\u3000\u3 Shengda Resources Co.Ltd(000603) 444 G-Bits Network Technology(Xiamen)Co.Ltd(603444) )
Core view
The performance is stable, and the core products are still stable. 22q1 company achieved a revenue of 1.229 billion, a year-on-year increase of 9.98%, a month on month increase of 8.42%, a net profit attributable to parent company of 350 million, a year-on-year decrease of – 4.27%, a month on month increase of 32.95%, and a deduction of non attributable net profit of 333 million, a decrease of 6.14%. The increase in the company’s revenue was mainly due to the stable performance of core products such as Xinyou Yinian Xiaoyao, and the year-on-year decrease in the net profit attributable to the parent company and deducted non net profit, which was mainly affected by the increase in costs and the decrease in the investment income of associated enterprises.
At the end of April, the ranking data of Yinian Xiaoyao was better. In the past three months, the ranking of the company’s key mobile games has been stable. Yinian Xiaoyao ranked within 200 on the IOS game (free) list. By the end of April, Yinian Xiaoyao had entered the top 60. According to sensortower, Yinian Xiaoyao ranked sixth on the Appstore game best-selling application list at the end of April, and Yinian Xiaoyao ranked 11th on the Appstore game best-selling list in 2021. In addition, “Moore Manor” also performed well. The game ranked stable at 200 on the IOS game (free) list. Underground castle 3 launched the “black fairy tale” version on April 26, and the world catapult opened its half anniversary celebration on April 19.
“Obi island” opens the internal test, and the new tour is worth looking forward to. According to Qimai’s data, the key new tour “Obi Island: dream country” in 2022 is expected to be officially launched on October 17. The beta version has a taptap score of 8.1. On April 28, “Obi Island: dream country” has started the “reunion appointment” test. The game is not online, and has won many awards, such as the sixth golden gyroscope Award “annual expected new tour Award” and the seventh Blackstone Award “hard core most expected game of the year”.
The version number is restarted, laying the space for long-term research and operation of the company Several works of G-Bits Network Technology(Xiamen)Co.Ltd(603444) ‘s “lost territory”, “flowers fall in Chang’an”, “projectg”, “ancient treasure” and “dawn elite” (with global authorization) have obtained Chinese version numbers, laying the foundation for the company’s long-term performance space.
Risk warning: Xinyou’s running water is less than expected; Fierce product competition; Policy regulatory repression.
Investment suggestion: the company’s high-quality R & D ability and long-term operation ability constitute a strong moat. There are sufficient reserves of games with edition numbers in the short term. Among them, the performance of OBI island is worth looking forward to, and the long-term overseas market is expected to contribute to incremental performance. We continue to be optimistic about the growth potential of the company. According to the latest performance disclosure of the company, we maintain the previous profit forecast. It is expected that the net profit attributable to the parent company in 22-24 years will be 1.735/19.92/2.280 billion, with a growth rate of 18.2% / 14.8% / 14.5%, EPS of 24.14/27.72/31.72 yuan, corresponding to PE of 14 / 12 / 11x, maintaining the “buy” rating.
