\u3000\u3 Shengda Resources Co.Ltd(000603) 444 G-Bits Network Technology(Xiamen)Co.Ltd(603444) )
Event: the company disclosed its annual report for 21 years on the evening of April 7. The 21-year revenue was 4.619 billion yuan (YoY + 68.44%), the net profit attributable to the parent was 1.468 billion yuan (YoY + 40.34%), and the net profit not attributable to the parent was 1.226 billion yuan (YoY + 36.24%), mainly due to: 1) the launch of Yinian Xiaoyao (mainland version) contributed to the main incremental operating profit; 2) In 21 years, the profits of “asking questions” and “asking questions mobile games” increased slightly; 3) 21q2 gains from transferring part of celadon’s equity. The gross profit margin of 21 years is 84.88% (yoy-1.12pcts), and the gross profit margin of 21q4 is 91.15% (YoY + 1.76pcts). It is mainly because new online games such as Moore Manor, ghost Valley (PC version) and underground castle 3: poem of the soul in 21 years are agent games, which need to be shared with external developers and recognized as operating costs. In the 21st year, the sales expense was 1.274 billion yuan (YoY + 325.67%), and the sales expense rate was 27.57% (YoY + 16.66pcts), which was mainly due to the large investment in the marketing of new games such as Yinian Xiaoyao, underground castle 3: Soul poem and Moore Manor, and the continuous promotion of “ask for a hand tour”. The management fee is RMB 284 million (YoY + 20.73%), and the management fee rate is 6.14% (yoy-2.43pcts). The financial expense is 23 million yuan (yoy-33.29%), and the financial expense rate is 0.49% (yoy-0.76pcts). The R & D cost is RMB 1.809 billion (yopcy + 3.509 billion), and the R & D cost is RMB 1.809 billion (yopcy + 3.52 billion).
Firmly integrate high-quality products, research and transportation, and have rich reserves of new tours in 22 years. In the 21st year, China launched the sandbox leisure game ghost Valley (PC version) (January 27), the self-developed hang-up game Yinian Xiaoyao (February 1), the agent community cultivation game Moore Manor (June 1), the agent dark adventure game underground castle 3 (October 20), and the agent Pinball cultivation Mobile game world catapult (October 26), The profit can be released in 22 years. And reserve a number of mobile games with edition numbers, such as Obi Island: a dream country, dawn elite, flowers falling in Chang’an and ancient treasures. Among them, the community formed mobile game Obi Island: dream country is expected to go online in 22 years. As of April 7, the number of reservation users on the whole platform is about 5 million.
The achievements of going to sea are beginning to show, and the globalization of many products can be expected. 21 years, overseas successfully issued Elona (Yi Luo Na) (up to App Store, second free games in Japan), and the “one time Xiaoyao (Hong Kong, Macao and Taiwan Edition)” (up to App Store, China Taiwan area game top seller list second). For 22 years and beyond, there are many products in reserve, such as Yinian Xiaoyao (overseas version), shop heroes legends, underground castle 3 (overseas version), wonderful Combatant (overseas version), Kingdom inheritance (overseas version), etc. In the future, the company will deeply cultivate and place hanging machines, SLG and other categories, steadily improve the localization and promotion ability of various regions, and cooperate with overseas development companies to provide self-research and development of global market.
High dividends highlight the company’s confidence. In 2021, the company plans to pay a cash dividend of 160.0 yuan (including tax) for every 10 shares, and the dividend is expected to be 1.15 billion yuan. From 2019 to 2021, the company’s dividend amount was 360 / 86 / 1.15 billion yuan respectively, and the dividend rate was 44.4% / 82.4% / 78.3%. The high cash dividend fully fed back to shareholders and boosted market confidence.
Investment suggestion: the profits of Moore Manor will be released gradually in the following quarters, with strong performance stability. We pay attention to the incremental income brought by the subsequent launch of OBI Island: Neverland and the game going to sea. We expect the net profit of the company in 22-24 years to be 1.647 billion / 1.923 billion / 2.171 billion respectively (the previous value was 2.103/2.482 billion in 22-23 years), and the corresponding valuation is 16x / 14x / 12x.
Risk tip: the launch of the project is delayed, the running water does not meet the expectations, the industry supervision is becoming stricter, the listing of celadon is less than expected, and the distribution of edition number is less than expected.
