\u3000\u3 Shengda Resources Co.Ltd(000603) 444 G-Bits Network Technology(Xiamen)Co.Ltd(603444) )
The event company released the financial report of 2021: in 2021, the company realized an operating revenue of 4.619 billion yuan, an increase of 68.44% over 2020; The net profit attributable to shareholders of listed companies was 1.468 billion yuan, a year-on-year increase of 40.34%; The net profit deducted from non parent company was 1.226 billion yuan, with a year-on-year increase of 36.24%. Among them, 21q4 achieved a revenue of RMB 1.134 billion, a year-on-year increase of 63.68%, a net profit attributable to the parent of RMB 263 million, a year-on-year increase of 4.48%, and a deduction of non attributable to the parent of RMB 223 million, a year-on-year increase of 13.59%.
The cash flow was in good condition and the sales expenses increased greatly. From the quarter to quarter, the operating revenue of Q2 and the net profit attributable to the shareholders of the listed company were higher than those in other quarters of the year, mainly due to the opening of the grand service for the 5th anniversary of “ask for a hand tour” in the second quarter and the transfer of part of the equity of celadon digital. Q3’s operating income is relatively low, mainly due to the lag in income after the launch of the new tour underground castle 3: the poem of the soul and the story of the world’s catapult, which is not profitable financially. In 2021, the company’s cash flow was in good condition, and the net cash flow from operating activities increased by 57.75% year-on-year to 2.418 billion yuan. The annual sales expenses totaled 1.274 billion yuan, with a year-on-year increase of 325.67%, mainly due to the large number of new games launched in 2021 and the increase of purchase expenses.
The old tour has steadily cast the basic sector, and the new online agent products have excellent performance. The revenue of “asking questions” and “asking questions hand tour” has increased compared with 21 years. Among them, “asking questions” went online on the wegame platform in March 21. Asking questions hand tour launched three versions of new year clothes, anniversary clothes and national day clothes every year, realizing the group return of users at a fixed time point; The 5th anniversary clothing and related series of brand publicity activities launched in April of 21 attracted a large number of players. During the reporting period, the average ranking of “ask mobile game” in the best-selling list of app store Games was 20, up to No. 7 on the list. In terms of agent products, “ghost Valley eight wastelands”, as an open world sandbox fairy repair game on the PC side, topped the steam global hot list for many times after it was launched on the steam platform on January 27, 21. In the first month of its launch, the global sales volume exceeded 1.8 million, and the highest number of online users in the world exceeded 180000; Since the launch of “Moore’s tour of the manor” on June 21, it has attracted more users and formed an effective hand circle; “Underground castle 3: poem of the soul” was launched on October 20, 2001. While retaining the core playing method of the previous work, the work has greatly improved the art quality. Since its launch, it has ranked 43 on average in the best-selling list of app store games, up to No. 6.
Cut into the national style and place the subdivision track, and Yinian Xiaoyao contributes the main increment. Since its launch on February 1, 2021, the ink national style leisure mobile game “Yinian Xiaoyao”, independently developed and operated by the company, has been highly praised by players and highly recognized by the industry. After the game was launched, the R & D and operation teams defined the product iteration idea of combining short frequency updates with periodic large-scale updates, adhered to the promotion strategy of integrating quality and efficiency, and conducted targeted optimization of the game to meet the needs of players in a timely manner. The game has been recommended by the app store for many times, and has won more than 330000 five-star reviews in the app store. The average ranking of the game in the best-selling list of the app store is No. 11, up to No. 5 in the list. By the end of 21, the cumulative number of registered users has exceeded 10 million. In addition, the limited time activity of Huachao Festival launched by the game on March 11, 2022 has been unanimously recognized by players. Q1 revenue increased by 23% month on month, setting a new revenue record one year after it was launched
Rich reserves of game products, multi layout product matrix. As of the annual report, the company has a total of 11 main products in reserve, of which 6 have edition numbers, including Obi Island: a dream country, dawn elite, flowers falling in Chang’an, lost territory, ancient treasures and projectg (code). Among them, the community formed mobile game Obi Island: dream country has obtained 668000 reservations on taptap platform and is expected to be officially launched in 2022; Roguelike shooting Tour “dawn elite” has been authorized worldwide; In addition, the action RPG mobile games “ProjectS” (code), developed by the team of magic yuan blade, has Chinese mainland and Hong Kong, Macao and Taiwan authorized.
Overseas business has been successful for the first time, and investment will be further increased in the future. In terms of overseas market, the company began to explore from transplanting mature game products in China, and has initially opened the overseas market. During the reporting period, the company successfully released products such as ghost Valley eight wastelands (PC), ELONA (Ilona), ezknight (cute Knight), Yinian Xiaoyao (Hong Kong, Macao and Taiwan version) overseas. Overseas launched projects continued to operate stably, among which the strongest snail (Hong Kong, Macao and Taiwan Version) was updated to the anniversary version in June 21, with good feedback from players; The cumulative number of registered users of furysurvivor has exceeded 5.2 million. At present, many products such as Yinian Xiaoyao (overseas version), shopheroes Legends (store legend), underground castle 3 (overseas version), wonderful Combatant (overseas version), Kingdom inheritance (overseas version) are in the stage of reserve and distribution. In the future, the company will increase investment in overseas markets. Except for individual reserved IP products, other self-developed products will be positioned in overseas markets. The company will also continue to attract excellent producers and overseas distribution teams to quickly layout overseas markets.
It is estimated that the company’s net profit attributable to the parent company in 22-24 years is RMB 1.609/2.035/2.293 billion respectively, with a year-on-year increase of 9.55% / 26.50% / 12.68%, the corresponding EPS is 22.39/28.32/31.91 respectively, and the corresponding PE is 16.29x/12.88x/11.43x respectively, which is rated as “recommended”.
The risk indicates the risks of intensified market competition, stricter industrial policies, less than expected launch of new products, rising traffic costs and so on.
