\u3000\u3000 Guangzhou Wahlap Technology Corporation Limited(301011) (301011)
Company dynamics
The company announced the performance forecast for 2021, and it is expected to realize a net profit attributable to the parent company of 50-58 million yuan, with a year-on-year increase of 8.56% – 25.93%; It is estimated that the net profit attributable to the parent company after deducting non-profit is 47-55 million yuan, with a year-on-year change of – 7.07% – 8.75%.
Event comments
Covid-19 epidemic repeatedly affected the performance in the second half of the year
The company’s 21q4 net profit attributable to the parent company is expected to be 4.42-12.42 million yuan, lower than the market expectation, mainly because the covid-19 epidemic is repeated in the second half of 2021, and offline consumption is affected to a certain extent; At the same time, the company strengthened brand publicity, held national E-sports competitions and live broadcasting activities, participated in many industry exhibitions such as games, animation and commercial real estate, and promoted multi-dimensional publicity, improved the company’s brand image and product awareness, which was caused by the increase of relevant promotion expenses.
Vigorously develop card machine business and continue to join heavyweight IP
The company vigorously developed the card machine business. In 2021h1, the company’s animation IP derivatives business achieved a revenue of 81.66 million yuan, a year-on-year increase of 424.78%, and the revenue proportion increased to 32.70% of the total revenue, a year-on-year increase of 18.1 percentage points. At present, the main products of the company’s card machine business are “Baoke dream and Aole” and “Altman fusion battle”. The fifth bullet card of “Baoke dream and Aole” has been in operation in local game halls since December 27, 2021. The card launched this time is “legend’s first bullet”, Among them, the cards with the highest rarity are all composed of various “legendary baokemeng”, which has a strong attraction for baokemeng fans. In addition, the company continues to attract new heavyweight IP franchises. Recently, the company announced that it has obtained the official license from Microsoft and plans to launch the first arcade product of “my world” IP “my world underground arcade” in the Chinese market in the spring of 2022. My world is a world-famous game IP. Its global download volume has exceeded 400 million times, and the monthly active players have reached 126 million, which can be called national game IP. In addition to the card machine business, the company has maintained continuous investment in the field of VR. The company’s new generation of VR entertainment equipment “wild racing 9: racing legend” has been released recently.
Profit forecast
The company has strong competitiveness in the field of game and entertainment equipment. In the short term, it is repeatedly affected by the covid-19 epidemic, and its performance growth is relatively stable. With the gradual decline of the impact of the epidemic in the future, under the heavy IP support of “baokemeng”, “Altman”, the company’s animation IP derivative business is expected to maintain a rapid expansion trend and drive the rapid growth of the company’s overall operating performance. The profit forecast for 2021 was slightly lowered and remained unchanged for 2022 / 2023. It is estimated that the net profit attributable to shareholders of the parent company from 2021 to 2023 will be 55 million yuan, 135 million yuan and 234 million yuan, and EPS will be 64 million yuan, 156 million yuan and 2.70 yuan respectively, corresponding to 73.20, 29.88 and 17.29 times of PE. Maintain the “buy” rating.
Risk tips
Repeated epidemic risk, regulatory policy risk, less than expected growth of animation IP derivatives, bad debt risk
