\u3000\u3 Shengda Resources Co.Ltd(000603) 258 Hangzhou Electronic Soul Network Technology Co.Ltd(603258) )
The core end Tour "dream of Three Kingdoms 2" was selected for the Hangzhou Asian Games, setting off an upsurge of national wind power competition
The company's core end game product "dream of Three Kingdoms 2" was officially selected into the e-sports competition of the 2022 Hangzhou Asian Games in November 2021. The game has won the "China's annual innovative software product", "the top ten most popular client online games of the year", "CGDA best game animation Performance Award", as well as the nomination of the top ten excellent client games of the 2021 games by the China audio and digital Association and the game working committee, The dream of Three Kingdoms 2, together with other well-known E-sports products, was selected for the Hangzhou Asian Games, which is expected to further expand its influence at home and abroad. On April 7, 2022, the annual Strategy Conference of "dream Three Kingdoms 2" was held. The company announced that it would release a new competitive version of "dream Three Kingdoms 2" in June. At the same time, it also announced the digital collection, E-sports ecological layout and strategic cooperation of "dream Three Kingdoms 2" (JD has become the chief strategic partner of "dream Three Kingdoms 2", and JD will deeply cooperate with the Chinese team of "dream Three Kingdoms 2" to establish a JDG team), In the future, the company will continue to improve the e-sports ecological industrial chain with the "dream of Three Kingdoms 2" event as the core, and tell the Chinese story to the world.
The performance of 2022 is expected to be bearish
In 2021, the company realized an operating revenue of 996 million yuan, a year-on-year decrease of 2.7%, a net profit attributable to the parent of 339 million yuan, a year-on-year decrease of 14.19%, and a net profit attributable to the parent of 281 million yuan after deduction, a year-on-year decrease of 13.7%; The company expects that the net profit attributable to the parent company in the first quarter of 2022 will decrease by 24.52% - 34.32% year-on-year. The pre reduction of performance is mainly due to the decline in the recharge flow of online game projects due to the intensification of industry competition and other factors, as well as the fact that the company's "dream Three Kingdoms 2" end game project was selected as the official E-sports event of Hangzhou Asian Games in 2022. In order to publicize the e-sports event of the Asian Games, the advertising cost of the event increased and the performance fell to the ground. In 2021, the company's overseas business grew rapidly. In 2021, its overseas revenue reached 144 million yuan, an increase of 40.36% year-on-year. Its subsidiary, youdong.com, began to go to sea in 2017. The cumulative flow of Huawu Warring States, which is represented by youdong.com, was the top 20 of Chinese Games in the first and second quarters of 2021. With the accumulation of many years of experience in going to sea, youdong.com has established good cooperative relations with Efun, oasis, Youzu, Changyou and other manufacturers, And products in Hong Kong, Macao, Taiwan, Japan, Vietnam, Indonesia and other regions have entered the top 20 of Google Apple's double list. In the future, the company will speed up its overseas layout and further improve its ability to "go global".
The performance of core products is stable, the reserves of new products are abundant, and the performance can pick up
The company attaches importance to product R & D and technological innovation. In 2021, R & D expenses increased by 26.77% year-on-year to 210 million yuan. The company's dianhun intelligent creative incubator is an incubator integrating "incubation, entrepreneurship, investment and financing" specialized in e-sports, games and intelligent creative science and technology enterprises. It adopts the characteristic incubation mode of "industry + capital + base", and has initially formed the atmosphere of digital entertainment industry cluster, In 2021, it was rated as a provincial science and technology business incubator. The company's main game products include "dream of Three Kingdoms" end tour, "dream of Three Kingdoms" mobile tour, "my Xiake", "barbarian people's war", "Huawu Warring States", etc. the water performance is stable. The core end Tour "dream of Three Kingdoms 2" is expected to benefit from the 2022 Hangzhou Asian Games and improve the water performance. In 2022, the company will maintain the vitality of the company's existing main game products and prolong the life cycle of products by constantly upgrading game versions and improving service quality. In addition, the company will continue to cultivate advantageous fields and realize the inheritance and development of competitive product genes. In terms of reserved products, the self-developed products "spiral warrior" and "operation 2 of barbarian people's Congress" have obtained version numbers. The agent products include "Qiling note" and "silent mist". With the subsequent reserved products launched at home and abroad, it is expected to bring new increment to the company's future performance.
Profit forecast
It is predicted that the company's revenue from 2022 to 2024 will be 1.083 billion yuan, 1.199 billion yuan and 1.342 billion yuan respectively, and its EPS will be 1.43, 1.66 and 1.95 yuan respectively. The corresponding PE of the current stock price will be 16.5, 14.2 and 12.1 times respectively, giving it a "recommended" investment rating.
Risk tips
Increased market competition risk, industry policy supervision risk, head game revenue decline risk, new game performance does not meet the expected risk, game product delay on-line risk, sea game product performance is lower than the expected risk.
