\u3000\u3 China Vanke Co.Ltd(000002) 624 Perfect World Co.Ltd(002624) )
Event: the company released the 21y-22q1 financial report. In 2021, the revenue was 8.518 billion yuan (yoy-16.69%), the net profit attributable to the parent company was 369 million yuan (yoy-76.16%), and the net profit not attributable to the parent company was 102 million yuan (yoy-90.26%); The revenue of 22q1 was 2.128 billion yuan (yoy-4.60%), the net profit attributable to the parent company was 840 million yuan (YoY + 80.99%), the net profit not attributable to the parent company was 414 million yuan (YoY + 30.15%), and the profit became positive month on month (21q4 deducted non-460 million yuan), which was in the median range of performance forecast. The company’s profit distribution plan for 2021 plans to distribute 12 yuan (including tax) to all shareholders for every 10 shares, and the cash distribution amount is expected to be 2.290 billion yuan.
In 2021, the performance of game transformation was under pressure, and the impairment of film and television Universal Film list had a short-term impact. (1) Game business: the revenue was 7.421 billion yuan (yoy-19.77%), and the net profit attributable to the parent company was 720 million yuan (yoy-68.48%). The proportion of core game official clothes increased, driving the gross profit margin of mobile game business + 2.4pct to 70.7% year-on-year. The decline in game profits is mainly due to the increase in labor costs caused by team adjustment, the decline in investment income and the impact of product factors. It is expected that the flow of end game products such as Zhuxian and Perfect World Co.Ltd(002624) International Edition will remain stable, and the flow of old games such as Perfect World Co.Ltd(002624) , Zhuxian mobile tour and xinxiaoao Jianghu will decline slightly; In terms of Xinyou, the performance of “the remains of the God of war” is not as expected. In the middle of the year, the cumulative running water of “dream new killing immortals” was 1.6 billion yuan. The launch of “magic tower” in December generated some front-end expenses, and the profit is expected to be gradually released in 22 years. (2) Film and television business: revenue of 952 million yuan (YoY + 1.84%), net loss of 200 million yuan and gross profit margin of 19.93%. The loss was mainly due to the loss of fair value change caused by the single investment of Universal Pictures.
Xinyou profit release contributes to Q1 performance increment. 22q1 company sold American R & D studios and relevant local distribution teams in Europe and the United States, resulting in a slight decline in revenue, and recognized about 400 million yuan of non recurring income. After excluding the impact of consolidation, the revenue of game business + 23.01% to 1.973 billion yuan, the deduction of non net profit of 22q1 game business + 34.52% to 446 million yuan, and the comprehensive gross profit margin of 22q1 company + 12.1pct to 68.6%. Specifically, the average ranking of IOS best sellers of 22q1 “Zhuxian”, ” Perfect World Co.Ltd(002624) ,” xinxiaoao Jianghu “and” dream xinzhuxian “is 50 / 49 / 111 / 48 respectively, with stable performance. The early release and recycling of Xinyou” magic tower “in December 21 is expected to contribute to the core profit source of Q1. The first month of the launch of “magic tower” exceeded 500 million yuan. The average ranking of IOS best seller list in January, February and March of 22 years was 22 / 32 / 42 respectively. The launch of the new version 2.0 on April 25 is expected to drive the improvement of Q2. The ranking of best seller list on the date of version update increased by 67 to 13. In addition, the international version of magic tower, which is operated by Tencent, has recently been tested in the United States, Canada, Japan, Germany and the United Kingdom. It is expected that 22q3 will be officially launched. It is worth looking forward to the periodic operation of the game at home and abroad in the future.
After adjusting the main business, the global reserve can be enriched in the later stage. 2021 is an important transition period. With team optimization, product strategy upgrading and innovation iteration, the company will focus on the global release of MMO + and card + category games in the future. At present, the overseas team structure has been adjusted in place, dream Zhu Q1 has been launched in some overseas regions, and the international version of magic tower is expected to be launched in Q3. Among other reserved products, mobile games “Tianlong Babu 2”, “the country of morning and night” and “black cat anecdote society” are expected to be launched at home and abroad within the year; The heavy end Tour “xinzhuxian world” (version number obtained) is expected to start testing within this year.
Investment suggestion: considering the influence of product scheduling factors, we slightly lowered the company’s profit expectation. It is estimated that the net profit attributable to the parent company will be 1.937/2.108 billion yuan in 22 / 23 years respectively (previously predicted to be 2.018/2.120 billion yuan), a year-on-year increase of + 424.6% / 8.9%, maintaining the “buy” rating.
Risk warning: policy supervision risk; The product performance is not as expected; Industry competition risk
