\u3000\u3 Shengda Resources Co.Ltd(000603) 444 G-Bits Network Technology(Xiamen)Co.Ltd(603444) )
The revenue continued to grow, the profit decreased slightly due to the decrease of investment income, and the “buy” rating was maintained
The company released the report for the first quarter of 2022. During the reporting period, the company achieved an operating revenue of 1.229 billion yuan (year-on-year + 9.98%), a net profit attributable to the parent company of 350 million yuan (year-on-year – 4.27%), a net profit of 445 million yuan (year-on-year + 19.62%) after deducting investment income, and a net profit of 4.54 million yuan (year-on-year + 16.70%) after deducting investment income of associated enterprises. The performance of the company’s core business was stable, and the net profit attributable to the parent decreased slightly, mainly due to the decrease in investment income of associated enterprises and the increase of about 270 employees over the same period in 2021, resulting in the corresponding increase in salary. Based on the company’s performance, we lowered the profit forecast for 20222024. It is predicted that the operating revenue of the company in 2022, 2023 and 2024 will be 5.285/61.29/69.41 (the previous value is 5.485/65.29/76.41) billion yuan respectively, the net profit attributable to the parent company will be 1.752/20.30/23.57 (the previous value is 1.961/23.572797) billion yuan respectively, the corresponding EPS will be 24.38/28.25/32.80 yuan respectively, and the corresponding PE of the current stock price will be 15.3/13.2/11.4 times respectively, We are optimistic about the company’s high-quality game R & D and long-term operation capabilities, as well as the online performance of new products in the future, and maintain the “buy” rating.
The gross profit margin of the company has increased, and the expense rate has increased steadily during the period
In 2022q1, the gross profit margin of the company was 90.63% (year-on-year + 7.43pct). The increase in gross profit margin was mainly due to the decrease in the share paid by the company to the R & D providers of ghost Valley eight wastelands. The company’s sales expense rate was 25.69% (year-on-year + 2.11pct), and the increase in sales expense rate was caused by the company’s increase in game promotion in order to cooperate with the limited time activity of the flower Dynasty festival of Yinian Xiaoyao. The company’s management expense rate was 7.41% (year-on-year + 1.8pct), and the increase in management expense rate was mainly due to the increase in the number of employees and the corresponding increase in salary.
The performance of Yinian Xiaoyao is stable, and we look forward to the considerable performance increment brought by the launch of OBI Island: dream country
Since its launch on February 1, 2021, Yinian Xiaoyao has continued to perform well. According to sensortower data, Yinian Xiaoyao set a new revenue record in March 2022, with China’s IOS end revenue reaching US $16 million. According to taptap, the company’s agent mobile game “Obi Island: dream country” will open the omni-channel test on April 28, and plans to open the test in 2022. We believe that Yinian Xiaoyao has verified the long-term operation ability of the company and helped to thicken the basic performance of the company. Obi Island, as a classic IP with a history of 13 years, has accumulated a large number of IP users. The launch of OBI Island: dream country is expected to contribute considerable performance increment to the company.
Risk tip: the flow of old games is declining, and the online time of new games is delayed or the performance is less than expected.
