\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 18 Kunlun Tech Co.Ltd(300418) )
Event: on February 18, Kunlun Tech Co.Ltd(300418) holding subsidiary Opera (NASDAQ: OPRA) announced the financial results of 2021. Among them, opera's annual revenue was US $251 million, a year-on-year increase of 52.1%, its net loss was US $15.784 million, and its net profit in the same period of last year was US $179 million.
The number of core users of opera continued to penetrate: in the fourth quarter of 2021, opera Mau reached 344 million, constantly changing to a higher ARPU market. User growth was strongest in the Americas, with 35% and 22% growth in Latin America and North America, respectively, while opera continued to focus on emerging markets. In the fourth quarter of 2021, the total Mau of game browser Opera Gx on PC and mobile terminals exceeded 14 million.
The breakthrough of users in high ARPU value areas brought revenue growth: driven by strong browser performance, opera's core search and advertising revenue increased by 47% year-on-year in the fourth quarter of 2021. Based on the breakthrough of users in high ARPU value areas, the company expects the revenue of opera in 2022 to be between us $300 million and US $310 million, and the adjusted EBITDA is expected to be between us $50 million and US $60 million.
The one-time impairment of nanobank's Indian business resulted in opera's loss for the whole year: the main business of nanobank, which is 42.35% owned by opera, is to operate financial business in emerging market countries. Since the relevant business of nanobank in India was reviewed by the local government regulatory authorities and could not be carried out normally, the company accrued the one-time impairment of nanobank's subsidiary in India, which affected the investment income by $82.6 million, resulting in a loss of annual performance. Based on the consolidated statement of opera, this loss will also have a certain negative impact on the performance of Kunlun Tech Co.Ltd(300418) 2021.
Investment suggestion: we are optimistic about the synergy of Kunlun Tech Co.Ltd(300418) 's opera, star group and other overseas Internet platforms. It is predicted that the company's EPS in 2021 / 22 / 23 will be 1.48, 1.71 and 1.91 respectively, with a target price of 19.5 yuan and an "overweight" rating.
Risk warning: the user's realization does not meet the expectation; Stricter overseas supervision; Competition among products of the same category has intensified.
