\u3000\u3 Shengda Resources Co.Ltd(000603) 444 G-Bits Network Technology(Xiamen)Co.Ltd(603444) )
Event: G-Bits Network Technology(Xiamen)Co.Ltd(603444) ( G-Bits Network Technology(Xiamen)Co.Ltd(603444) . SH) released the performance report for the first quarter of 2022 on April 22, 2022.
Comments:
In 2022, Q1 company realized an operating revenue of 1.229 billion yuan, a year-on-year increase of 9.98%. The operating revenue in this period increased compared with the same period of last year, which was mainly affected by the following factors: (1) Yinian Xiaoyao (mainland version) was launched on February 1, 2021. The operation time in this period was one month longer than that in the same period of last year, and the revenue in this period increased compared with the same period of last year; (2) Products such as Yinian Xiaoyao (Hong Kong, Macao and Taiwan version), the story of the world’s catapult, underground castle 3: Soul poem and Moore Manor have not been launched in the same period of last year, and these products have contributed incremental income in this period; (3) The current revenue of ghost Valley eight wastelands (PC version) decreased significantly compared with the same period of last year.
According to the data of the parent company, the salary per employee in the same period of the previous year increased by about 2.77 billion yuan, which was lower than that of the parent company in the same period of the previous year. According to the data of the parent company in the same period of the previous year, the net profit of the current period was about 1.07 million yuan, which was mainly lower than that of the parent company in the same period of the previous year, and the net profit of the current period decreased by about 1.07 million yuan. (2) The investment income of associated enterprises recognized in the current period decreased by 54.418 million yuan compared with the same period of the previous year, mainly due to the changes in the shareholding ratio of participating companies and the performance of participating companies. (3) Ghost Valley eight wasteland (PC version) is a buyout game. It made a great contribution to the performance in the early stage of launch, and the contribution profit in this period decreased significantly compared with the same period of last year.
In 2022, the gross profit margin of Q1 company reached 90.83%, with a year-on-year increase of 7.43pct, which is mainly due to the company’s adjustment of operating costs and the adjustment of promotion costs to sales expenses. In 2022, the sales expense of Q1 company was 316 million yuan, with a year-on-year increase of 19.81%, and the sales expense rate was 25.69%, with a year-on-year increase of 2.11 PCT, mainly due to the increase in the promotion expenses of Yinian Xiaoyao and some new products. The management expense was 91 million yuan, with a year-on-year increase of 45.16%, and the management expense rate was 7.41%, with a year-on-year increase of 1.80 PCT, mainly due to the increase in the number of employees, resulting in the increase in employee compensation. The R & D expense was 170 million yuan, with a year-on-year increase of 15.88%, and the R & D expense rate was 13.85%, with a year-on-year increase of 0.71 PCT, mainly due to the increase in the number of R & D personnel, resulting in the increase of employee salary.
The performance of the main games “ask for a hand tour” and “a read is free” is still stable, and we look forward to the bright performance of “Obi Island: dream country”. The new version of “ask for a hand tour” continued to be developed. On April 22, it opened the 6th anniversary service. Together with Chen Xiaochun, it brought the 6th Anniversary Theme Song and MV “love on the road”, paid tribute to thousands of road friends, promoted the return of users, and insisted on attracting users with content. The Hong Kong, Macao and Taiwan version of “one mind carefree” continued to shine in the best-selling list, while the mainland version performed stably and continued to contribute incremental performance to the company. In addition, the omni channel payment test of OBI Island: dream country, which is represented by thunder, will be launched on April 28, looking forward to its brilliant performance.
Investment suggestion: the company’s stock games such as “ask for a hand tour” and “a read carefree” have a stable performance, and the game version numbers that can be issued in 22 years are rich in reserves. The long-term operation of “ask for a hand tour” is stable, and the long-term flow continues to maintain a good trend. The 6th anniversary service was opened on April 22, which is expected to further improve the flow; “Yinian Xiaoyao” has maintained its buying volume since it was launched on February 1, 2001. Now it has become a leader in Xiuxian’s category; The 22-year-old thunder agency Obi Island: dream country will open the omni-channel payment test on April 28, and its performance is worth looking forward to. The company also reserves a variety of games such as “dawn elite”, “flowers fall in Chang’an”, “lost territory”, “store legend”, “family story (M66)” and so on, laying the foundation for 23-24 years of performance. We maintain the early-stage profit forecast. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.598/18.28/2.122 billion respectively, corresponding to the valuation of 15.4x/13.5x/11.6x, maintain the early-stage target price of RMB 444.86/share and maintain the “buy” rating.
Risk factors: the performance of core games is less than expected; the online progress of new games is less than expected; industry policy risk: the risk of core brain drain.
