\u3000\u3 Shengda Resources Co.Ltd(000603) 444 G-Bits Network Technology(Xiamen)Co.Ltd(603444) )
"Ask" basically rose steadily. The new game contributed considerable performance increment and maintained the "buy" rating
According to the annual report, in 2021, the company realized an operating revenue of 4.619 billion yuan (year-on-year + 68.44%), a net profit attributable to the parent company of 1.468 billion yuan (year-on-year + 40.34%), and a net profit deducting non attributable to the parent company of 1.226 billion yuan (year-on-year + 36.24%). The increase of net profit attributable to the parent company is mainly due to the high popularity of "asking questions", "asking questions mobile Tour" and the excellent performance of "Yinian Xiaoyao"; The growth rate of net profit deducted from non parent company is lower than that of operating revenue, which is mainly due to the large investment in the early promotion of Yinian Xiaoyao, the low profit margin of products and the fact that new online products such as Moore Manor have not yet generated profits. Based on the performance of 2021, we lowered the profit forecast for 20222023 and added a new profit forecast for 2024. It is predicted that the operating revenue of the company in 2022, 2023 and 2024 will be 54.85 (former value: 55.56) / 65.29 (former value: 68.19) / 7.641 billion yuan respectively, the net profit attributable to the parent company will be 19.61 (former value: 20.60) / 23.57 (former value: 24.42) / 2.797 billion yuan respectively, the corresponding EPS will be 27.28/32.80/38.92 yuan respectively, and the current share price will be 13.7/11.4/9.6 times PE respectively, We are optimistic about the company's "small step fast run" R & D strategy and long-term operation ability, and maintain the "buy" rating.
The increase of sharing cost dragged down the gross profit margin, and the sales expense rate increased due to the promotion investment in the early stage of the new game
The gross profit margin of the company in 2021 was 84.88% (YoY -3.12pcts) and the net profit margin was 31.79% (YoY -6.37pcts). The decrease of gross profit margin is mainly due to the increase of external agency products, resulting in the increase of sharing cost. The sales expense rate was 27.57% (year-on-year + 16.66 PCTs), mainly due to the launch of new games such as "Yinian Xiaoyao", which invested more in marketing and promotion.
The R & D and operation capabilities have been continuously verified, and we are optimistic about the company's ability to create differentiated popular games
The company's self-developed game "Yinian Xiaoyao" ranked 11th on average in the best-selling list of app store games in 2021, up to No. 5 on the list. In 2022q1, the game continued its excellent performance, and the average ranking remained at about No. 10. As of the release date of the report, the company's reserve agent product Obi Island: dream country has reached 5 million reservation users on the whole platform, which is expected to be launched in 2022. We believe that "Yinian Xiaoyao" verifies the company's long-term operation ability and is expected to become a new performance basic sector after "ask", and the subsequent launch of new games may drive the continuous growth of the company's performance.
Risk tip: the flow of old games is declining, the online time of new games is delayed, and the distribution of version numbers is uncertain.
