\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.
Comments:
Q1 the revenue side grew steadily, and changes in personnel investment and investment income affected the profit side
In the first quarter of 2022, the company realized an operating revenue of 1.229 billion yuan, a year-on-year increase of 9.98%; The net profit attributable to shareholders of listed companies was 350 million yuan, a year-on-year decrease of 4.27%; Net profit deducted from non parent company was 333 million yuan, a year-on-year decrease of 6.14%. The year-on-year growth of the revenue side mainly comes from the year-on-year increase in the operation cycle of Yinian Xiaoyao, and the incremental contribution of the online version of Hong Kong, Macao and Taiwan and Xinyou. The year-on-year decline in profit was mainly due to the increase of 270 employees compared with the same period last year and the increase in salary paid; Confirm that the investment income of associated enterprises decreased by 54.418 million yuan, including the impact on the change of shareholding proportion of celadon game; “Ghost Valley eight wastelands” contributed a year-on-year decline in profits. The gross profit margin was 90.63%, with a year-on-year increase of 7.43pct, mainly due to the decrease in the share paid to the developers of “eight wastelands in ghost Valley”. The sales expense ratio was 25.69%, with a year-on-year increase of 2.11pct, mainly due to the increase in the operation cycle of “Yinian Xiaoyao” and the increase in marketing expenses due to the launch of some new games. The rate of administrative expenses was 7.41%, with a year-on-year increase of 1.8pct. The R & D expense ratio 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 and the corresponding increase in personnel expenditure, the number of R & D personnel was 530 by the end of 21. Contract liabilities and other current liabilities totaled 672 million yuan, an increase of 60 million yuan over the end of last year.
The mobile game “Obi island” will start the paid test, and a variety of reserved products have obtained the version number
“Ask” mobile game opened its sixth anniversary on April 22, and the number of new service reservations reached a new high, ranking in the top 10 in the best-selling list. “Yinian Xiaoyao” continued its long-term stable performance, ranking 10th in the best-selling list on average in the first quarter. Thunder game agent “Obi island” mobile game conducted the first round of 48 day Andrews end test on 2.25, and the test performed well. It is planned to open the omni-channel payment test on 4.28, which may be launched in the summer. In addition, the reserve agent products are “dawn elite”, “flowers fall in Chang’an”, “lost four realms”, “project g”, “ancient treasures” (all with edition numbers), as well as “project s”, “Fengshen fantasy world”, “Shendu kitchen king”, etc. Overseas, Yinian Xiaoyao will be launched in Southeast Asia, Japan and South Korea, store legend is expected to be launched in Europe and America, and underground castle 3, wonderful combatant and kingdom inheritance will also be launched overseas.
Investment advice and profit forecast
On the R & D side, the company adheres to the high-quality strategy of “small step and fast run”, converges the layout of the track, focuses on the advantageous categories such as placement, MMO and SLG, operates stably for a long time, makes breakthroughs in self-developed games, makes incremental contributions, continuously enriches the product matrix of agent games, and gradually develops overseas markets. We expect the company to realize a net profit attributable to the parent company of RMB 1.603/18.49/2.115 billion in 22-24 years, corresponding to EPS of RMB 22.31/25.73/29.43 and PE of 15x / 13X / 12x, maintaining the “buy” rating.
Risk tips
The flow of old games in the head is declining rapidly, the launch of new games is less than expected, and the industry policy risk
