\u3000\u3 Shengda Resources Co.Ltd(000603) 444 G-Bits Network Technology(Xiamen)Co.Ltd(603444) )
Event: the company released the financial report for 2021, realizing an operating revenue of 4.619 billion yuan, a year-on-year increase of 68.44%; The net profit attributable to the parent company was 1.468 billion yuan, a year-on-year increase of 40.34%; In addition, the company plans to distribute cash dividends of 160 yuan (including tax) to all shareholders for every 10 shares.
Comments:
The end-to-end mobile game of "asking questions" has increased steadily, and "Yinian Xiaoyao" has contributed the main incremental revenue, and the annual performance is in line with expectations. During the reporting period, the company's game business revenue was 4.557 billion yuan, a year-on-year increase of 73.19%, and the gross profit margin was 85.18%, a decrease of 2.94 percentage points. Among them, the revenue generated by independent operation was 2.039 billion yuan, a year-on-year increase of 70.19%, and the gross profit margin was 90.21%, an increase of 0.75 percentage points; The revenue generated by authorized operation was 336 million yuan, with a year-on-year increase of 38.98%, and the gross profit margin was as high as 97.75%, an increase of 0.12 percentage points; The revenue generated by joint operation was 2.181 billion yuan, with a year-on-year increase of 83.15%, and the gross profit margin was 78.53%, a decrease of 6.31 percentage points. From the perspective of specific game products, "Yinian Xiaoyao" performed well in the track of fairy theme placement, ranking 11 on average and 5 on the top of IOS best seller list in 2021 (seven wheat data), contributing to the main incremental revenue of the whole year; "Ask" launched wegame platform and "ask mobile game" opened for the 5th anniversary, and the revenue increased compared with the previous year; Agent games such as Moore Manor, eight wastelands of ghost Valley (PC version), underground castle 3: poem of soul, etc. contribute a certain amount of income.
Sales expenses increased significantly and R & D expenses were properly controlled. During the reporting period, the company's sales expense was 1.274 billion yuan, a year-on-year increase of 325.67%, and the sales rate was 27.57%, an increase of 16.66 percentage points. The substantial increase in the company's sales expenses is mainly due to 1) the launch of new games such as "one mind carefree", "underground castle 3: Soul poem" and "Moore Manor" this year, and more investment in supporting the marketing scheme, operation service and advertising display of Xinyou; 2) Under the long-term operation strategy, continue to carry out marketing and promotion of "ask for a hand tour". The company's R & D expenses were 609 million yuan, a year-on-year increase of 41.35%, and the R & D rate was 13.18%, a decrease of 2.52 percentage points. The absolute value of the company's R & D investment increased, but the R & D rate remained relatively stable, reflecting the strong ability of team management and cost control.
The reserve products are abundant, and the overseas market expansion will be strengthened in the future. The company has reserved the existing version number agent products, including "Obi Island: a dream country", "dawn elite", "flowers fall in Chang'an", "lost four lands", "projectg (code)" and "ancient treasures", etc. The company actively expanded its overseas business and initially opened the overseas market. During the reporting period, the company successfully issued products such as ghost Valley eight wastelands (PC version), ELONA, ezknight and Yinian Xiaoyao (Hong Kong, Macao and Taiwan version). The products that the company has reserved for global distribution include shopheroes legends, rhythm tracks, etc.
Investment suggestion: maintain the "Buy-A" rating. The R & D strategy of small step and fast run cooperates with the operation strategy of super long line to build the company's high product success rate and stable basic market. The gradual expansion of overseas market is expected to bring performance increment. It is estimated that the operating revenue of the company from 2022 to 2024 will be 5.312/66.40/7.636 billion yuan, the net profit attributable to the parent company will be 1.625/18.34/2.090 billion yuan, and the corresponding EPS will be 22.60/25.50/29.07 yuan. 22xpe is valued in 2022, corresponding to the six-month target price of 497.2 yuan.
Risk tip: Xinyou online is not as expected; Risk of stricter policy supervision; Risk of extension of version number issuance
