\u3000\u3 Shengda Resources Co.Ltd(000603) 444 G-Bits Network Technology(Xiamen)Co.Ltd(603444) )
Performance review
On April 8, 2022, G-Bits Network Technology(Xiamen)Co.Ltd(603444) released the annual report for 21 years. The revenue in 2021 was 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%. It is proposed to distribute 160 yuan (including tax) cash dividends for every 10 shares in the 21st year.
Comments
The company’s long-term operation ability has been further verified, and the ranking of IOS bestsellers of 21q4 core games is stable: according to the data of Qimai, the best-selling lists of IOS games of 21q4 company’s core Games “ask for a hand tour” and “Yinian Xiaoyao” are stable at 20 / 10 respectively, of which the new online game “Yinian Xiaoyao” in 21 years has been stable at 5-20 in the best-selling list of IOS games as of April 7, which verifies the company’s ultra long-term operation ability of core games. The stable long-term operation of new and old games promoted the revenue growth of 68.44% year-on-year in 21 years
Affected by the strengthening of the launch of “Yinian Xiaoyao”, the sales expenses have increased: the sales expenses of 21q4 were 439 million yuan, an increase of 386.91% year-on-year and 54.22% month on month. We believe that the continuous improvement of the launch of Q4 “Yinian Xiaoyao” has promoted the increase of sales expenses. We believe that the continuous launch reflects that Yinian Xiaoyao has a high ROI, and the strengthening of the launch is expected to promote the continuous growth of revenue.
Contract liabilities remained high in 2021, and attention was paid to the gradual release of subsequent unrecognized Revenue: according to the company’s announcement, the contract liability in 2021 was about 585 million yuan, an increase of 34.63% over 1h2021 and 18.65% over the first three quarters of 2021. This was mainly due to the large amount of unrecognized revenue brought by some games. We believe that with the gradual recognition of this part of revenue, it is expected to further improve the performance in 22 years.
Pay attention to the reserve of follow-up games, among which the key game “Obi Island: dream country” is expected to be launched within this year: according to the announcement, the company still has products with existing editions, including “Obi Island: dream country”, “dawn elite”, “ancient treasure”, “flower falls Chang’an”, among which “Obi Island: dream country” is expected to be launched within this year. The game is adapted from the classic page tour IP “Obi island”, which has also attracted the attention of players, At present, the number of reservation users of the whole game platform is about 5 million.
Investment advice
It is expected that the company’s core games will maintain a stable contribution, and the follow-up company still has a variety of reserve games, of which the key game Obi island is expected to be launched in 22 years, which is expected to promote further performance growth. We estimate that the net profit attributable to the parent company in 22-24 years is RMB 1.855/22.00/2.525 billion respectively, the corresponding EPS is RMB 25.81/30.16/35.14 respectively, and the corresponding P / E is 14.47/12.20/10.63, maintaining the buy rating.
Risk tips
The performance of core games is less than expected; The online progress of the new game is less than expected; Industry policy risk
