\u3000\u3 China Vanke Co.Ltd(000002) 602 Zhejiang Century Huatong Group Co.Ltd(002602) )
Event:
On March 16, the 6.0 version of national service Final Fantasy 14 “the end of Xiaoyue” operated by Shengqu game under Zhejiang Century Huatong Group Co.Ltd(002602) was officially launched.
Comments:
High quality masterpieces are online, user habits are back, and China’s end game market is warming up. According to the report on China’s game industry in 2021 released by the game working committee, the actual sales revenue of China’s client game market in 2021 reached 58.8 billion yuan, an increase of 5.15% over the same period in 2020, the first growth trend in recent three years. The pick-up of the end game market in 2021 is mainly due to 1) the excellent performance of the newly launched end game masterpieces, such as eternal robbery and Jianwang 3: origin, 2) the rise of the whole platform distribution mode with mobile games as the core, and 3) the return of PC users’ usage habits. We expect that the recovery trend of China’s end game market in 2022 is expected to continue, which is conducive to the success of high-quality end games.
The 6.0 international service of Final Fantasy 14 has verified its excellent performance and is expected to reap a good harvest of reputation and performance. “Final Fantasy 14” is the core end game masterpiece of Japanese game developer squareenix. It was first introduced into China by Shanda game and has a huge user base all over the world. The 6.0 version of “the end of the moon” updated on a large scale and filled with more content, which set the ending for the plot of the past decade and filled the expectations of players. According to the official website, the game opened new maps of the two new cities “old salean”, “razahan”, “maze”, “savinai island”, “sigh sea” and many large-scale tasks, added optional races Vieira (male), two new occupations “sage” and “samarium sickle”, and the upper limit of the role level was raised from level 80 to level 90. “Final Fantasy 14” international service was launched in December 2021 and received unanimous praise from players. The game media ign scored 9 points and was rated as “one of the best plots of” Final Fantasy “in history” and “living up to the name of ultimate fantasy”. Thanks to the excellent performance of the developer “magic” in 20212021, the company’s annual revenue increased significantly by 486.3 billion yen, which was also driven by the excellent performance of “magic” in 20212024. Based on the strong operation strength of Shengqu game and referring to the excellent performance of the international service of version 6.0 of Final Fantasy 14, its national service version is also expected to reap a double harvest of reputation and performance.
Investment suggestion: maintain the “Buy-A” rating. Final fantasy 14: the end of the dawn moon, as a masterpiece of the beginning of the year, has opened the new year of 2022 products. The follow-up “Qingnian”, “legendary world” and “famine: a new home” will be launched one after another to increase the revenue and profit of the game business. It is estimated that the operating revenue of the company from 2021 to 2023 will be 137.8/209.5/25.56 billion, the net profit attributable to the parent company will be 31.1/40.2/5.13 billion, and the corresponding EPS will be 0.42/0.54/0.69 yuan. Considering the valuation premium of the company’s A-share game leader, the corresponding 202218xpe valuation is given, corresponding to the 6-month target price of 9.72 yuan.
Risk tip: Xinyou online is not as expected; Policy supervision risk; Goodwill impairment risk.
