\u3000\u3 China Vanke Co.Ltd(000002) 605 Shanghai Yaoji Technology Co.Ltd(002605) )
Event: Shanghai Yaoji Technology Co.Ltd(002605) ( Shanghai Yaoji Technology Co.Ltd(002605) . SZ) released the annual performance report of 2021 and the performance report of the first quarter of 2022 on April 28, 2022 (Beijing time).
Comments:
Shanghai Yaoji Technology Co.Ltd(002605) in 2021, the revenue reached 3.807 billion yuan, up 48.61% year on year; The net profit attributable to the parent company was 574 million yuan, a year-on-year decrease of 47.53%, and the deduction of non attributable to the parent company was 506 million yuan, a year-on-year decrease of 10.87%. 2021q4 company achieved revenue of 891 million yuan, a year-on-year increase of 19.23%, net profit attributable to parent company of 113 million yuan, a year-on-year increase of 4.50%, deduction of non attributable to parent company of 891908 million yuan, a year-on-year decrease of 46.74%.
In terms of profit margin in 2021, both gross profit margin and net profit margin decreased. The company’s overall gross profit margin in 21 years was 40.68%, down 16.53pct year-on-year. The overall net profit attributable to the parent company in 21 years was 14.90%, with a year-on-year decrease of 29.37pct, mainly due to (1) the high base of gross profit margin and net profit attributable to the parent company in 20 years; (2) The gross profit margin of digital marketing business is low (6.92%), and the proportion has increased from 41.75% in 20 years to 66.22% in 21 years; (3) The gross profit margin of poker business decreased by 2.3 percentage points. The overall gross profit margin of 2021q4 was 44.35%, a year-on-year decrease of 10.71pct. In 2021q4, the net interest rate attributable to the parent company was 12.00%, a year-on-year decrease of 2.88pct. In terms of expenses, in 2021, the sales expenses were 523 million, with a year-on-year increase of 8.86%, and the sales expense rate was 13.74%, with a year-on-year decrease of 5.02 PCT; The management expense was 212 million, with a year-on-year increase of 40.86%, and the management expense rate was 5.56%, with a year-on-year decrease of 0.31 PCT; The R & D expenditure was 219 million, with a year-on-year increase of 58.84%, and the R & D expenditure rate was 5.74%, with a year-on-year increase of 0.37 PCT; The financial expense was 271564 million, a year-on-year decrease of 25.42%, and the financial expense rate was 0.71%, a year-on-year decrease of 0.71 PCT. It is caused by the company’s expense control.
In 2022q1, the company achieved a revenue of 1.010 billion yuan, a year-on-year increase of 2.94%, a net profit attributable to the parent company of 918048 million yuan, a year-on-year decrease of 53.77%, and a deduction of 831337 million yuan not attributable to the parent company, a year-on-year decrease of 54.51%. It is mainly because (1) the net profit attributable to the parent and deduction of non attributable to the parent in 21 years are low, and there is a base effect; (2) Due to the increase of promotion expenses and the increase of R & D investment in mobile game business.
In terms of 2022q1 profit margin, both gross profit margin and net profit margin decreased. The company’s 22q1 gross profit margin was 38.61%, a year-on-year decrease of 6.54pct, and the net profit attributable to the parent company was 7.23%, a year-on-year decrease of 13.23pct. In terms of expenses, the sales expenses of 22q1 company were 194 million yuan, a year-on-year increase of 47.14%, the sales expense rate was 19.17%, a year-on-year increase of 5.76 PCT, the administrative expenses were 469418 million yuan, a year-on-year decrease of 4.31%, the administrative expense rate was 4.65%, a year-on-year decrease of 0.35 PCT, the financial expenses were 5.392 million yuan, a year-on-year increase of 2.38%, the financial expense rate was 0.53%, a year-on-year decrease of 0.00 PCT, the R & D expenses were 57.721 million yuan, a year-on-year increase of 37.74%, and, A year-on-year increase of 1.43 PCT. It is mainly due to the increase of Xinyou online promotion fee.
The traditional game business has developed steadily, and leisure games still maintain a leading position in the industry. “Fishing explodes the sky” ranks the top 5 in the leisure field of IOS best seller list, and “fingertip fishing” ranks the top 20 in the leisure field of IOS best seller list, with strong player stickiness; 3D fishing, which was upgraded and launched at the end of 2021, remained in the top 20 of the best-selling casual games on the iPhone. Overseas game products mainly include bingo party, bingo journey, bingo wild, etc. Among them, “bingo party” and “bingojourney” are the top ranked games in China’s Sea Leisure and competitive games, which have strong competitiveness in the world.
Give full play to the IP advantages of star card and layout the sports culture industry, and the star card track has become a new growth point. The company invests in card hobby, a card trading & issuing platform, with a shareholding ratio of about 38%. In January 2022, the company made a strategic investment in Shanghai ludougao Enterprise Consulting Management Co., Ltd. and deeply participated in the development and operation of card amoy.com and card Amoy app, card issuance and other businesses. In the next five years, the investment and exploration of star card industry will become one of the key development directions of the company. Star card is the main way to realize sports IP, which is of great investment and collection value. The company will use the world’s largest card production capacity and technology and sales channels covering more than one million to promote the development of the primary market business of cardamoy star card. At the same time, it will expand users through short video content marketing and promote the expansion of the secondary market community of cardamoy star card.
Continue to increase internet marketing investment and vigorously promote the development of short video and marketing business. Information streaming media represented by short video is gradually becoming a new growth point of digital marketing. The company’s existing information flow advertising business has covered today’s headlines, Kwai, Tencent guangdiantong and other media platforms. In the future, it will cover more media platforms, tap the value of integrated marketing services, deepen its operation capacity and expand its business scale. The company will continue to explore the short video marketing industry chain, make full use of the advantages of the Shanghai international short video center base under the subsidiary Xiting culture, give full play to the aggregation effect of the short video industry, and tap the growth value brought by the online new economy.
Investment suggestion: the performance of 21q4 and 22q1 of the company is affected by the launch of Xinyou, which is under short-term pressure. However, the traditional main poker business and game business have significant brand advantages and steady development. They are optimistic about the two new runways of the company’s star card and short video marketing in the future. It is recommended to pay close attention to them.
Risk factors: policy supervision risk of card industry; Market competition risk; Network security risk; Overseas market risk; Risk of raw material supply and price fluctuation; The risk of concentration of traffic media suppliers; Core brain drain risk, etc.
