\u3000\u3 China Vanke Co.Ltd(000002) 624 Perfect World Co.Ltd(002624) )
[matters]
The company released the performance express in 2021, realizing an operating revenue of 8.518 billion yuan, a year-on-year decrease of 16.69%; The operating profit was 150 million yuan, a year-on-year decrease of 90.78%; The net profit attributable to the parent company was 371 million yuan, a year-on-year decrease of 76.03%; The basic earnings per share was 0.19 yuan / share, a year-on-year decrease of 76.25%.
The company released the performance forecast for the first quarter of 2022. It is estimated that the net profit attributable to the shareholders of the listed company will be RMB 830 million-850 million, with a year-on-year increase of 78.79% - 83.09%; The net profit deducted from non parent company was RMB 400420 million, with a year-on-year increase of 25.71% - 31.99%.
[comments]
The short-term profit of game business is under pressure, and the loss of film and television business is reduced. In terms of business, affected by the lower performance of some new games and the natural decline of old games, the company's game business realized an operating revenue of about 7.421 billion yuan in 2021, a year-on-year decrease of 19.77%; The net profit attributable to the parent company was about 720 million yuan, a year-on-year decrease of 68.48%. In terms of expenses, during the reporting period, the company increased R & D investment, with R & D expenses of about 2.211 billion yuan, an increase of 39.13% over the previous year. Meanwhile, in order to optimize its overseas business, the company shut down some overseas game projects whose performance did not meet expectations, resulting in a one-time loss of about 270 million yuan. In terms of film and television business, the operating revenue in 2021 was about 950 million yuan, an increase of 1.84% year-on-year; The net loss attributable to the parent company was about 190 million yuan, a decrease of 58.83% over the previous year.
"Magic tower" led to the recovery of performance in the first quarter, and the global layout helped to stabilize growth. In terms of game business, the net profit in the first quarter of 2022 is expected to be RMB 850 million-870 million, with a year-on-year increase of 98.95% - 103.63%. The sharp increase in profit is mainly due to the bright performance of Xinyou and the sale of its North American subsidiary. Among them, the company sold U.S. R & D studios and relevant local distribution teams in Europe and the United States, resulting in non recurring income of about 400 million. After excluding the deduction of non net profit from game business, the net profit was about 440 million-460 million yuan, a year-on-year increase of 32.84% - 38.87%. The company's new tour "magic tower" was put into public beta on December 16, 2021. In the first month, more than ten million new users were added and nearly 500million yuan of running water was added. The performance was gradually released and continued to increase the company's performance. In the next stage, the company will actively arrange games to go to sea, focusing on the two dimensions of "Chinese products to sea + overseas localization development". Among them, the mobile game "dream new kill immortal" was launched in the overseas market on March 17, 2022, and "magic tower" is also expected to be launched in the overseas market in the third quarter, helping the steady growth of the company's performance. In addition, on April 11, the domestic game version number was reopened, and the company has a rich reserve of products, which is expected to usher in a new product cycle. During the reporting period, the film and television business is expected to realize a net profit of about 20 million yuan.
[comments]
Combined with the company's current performance, we lowered the company's profit forecast from 2021 to 2023. After adjustment, the company's operating revenue from 2021 to 2023 was 8.52/98.0/11.17 billion yuan respectively, the net profit attributable to the parent company was 3.7/18.5/2.23 billion yuan respectively, the corresponding EPS was 0.19/0.96/1.15 yuan respectively, and the corresponding PE was 66 / 13 / 11 times respectively. In the long run, the company has strong game R & D capabilities, actively layout global development, and rich reserves of high-quality projects. With the continuous release of new product performance and the restart of edition number, it is expected to usher in a new round of development and maintain the company's "buy" rating.
[risk tips]
Macroeconomic downturn;
The game version number was not obtained as expected;
The performance of online game products is less than expected;
Film and television industry policy risk.
