97 ¥41.56 68

Widest divergence: DCF Models (¥35.36) versus Dividend Discount (¥4.64). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 6.7B CNY
Revenue growth (YoY) +222%
Net margin 37.4%
Return on equity 17.6%
Free cash flow 2.9B CNY FY2025
P/E ratio 18.4
More key figures
Operating margin 48.3%
EPS (TTM) ¥1.32
Dividend yield 1.4%
EPS growth (YoY) +200%
Net cash 2.0B CNY FY2024

Figures from reported company fundamentals · as of Jul 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 75/100

Of which business quality 74 · Market factors (momentum, volatility) 38

Profitability 53
Margins and returns on capital today
Quality Growth 63
Are margins and returns improving?
Cashflow 95
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 63
Disciplined investing over empire-building
Low Volatility 49
Calm price path (market factor)
Momentum 27
Price trend over the last 3–12 months (market factor)
52W Momentum 43
Distance to the 52-week high (market factor)
Net Issuance 52
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Giant Network Group Co., Ltd. research, develops, operates, and sells online games in China and internationally. The company offers client and mobile games; and mobile Internet products. It is also involved in the development and design of computer hardware and software; technical consulting; as well as technical services for computer hardware and software.

Full company description

Giant Network Group Co., Ltd. research, develops, operates, and sells online games in China and internationally. The company offers client and mobile games; and mobile Internet products. It is also involved in the development and design of computer hardware and software; technical consulting; as well as technical services for computer hardware and software. The company is headquartered in Shanghai, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Giant Network Group reported revenue of ¥5.0B in FY2025 versus ¥2.1B in FY2021, a compound +24.2%/yr. Reported net income was ¥1.8B in FY2025, compounding +15.2%/yr from FY2021.

Growth Quality 92/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
5.0B CNY
Latest YoY
+72.7%
Avg. growth/yr (3Y)
+35.3%
Avg. growth/yr (5Y)
+17.9%
Avg. growth/yr (18Y)
+21.2%
Revenue +24.2%/yr
FY21 ¥2.1B
FY22 ¥2.0B
FY23 ¥2.9B
FY24 ¥2.9B
FY25 ¥5.0B
Net income +15.2%/yr
FY21 ¥995M
FY22 ¥851M
FY23 ¥1.1B
FY24 ¥1.4B
FY25 ¥1.8B

002558 screens 47% overvalued. Compare with NetEase, Inc →

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Cite: Fair Value Calculator (2026). "Giant Network Group Fair Value". https://www.fairvalue-calculator.com/stock/002558

Peer Group

Electronic Gaming & Multimedia · 152 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 75 · Top 25%
Fair Value upside −47% · Below median
Return on equity (TTM) 18% · Top 25%
Return on assets 10% · Top 25%
Net margin (TTM) 37% · Top 25%
Operating margin (TTM) 48% · Top 25%
Revenue growth 222% · Top 25%
Dividend yield (TTM) 1.4% · Below median
Debt / equity 0.00× · Lower than median

Valuation Multiples vs Electronic Gaming & Multimedia median · lower = cheaper

P/E (TTM) 18.4× · Pricier than median
P/B 3.00× · Pricier than 75% of peers
P/S (TTM) 6.94× · Pricier than 75% of peers
P/FCF 2.4× · Pricier than median
EV/EBITDA 14.1× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 17
FUTURE 100 · sector 10
PAST 70 · sector 11
HEALTH 100 · sector 99
DIVIDEND 28 · sector 41

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Electronic Gaming & Multimedia stocks, each showing price versus our Fair Value estimate (as of Jul 22, 2026).

Stock Price Fair Value vs Fair Value
NetEase, Inc 9999 HK$202.60 HK$192.74 -5%
Electronic Arts Inc EA $207.27 $76.57 -63%
Take-Two Interactive Software, Inc TTWO $237.04 $60.45 -74%
Roblox Corporation RBLX $57.07 $21.20 -63%
Zhejiang Century Huatong Group 002602 ¥14.04 ¥14.68 +5%
KRAFTON, Inc 259960 240,500 KRW 395,557 KRW +64%
Kunlun Tech Co 300418 ¥44.61 ¥6.87 -85%
International Games System Co 3293 704.00 TWD 568.16 TWD -19%
37 Interactive Entertainment Network Technology Group 002555 ¥19.02 ¥22.29 +17%
Kingnet Network Co 002517 ¥16.69 ¥15.15 -9%

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Frequently asked questions

Is Giant Network Group (002558) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of ¥15.69 versus a price of ¥29.34, about −47% (overvalued).
What is the fair value of 002558?
Our model-based fair value for Giant Network Group is ¥15.69 (as of Jul 22, 2026), built from audited fundamentals. The current price is ¥29.34.
What is the quality score of 002558?
Giant Network Group has a Quality Score of 75/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Giant Network Group (002558)?
Giant Network Group reported trailing-twelve-month revenue of about 6.7B CNY (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 002558?
The net profit margin of Giant Network Group is about 37.4%, meaning it keeps roughly 37.4% of revenue as net income. Based on the latest reported figures.
Does Giant Network Group pay a dividend?
Giant Network Group currently shows a dividend yield of about 1.40% relative to its recent price (as of Jul 22, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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