Perfect World Co.Ltd(002624) (002624)
Based on the advantages of core categories, the company continued to diversify and maintain the “buy” rating
The company’s MMORPG core category has obvious advantages. According to Gamma data, the company’s MMORPG category market share reached 24.40% in 2020. At the same time, the company focuses on the two core tracks of “MMO + X” and “card + X”, and strives to make breakthroughs and innovations in multiple categories. Open world MMORPG magic tower went online on December 16, which is expected to help the company achieve category breakthrough and drive rapid performance growth. We maintain the profit forecast. It is predicted that the net profit attributable to the parent company in 2021, 2022 and 2023 will be RMB 1.479/2.08/2.931 billion respectively, the corresponding EPS will be RMB 0.76/1.24/1.51 respectively, and the corresponding PE of the current stock price will be 26.1/16.0/13.2 times respectively, maintaining the “buy” rating.
The launch of magic tower is expected to drive the rapid growth of the company’s performance
Since its first exposure in June 2020, magic tower has been tested for four times, and the game quality and market attention have been continuously improved. As of November 28, 2021, the number of reservations on the official website has exceeded 13.65 million, the total number of reservations between taptap and station B has exceeded 2 million, and the taptap score is 6.7. At the same time, with excellent game quality and test data, magic tower has become the recommended product of super stars in the hard core alliance. The huge number of user Reservations and the unique open world MMO game playing method, combined with the company’s experience in market promotion, product efficiency and first purchase volume accumulated by the release of “dream new kill immortal”, make “magic tower” have the potential of explosion. After the game is launched, it is expected to drive the rapid growth of the company’s performance.
Breakthroughs in category and technology may make it possible for the company to move forward to a first-line game manufacturer
“Magic tower” is an important attempt of the company since the transformation of boutique, diversified and international strategy in 2018. Its game features such as open world free exploration, fantasy engine 4.26, light science fiction secondary meta art style and mimicry system are the first attempt of Perfect World Co.Ltd(002624) , and the playing method of open world MMORPG has some meta cosmic elements, Or help the company accumulate experience in product development of metauniverse. Magic tower is expected to help the company achieve category breakthrough and create differentiated high-quality content. In terms of game quality, “magic tower” has completed the iteration and optimization of a large number of game contents within a few months between two tests, which is due to the gradual maturity of the company’s game industrialization system and the construction of a strong technical middle platform. The breakthrough in category and technology may make the company possible to move forward to a first-line big factory.
Risk tip: the flow of classic games is declining, the performance of new games is less than expected, and the policy of the game industry has changed.
