Perfect World Co.Ltd(002624) (002624)
“Magic tower” is expected to be out of the lap with high heat and strong card position
Magic tower, the breakthrough work of the company’s two-dimensional track, opened the public beta on December 16, and the reservation volume on the official website exceeded 15 million. Inheriting the long-term experience in MMORPG track, it marks the determination of the company to expand its category and has strategic significance. Magic tower has strong social attributes, mimicry weapon card pool and other differentiated characteristics. Compared with the traditional two-dimensional ARPG, krypton gold scene is more abundant; After four internal tests and continuous improvement according to feedback, the score increased rapidly after the four tests, and the reputation increased.
When the category diversification breakthrough is carried out, the reserve of high-quality games is sufficient
The company explored multiple categories and launched a variety of cross track boutiques. The innovation of playing methods and category expansion continued, and the new works integrated many elements such as MMO, MoBa, rougelike and so on; The company’s subsequent pipeline reserves are sufficient. In April 2021, the company disclosed 24 games under research at the strategy press conference, involving secondary element, Guoman, women’s orientation and other fields, multi category and multi theme game reserves, and the transformation road is clear.
The prospect of the secondary track is promising, and the game industry is booming for a long time
The two-dimensional game has the characteristics of high player loyalty and strong willingness to pay. With the growth of “generation Z” after 00, the number of Pan two-dimensional users has exceeded 390 million, and the two-dimensional game has a relatively high landscape; Games are an important carrier of culture going to sea. The e-sports industry has been supported by multiple policies, and the prosperity of the industry has not changed; As the earliest realization scenario of the meta universe industrial blueprint, the development of meta universe related technologies will bring new growth drivers to the game industry, ignite new business models and help the long-term development of the sector.
Investment suggestion: maintain the “overweight” rating
Maintaining the profit forecast, it is estimated that the company’s revenue from 2021 to 2023 will be RMB 95.70/123.20/14.872 billion respectively, the net profit attributable to the parent company will be RMB 1.346/23.32/2.801 billion respectively, the EPS will be RMB 0.69/1.20/1.44 respectively, corresponding to the closing price of RMB 21.85/share on December 16, 2021, and the PE will be 32, 18 and 15 times respectively. The company is a game company with strong R & D strength with scarce a shares. At present, the stock price valuation level is at a historical low. With the continuous recovery of future performance and the gradual launch of Xinyou to contribute to the performance, we are optimistic about the stock price rise space driven by the reversal of the company’s fundamental data and maintain the “increase” rating.
Risk statement
Game version number policy shrinkage risk; Xinyou test is less than expected risk; Risk of cancellation of preferential tax policies; Brain drain risk.
