\u3000\u3 China Vanke Co.Ltd(000002) 605 Shanghai Yaoji Technology Co.Ltd(002605) )
Event:
In 2021 Shanghai Yaoji Technology Co.Ltd(002605) total operating revenue was 3.807 billion yuan, yoy + 48.61%; The net profit attributable to the parent company was 574 million yuan, yoy-47.53%; In 2022q1, the total operating revenue is 1.010 billion yuan, yoy + 2.94%; The net profit attributable to the parent company was 92 million yuan, yoy-53.77%. The decrease of net profit attributable to the parent company in 2022q1 was mainly due to the increase of promotion expenses and the increase of R & D investment in mobile game business. At the same time, the company invested in card Amoy in 22q1 and arranged star card business. The growth of new business areas deserves attention.
Make efforts to overseas bingo games and other business layout, and the early investment will release profits in 22h1 and 23 years
The company has been deeply engaged in leisure and puzzle segments to improve its refined operation and big data analysis capabilities. In the past 21 years, the company's game operation revenue was 1.222 billion yuan, yoy + 0.66%, and the gross profit margin was 97.6%, maintaining a high and stable level. At present, the company has sufficient reserve version numbers, a small number of underage players and strong anti risk ability. In the past 21 years, the company has actively arranged the overseas bingo game market. Games such as bingoparty, bingojourney and bingowind have been released to more than 100 countries and regions around the world, with a total of more than 32 million registered users. It is currently the top ranked game of leisure and competitive games in China, and has certain competitiveness in the world. At the same time, China's fishing and fingertip fishing also have strong stickiness and rank high. 22q1 company increases its investment in the marketing of new games and is expected to gradually release profits in 22h2 and 23 years.
With the rapid growth of digital marketing, overseas business cooperation with tiktok can be expected
In 2021, the company's digital marketing revenue was 1.585 billion yuan, yoy + 231.71%, which achieved significant growth under the development and maintenance of new and old customers. The company's digital marketing sector mainly focuses on information flow advertising, forming an Internet marketing team covering today's headlines, Kwai, Tencent guangdiantong and other media platforms. Luming technology, a subsidiary of Yaoji banner, cooperates closely with byte system. In the past 21 years, the net profit of Luming technology was 40.07 million yuan after it was returned to the parent company. In the past 22 years, tiktok increased its commercialization at sea and entered the $100 billion overseas marketing market. As an important agent of byte system, Luming is expected to achieve coordination in the sea business and maintain the sustained and high growth of marketing business.
The poker business is stable, the convertible bond project continues to be promoted, the production capacity is improved, and the leading position is consolidated
In 2021, the poker business revenue was 934 million yuan, yoy + 23.22%. In 2021, the company issued a plan for convertible bonds, which is expected to increase production by 600 million pairs of poker, build Anhui Chuzhou Intelligent Manufacturing Industrial Park and consolidate its leading position in the field of poker.
Investment suggestion: we predict that the company's revenue from 2022 to 2024 will be 51.69/64.23/7.830 billion yuan respectively, with a year-on-year increase of 35.8% / 24.3% / 21.9%, and the net profit will be 683 / 765 / 848 million yuan respectively, with a year-on-year increase of 19.0% / 12.1% / 10.9%. The corresponding closing price PE on April 30 was 8.7 / 7.7 / 7.0 respectively.
Risk tips: macroeconomic downturn, repeated epidemics and weak consumption; Policy supervision risk; Increase in R & D expenses; Rising prices of raw materials; The development of new business is not as expected.
