\u3000\u3 Shengda Resources Co.Ltd(000603) 444 G-Bits Network Technology(Xiamen)Co.Ltd(603444) )
The company released the report for the first quarter of 2022, realizing an operating revenue of 1.229 billion yuan, an increase of 9.98% year-on-year; The net profit attributable to the parent company was 350 million yuan, a year-on-year decrease of 4.27%; The net profit attributable to the parent company after deduction was 333 million yuan, a year-on-year decrease of 6.14%; The basic earnings per share is 4.87 yuan.
Key investment points:
Product rhythm affects revenue. The operating revenue of 2022q1 increased by about 10% year-on-year, mainly due to the single machine buyout mode adopted by the PC version of ghost Valley issued by thunder. Since its launch in January 2021, the total sales volume has exceeded 3.9 million units, of which the sales volume in the first month accounts for nearly half. Therefore, the main revenue is mainly reflected in 2021, resulting in a significant year-on-year decrease in Q1 revenue in 2022. However, at the same time, products such as Yinian Xiaoyao (mainland version), Yinian Xiaoyao (Hong Kong, Macao and Taiwan version), world catapult story, underground castle 3: Soul poem and Moore Manor contributed incremental revenue, offsetting the impact of the decline in revenue of ghost Valley eight wastelands (PC version) on the company.
The slight year-on-year decrease in profits was mainly due to: (1) the number of employees increased by 270 compared with the same period of last year, and the salary increased accordingly; (2) The investment income of associated enterprises decreased by 54.418 million yuan compared with the same period of last year; (3) The profits contributed by ghost Valley eight wastelands (PC version) decreased compared with the same period of last year.
The gross profit margin increased significantly and the net profit margin decreased. The gross profit margin of 2022q1 company was 90.63%, with a year-on-year increase of 7.43pct. The main reason is that although the revenue of ghost Valley eight wasteland (PC version) decreased, the share paid to developers also decreased, driving the company's operating cost to decrease by 38.68% year-on-year. On the other hand, the company continued to carry out marketing and promotion activities for products, and promoted the sales expense rate of 2022q1 to increase by 2.11pct to 25.69% year-on-year; The increase in the number of employees promoted the rate of administrative expenses to increase by 1.8pct to 7.41% year-on-year; The R & D expense ratio was 13.85%, with a year-on-year increase of 0.7pct; The exchange loss caused by the decline of the US dollar against the RMB pushed the financial expense ratio up 1.72 PCT to 0.54%. The increase of various expense rates led to a year-on-year decline of 2.79pct to 36.88% in the company's net interest rate in 2022q1.
Contract liabilities continue to increase or will be gradually recognized as income. As of March 31, 2022, the company's contract liabilities are 640 million yuan, an increase of about 55 million yuan compared with the end of 2021. The contract liabilities are mainly the unused recharge and props balance of players and the game pre recharge. It is expected that with the consumption of various recharge and props, this part will be gradually recognized as revenue and profit to promote the growth of subsequent performance.
Various activities will be launched to drive the stable performance of the whole year. "Ask for a mobile game" officially opened its sixth anniversary on April 22. At present, it ranks eighth in the IOS best seller list and has risen to No. 6. At the same time, "Yinian Xiaoyao" continues to maintain good operation. Since its launch, it has ranked 10th in the IOS best seller list on average. The linked version of "Yinian Xiaoyao" and "Legend of mortal cultivation of immortals" will be launched on April 29, which is expected to continue the good performance of the product. On April 28, the mobile game "Obi island" will start the omni channel payment test of Android and IOS. At present, the number of reservations on the official website is more than 4 million, and the number of reservation users on the whole platform is about 5 million.
The company's investment and operation of new products are expected to continue to grow, and the company's investment and verification of new products are expected to be launched. The newly approved products are positioned in the global market and further expand the income space in overseas markets.
It is estimated that the company's EPS from 2022 to 2024 will be 23.11 yuan, 26.48 yuan and 30.05 yuan respectively. According to the closing price of 342.81 yuan on April 22, the corresponding PE will be 14.84 times, 12.94 times and 11.41 times, maintaining the "buy" rating.
Risk tip: the risk of core personnel loss under the talent war in the game industry; Industry regulatory policy risk; The flow of old games is declining; The market performance of the new game online is less than expected; Upward purchase volume and cost
