\u3000\u3 Shengda Resources Co.Ltd(000603) 444 G-Bits Network Technology(Xiamen)Co.Ltd(603444) )
Event: the company released the first quarterly report of 2022, realizing an operating revenue of 1.229 billion yuan, a year-on-year increase of 9.98%, and a net profit attributable to the parent company of 350 million yuan, a year-on-year decrease of 4.27%.
"Yinian Xiaoyao" has strong operation continuity, and "ask for a hand tour" has made steady progress. "Yinian Xiaoyao (mainland Edition)" has been online for more than a year, but it still makes steady contributions to the running water, and the revenue of 22q1 has maintained a year-on-year growth. According to Qimai data, since 22 years ago, Yinian Xiaoyao (mainland version) has ranked ninth in the best-selling list of IOS games on average, with strong operation sustainability. "Ask for mobile games" 22q1 ranked 20 on average in the best-selling list of IOS games, with a year-on-year increase of 2. The sixth anniversary activity was launched on April 22, driving the one-day ranking to the top 6.
The high expense rate and the decline of investment income partially affected the profit performance. The company maintained a high investment in marketing and promotion, and the sales expense rate of 22q1 was 25.69%, with a year-on-year increase of 2.11pct; 22q1 management fee rate was 7.41%, with a year-on-year increase of 1.80pct. In April 21, the company transferred 10.11% equity of celadon digital, and the shareholding ratio was reduced to 23.10%, which had a partial impact on the investment income of associated enterprises. According to the company's announcement, the investment related income of associated enterprises of 22q1 company decreased by 54.418 million yuan year-on-year.
Abundant product reserves and accelerated overseas market layout. Looking forward to 2022 and beyond, among the company's agent product reserves, "Obi Island: a dream country", "dawn elite", "Hualuo Chang'an", "lost four territories" and "ancient treasures" have obtained edition numbers and diversified categories. Among them, "Obi Island: a dream country" has been officially announced to open the omni-channel test on April 28. At the same time, the company actively adjusts its strategy and will further increase its investment in going to sea in the future. In addition to gradually transplanting Chinese mature products to the world, the company has positioned the global market since the beginning of the project, which is expected to open up space for improvement.
Profit forecast and investment suggestions: we expect the net profit attributable to the parent company in 2022 / 23 / 24 to be RMB 1.821/21.86/2.554 billion, with a year-on-year increase of 24.0% / 20.0% / 16.8%. In April, the release of the version number was resumed, the performance certainty was enhanced, and the company's valuation is expected to be repaired and maintain the "buy" rating.
Risk tip: policy risk, aging head games, less than expected new tour flow, and intensified industry competition
