\u3000\u3 China Vanke Co.Ltd(000002) 602 Zhejiang Century Huatong Group Co.Ltd(002602) )
Event: on March 8, sensortower released the top 30 revenue ranking of Chinese mobile game publishers in the global App Store & Google play in February 2022, and Diandian interactive ranked 20, which is the new list.
Two main games have led to a brilliant performance of overseas water: from 2h21, the overseas water of family farm adventure Feifei adventure has increased rapidly, and has become the mobile game with the highest income at present; 21.8 the revenue of the RPG mobile game valor legends released in Europe and America also increased rapidly. According to sensortower’s estimate, “valor Legends” IOS revenue in February has reached the level of one million dollars, and is firmly in the top 80 of IOS game bestsellers in the U.S. market.
The Chinese version number has not been finalized yet, and the overseas business is growing determinedly: the company’s overseas business has developed in a balanced way. As of 1h21, the revenue of interactive overseas games accounts for nearly 40% of the total game revenue. Over the past two years, Diandian’s R & D investment has increased. Diandian interactive will cover many categories such as strategy, card, leisure and game in 2022. An SLG product is expected to achieve at least ten million dollars per month and will be launched overseas. The Chinese game version number has not been released since it was released in July 21. The market is worried about the natural decline of the old game, and there is no new game to replace the growth. We believe that the excellent performance of overseas business and rich pipeline reserves are expected to become the baton of performance growth.
Profit forecast and investment suggestions: it is predicted that the EPS in 21-23 years will be 0.43 yuan, 0.54 yuan and 0.67 yuan respectively, and the net profit attributable to the parent company will maintain a compound growth rate of 15.84% in the next three years. Recently, due to the disturbance of external factors and the decline of valuation in the market, we believe that the company has high certainty of performance + leading position + sector valuation repair superposition, which can continue to give the company 20 times PE, corresponding to the target price of 10.8 yuan, and maintain the “buy” rating.
Risk tip: political and policy risks outside China have led to the continued decline of market risk appetite, the supervision of the game industry has exceeded expectations, the online performance of Xinyou is less than expected, and the flow of old games has declined more than expected
