\u3000\u3 China Vanke Co.Ltd(000002) 602 Zhejiang Century Huatong Group Co.Ltd(002602) )
M & a realized game transformation, and Tencent was promoted to the second largest shareholder. The company was established in 2005 and was originally mainly engaged in auto parts. Through the acquisition of qiku network and Tianyou software in 14 years and Diandian interactive and Shengqu games in 18-19 years, it has developed into the dual main industry of auto parts + Internet games. The company’s business team has accumulated many years of experience in the game industry. At present, a complete game industry chain ecology has been formed. The ownership structure is clear. In March 21, Tencent increased its holdings to 10% and became the second largest shareholder. The board of directors also includes Tencent’s nominated executives. In February 22, the company announced that it planned to buy back 500-1 billion yuan of shares.
Shengqu and Diandian products have a steady flow of water, and “Celebrating more years” was fixed on March 25, 22. In 21 years, Shengqu self-developed “Xiaosen life” topped the Appstore free list on the first day of its launch; Several classic products launched anniversary versions, thickening the company’s performance. In the year of 22, the company plans to launch IP masterpieces such as “Celebrating more years”, “legendary world” and “famine: a new home”, which are expected to contribute to incremental revenue. In terms of overseas operations, the “king of Avalon” and “era of muskets” have been online for more than 4 years, ranking among the top 30 in the overseas revenue list of Chinese mobile games. The self-developed roblox platform meta universe game “livetopia” has been visited 620 million times and has more than 100 million users.
The intermodal transport agreement expands business space and deepens the unique generation cooperation of Tencent games. In November 21, Shengqu signed a combined transport agreement with Tencent, which will issue, promote and operate Tencent’s game products on Shengqu platform, and the cooperation will generate revenue. Tencent will share 20% and Shengqu will share 80%. Tencent’s product advantages combined with Zhejiang Century Huatong Group Co.Ltd(002602) mature issuing experience will bring considerable water supply. Recently, Tencent has successfully represented a number of Shengqu self-developed mobile games, of which the accumulated flow of “hot blood legend mobile version” has exceeded 10 billion yuan, and end game boutiques such as eternal tower “,” Final Fantasy 14 “and” hot blood legend nostalgic clothes “have also successively landed on Tencent wegame. The cooperation mode of the two sides has been upgraded from the independent generation of game products to the cooperative development of IP, and from China to overseas. The company has conducted in-depth cooperation with IEG, TEG, CSIG, CDG and Yuewen group, four of Tencent’s six business groups.
The supreme law ruled that the “legend” IP renewal agreement was valid, and the meta universe community stimulated IP value. In December 21, the supreme law ruled that the renewal agreement between lansha information, a wholly-owned subsidiary of Zhejiang Century Huatong Group Co.Ltd(002602) and yatos, a holding subsidiary of Zhejiang Century Huatong Group Co.Ltd(002602) , on Legend game was valid, and that yatos had a joint ownership of Legend game, Zhejiang Century Huatong Group Co.Ltd(002602) is expected to stably operate legend IP in the Chinese market for a long time. The legendary game has been activated by the open game engine, which provides a more powerful internal game development platform for the developers of the legendary game.
Cooperate with Tencent Huawei to develop IDC business and expand data security business with Westone Information Industry Inc(002268) company. In January, 22, century Longteng, the holding company, reached a strategic cooperation with Westone Information Industry Inc(002268) to help strengthen the privacy and security protection of game data. On February 24, it was announced that Huawei will focus on the “double carbon” goal, accelerate the construction of green data center, and simultaneously respond to the guidance and call of the national “digital computing in the East and digital computing in the west” project. On February 28, it was announced that the integration of Shenzhen data center project, Yangtze River Delta data center project and other related businesses was “cloud data division”. Longrui technology, a joint-stock company of the company, will cooperate with Tencent to complete the construction and operation of Shanghai Songjiang Yangtze River Delta artificial intelligence Supercomputing Center, and the holding company Century Longteng will acquire 50.1% equity of Shenzhen data center.
Investment point of view: we expect the company’s revenue of 21-23 years to be 14.15 billion yuan / 20.36 billion yuan / 24.43 billion yuan respectively, with an increase of – 6% / 44% / 20% respectively. The net profit attributable to the parent company is expected to be 3.09/34.9/4.33 billion yuan, with an increase of 5% / 13% / 24% respectively, and the corresponding valuation is 16x / 14x / 12x. We gave the company a 22 year main business of 20xpe and IDC business of 30xpe, corresponding to the target price of 9.90 yuan, and gave a “buy” rating for the first time.
Risk tip: the online time of Xinyou is less than expected; Intensified market competition; Macroeconomic impact; There is uncertainty risk in the performance of the framework agreement; Reduction risk of major shareholders
