\u3000\u3 Shengda Resources Co.Ltd(000603) 444 G-Bits Network Technology(Xiamen)Co.Ltd(603444) )
Event:
The company announced the performance of 2022q1: the operating revenue was 1.23 billion yuan, yoy + 10%, the net profit attributable to the parent was 350 million yuan, yoy-4.3%, and the non net profit attributable to the parent was 330 million yuan, yoy-6.1%.
Key investment points:
The company’s 2022q1 revenue and profit meet expectations. Revenue increased by 10% year-on-year, and the change was mainly affected by the rhythm of product launch and life cycle, including: ① Yinian Xiaoyao (mainland version) was launched on February 1, 2021, and 2022q1 increased the operation time by one month compared with 2021q1; ② The contribution increment of new products that have not been launched in 2021q1, such as Yinian Xiaoyao (Hong Kong, Macao and Taiwan version), the story of world ejection, underground castle 3: Soul poem, Moore Manor and so on; ③ The sales volume of ghost Valley (ghost Valley) topped the list for many times in January 2021, and the sales revenue of ghost Valley (ghost Valley) exceeded 1.8 million on the list for many times. Net profit attributable to parent company and net profit deducted from non parent company decreased by 4.3% and 6.1% year-on-year. The main influencing factors are: ① personnel cost (270 employees increased year-on-year); ② The decline in investment income of associated enterprises was 54.42 million yuan; ③ “Ghost Valley eight wastelands (PC version)” contributed less profits.
Recent product trends have been frequent, focusing on the sixth anniversary of “ask for a hand tour” (4.22), the linkage activity of “one mind carefree” (4.29), the channel opening test of “Obi island” (4.28), the launch of “eye of deep space” developed by Yongshi network (4.22), etc. ① The 6th anniversary service of “ask for a mobile Tour” opened on April 22 and invited famous film star Chen Xiaochun as a friend of the same path. The reservation heat before going online exceeded 5.2 million, a record, and exceeded the 360W reservation heat of the 5th anniversary service in 2021. The game currently ranks sixth in the IOS best seller list. In addition, the two official novels “asking for a gun without a heart” and “asking for a road with a heart” were launched on April 22 on four online novel platforms: QQ reading, wechat reading, starting point Chinese network and Himalaya. ② The linkage between Yinian Xiaoyao and the animation biography of mortals and immortals will be officially launched on April 29. ③ Agent “Obi Island: dream country” has opened IOS reservation, and the omni-channel payment test was opened on April 28. It is expected to go online within the year. The number of reservations on the whole platform of the game exceeds 500W, and the number of reservations on the official website exceeds 404w. ④ As of April 22, the second best-selling mobile game of IOS was launched by the company. As a representative of Yongshi network, the mobile game “blue route” developed by the second-dimensional naval battle was launched in June 2017. The game was the highest in 2021, ranking No. 7 in the best-selling list of IOS in China and No. 14 in the revenue list of domestic mobile games going to sea in Japan.
Profit forecast and investment rating: on April 11, the State Press and Publication Administration officially announced the approval information of domestic online games in April 2022, and a total of 45 games were approved, including thunder game tower hunter. We believe that the restart time of the version number is earlier than expected, which promotes the gradual release of performance and valuation correction of leading companies in the game industry. Based on the 2022q1 financial report and the distribution of version number, we adjust the company’s net profit attributable to the parent company from 2022 to 2024 to RMB 1.59/19/2.12 billion, corresponding to EPS of 22.15/26.50/29.43 yuan and PE of 15 / 13 / 12x. The company has strong R & D and innovation ability, and is expected to break through the original ceiling in many emerging categories and create excellent products; Excellent research and transportation strength and reduced dependence on channels; Distribution and R & d go hand in hand to lay the foundation for the success of self-developed products. IP based operation ideas help to create multiple long-term operation products; Improve the overseas strategic position and establish a global project for self-developed products. Based on this, maintain the “buy” rating.
Risk tips: industry policies, intensified competition, exchange rate fluctuations, new products falling short of expectations, rising flow costs, life cycle of old products falling short of expectations, core talent drain, change of player preferences, corporate governance / asset impairment / lifting of prohibition and reduction of holdings, market style switching, downward trend of Industry Valuation center, etc.
