\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, and achieved a revenue of 1.229 billion yuan in 2022q1, a year-on-year increase of 9.98%; The net profit attributable to the parent company was 350 million yuan, a year-on-year decrease of 4.27%.
The performance of Yinian Xiaoyao is still strong, and the performance in the first quarter remains stable. The overall revenue growth of 2022q1 company is mainly due to: first, Yinian Xiaoyao (mainland version) has a strong performance, which continues to reach a new high in the first quarter of this year, and currently ranks about 10 in the IOS best seller list; Second, the contribution of new products such as Xiaoyao (Hong Kong, Macao and Taiwan version), the story of the world’s catapult, underground castle 3: Poetry of the soul, Moore Manor and so on. By the end of Q1, the balance of the company’s unamortized recharge and props had increased slightly compared with the end of the previous year, of which the scale of contract liabilities had increased by 55 million yuan to 640 million yuan. The decline in net profit attributable to the parent company in the first quarter was mainly due to: first, the number of employees in the current period increased by about 270 compared with the same period of the previous year, driving the increase of management expenses by 283238 million yuan year-on-year; Second, the exchange loss caused by the fluctuation of RMB exchange rate increased by 198445 million yuan year-on-year; Third, the confirmed investment income of associated enterprises decreased by 54.418 million yuan year-on-year. Excluding the above factors such as personnel expansion, exchange loss and reduction of investment income of associated enterprises, the company’s performance has still achieved steady growth.
In the second quarter, the product dynamics were intensive, and attention was paid to the online rhythm of the product after the restart of the Chinese version number. As the cornerstone product of the company, “ask for a hand tour” has opened its 6th anniversary service on April 22; The new black fairy tale version of underground castle 3 was launched on April 26; The key agent product “Obi Island: dream country” (with version number) has opened the omni-channel payment test on April 28. At present, the number of reservations exceeds 5 million. The company adopts the strategy of “running fast in small steps” to reduce costs and improve the efficiency of R & D and innovation. Liming elite (with global authorization), lost four places, Hua Luo Chang’an, project g, ancient treasures, etc. have all obtained the Chinese version number. Shop heroes Legends (store Legends) has obtained the global authorization. Project s has obtained the authorization from Chinese Mainland, Hong Kong, Macao and Taiwan. The rich product reserves provide guarantee for the company’s medium and long-term performance.
Investment advice and profit forecast: we believe that the company adheres to the accumulation of “differentiation” (excellent quality) and “commercialization” (recognized by players) on the road of playing games, and the company’s high-quality and differentiated R & D strength has been verified by asking for mobile games / Yinian Xiaoyao, etc. It is estimated that the company’s revenue in 2022 / 2023 / 2024 will be 5.266 billion yuan / 6.003 billion yuan / 6.723 billion yuan respectively, the net profit attributable to the parent company will be 1.669 billion yuan / 1.891 billion yuan / 2.104 billion yuan respectively, the EPS will be 23.22 yuan / 26.31 yuan / 29.28 yuan respectively, and the corresponding PE will be 14.76 times / 13.03 times / 11.71 times. Based on 2022, the company will be given 18-20 times PE, with the corresponding price range of 417.96 yuan – 464.40 yuan. Maintain the “buy” rating.
Risk warning: stricter policy supervision; Product launch delay; The current performance was less than expected.
