\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 94 Hubei Century Network Technology Inc(300494) )
Key investment points
Performance summary: the company issued the annual report of 2021 and the first quarterly report of 2022. 22q1, the company achieved revenue of 319 million yuan, a year-on-year increase of 6%; The net profit attributable to the parent company was 52.5 million yuan, a year-on-year increase of 36.2%; Deduct non net profit of 52.11 million yuan, with a year-on-year increase of 36.7%; In 2021, the company achieved a revenue of 1.221 billion yuan, an increase of 36.3% over the same period in 2020; The net profit attributable to the parent company was 125 million yuan, a year-on-year increase of 106.9%; The net profit was 16.0 billion yuan, a year-on-year increase of 121.6%. Overall, the company's development trend is good, and its performance meets market expectations.
The IP series of the annals of the Three Kingdoms has strong continuity of operation, and the annals of the Three Kingdoms · strategic edition has a brilliant performance at sea. In 2021, based on the classic Three Kingdoms game IP, the real-time multiplayer online strategy mobile game "Three Kingdoms 2017" has maintained a relatively stable flow since it was launched; At the same time, the "Three Kingdoms · strategic edition" performed well. In 2021, the flow of domestic mobile games in China's local market ranked fourth. In the same year, the game was released in Southeast Asia, South Korea, Japan and other overseas regions. The total revenue of each market ranked among the top 20 in China's mobile game revenue. It is expected to continue to contribute to the growth of industry performance in the future.
The integrated operation system of "platform + content + service" continues to deepen, and the ecological prototype of cloud game platform is taking shape. In 2021, the company will continue to deeply layout the digital entertainment scene and strengthen the integrated operation system of platform, content and service. The product camp of the company's IP operation has expanded steadily, and a new community ecology built around suileyou cloud game platform is taking shape. In 2021, there were 231 new games on the easy play platform throughout the year, 191 games in operation by the end of the year, and more than one million active users in the quarter. The potential for improving the quality and efficiency of Internet marketing business is prominent.
IP operation is basically stable, and reserve projects are ready to go. After years of exploration and development in the field of game IP, the company has formed a set of mature IP operation mode and has good cooperation with famous game IP copyright parties such as Japan glory. In 2021, based on the IP adaptation of glorious tekumo's "era of great navigation 4", the mobile game "era of great navigation: Sea overlord" has been authorized by IP. The full platform reservation was opened on May 17. At present, the development of this game has been basically completed and can be officially launched after obtaining the version number. The reserved IP "true · unparalleled 8 of the three countries" is under development. The IP operation business is basically stable and has sufficient momentum of development. In 2022, the company will launch "forbidden man", "TP", "meet Neverland", "wings of stars" and "tale of four elephants". The future performance increment is worth looking forward to.
Profit forecast and investment suggestions. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 180 million yuan, 230 million yuan and 270 million yuan respectively, and the corresponding PE will be 20 times, 16 times and 13 times respectively. The company is a leading enterprise serving internet entertainment platform, and the business of online entertainment platform is basically stable; The company has wholly acquired Tianxi mutual entertainment. In the construction of a new generation of cloud game platform, it continues to be optimistic about the company's future IP and game operation development; Optimistic about the growth potential of the company's cloud games and maintain the "buy" rating.
Risk tips: the risk of changes in industrial policies, the risk of intensified market competition, the risk that the upgrade progress of cloud game platform may be less than expected, and the performance of Tianxi mutual entertainment may be less than expected
