\u3000\u3 China Vanke Co.Ltd(000002) 624 Perfect World Co.Ltd(002624) )
Perfect World Co.Ltd(002624) disclosed the 21 year performance express, which is expected to achieve an operating revenue of 8.518 billion yuan, a year-on-year decrease of 16.7%, and a net profit attributable to the parent company of 371 million yuan, a year-on-year decrease of 76.03%; The net profit after deducting non-profit was 104 million yuan, a year-on-year decrease of 90.07%. In 21 years, the company’s game business is expected to achieve a revenue of 7.421 billion yuan, a year-on-year decrease of 19.77%, a net profit of 720 million yuan and a net profit of 256 million yuan after deduction; The film and television business is expected to achieve a revenue of 952 million yuan, a year-on-year increase of 1.84%, a net loss of 199 million yuan and a net profit of 26 million yuan after deduction.
The company also disclosed the performance forecast of 22q1. 22q1 is expected to realize the net profit attributable to the shareholders of the listed company of 830 million yuan – 850 million yuan, with a year-on-year increase of 78.79% – 83.09%; The net profit after deducting non-profit was RMB 400420 million, with a year-on-year increase of 25.71% – 31.99%. Non recurring gains and losses mainly come from the sale of American R & D studios and relevant local distribution teams in Europe and America, resulting in non recurring gains of about 400 million yuan. The company’s 21-year performance express and 22q1 performance forecast met expectations.
In terms of game business, the net profit of the game business of 22q1 company is expected to be RMB 440460million after deduction, with a year-on-year increase of 33-39%. Among them, the public beta of magic tower on December 16, 21 achieved more than 10 million new users in the first month and nearly RMB 500million in the first month, helping 22q1 game performance recover. In terms of film and television business, the company continues to adopt the focus strategy in the initiation and startup of new projects. 22q1 is expected to achieve a net profit of about 20 million yuan, and broadcast TV dramas, including “there were glazed tiles in the past”.
Looking forward to 22 years, the company has rich reserves of new games. In addition to continuing to maintain classic advantage projects, the company focuses on innovation, continuously promotes the upgrading of game strategy, and makes efforts in the direction of game going to sea.
In terms of product reserve, the company’s mobile game products such as “black cat anecdote society”, “dragon eight Part 2”, “Kingdom of morning and night”, “one punch Superman: the world”, “million King Arthur”, “killing immortals 2”, “perfect Shanghai New World Co.Ltd(600628) ,” magic land 2 “and end game products such as” killing immortals world “,” perfect new world “and” have a nice death “are being actively promoted. Linglong Fengshen series and other well-known IP game development work is also actively preparing. In terms of Chinese products going to sea, the mobile game “dream new kill immortal” was launched simultaneously in the overseas market on March 17, 2022. In addition, the “magic tower” mobile game will be tested in many overseas places in the near future, and is expected to be officially launched in the overseas market within this year. Many game products reserved by the company are more suitable for the overseas market than previous products. At the same time, the corresponding distribution team of the company has been adjusted in terms of structure and personnel. The overseas distribution of Chinese products will gradually transition from authorized third-party distribution to independent distribution.
Investment suggestion: Perfect World Co.Ltd(002624) on the basis of continuously expanding the competitive advantages of core categories such as MMORPG, accelerate the implementation of diversification and rejuvenation strategy, and uphold the long-term concept. Although there is short-term performance pressure in the transformation process, with the centralized embodiment of personnel costs and impairment in 21 years, the release of game performance in 22 years and the launch of new products, the company is expected to gradually restore the rhythm of performance growth under the new product cycle. Considering the 21-year performance forecast and the new game rhythm, we slightly adjust the company’s performance. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 371 million / 1908 million / 2111 million yuan (the previous value was 368 million / 2013 million / 2094 million yuan, corresponding to 12.9x / 11.7x PE in 22-23 years, maintaining the “buy” rating.
Risk tip: the online delay of the game, the running water of the game does not meet the expectations, the confirmation of film and television projects does not meet the expectations, and the industry supervision is becoming stricter. The performance forecast and express report are only the preliminary calculation results. Please refer to the performance announcement.
