The company will be included in the MSCI and the liquidity will improve:
In November 2021, the company was included in the MSCI China small cap index. The inclusion of the MSCI China small cap index reflects the recognition of the company's development potential in the capital market, helps to enhance the company's visibility in the international capital market, and promotes the optimization of the company's shareholder structure and liquidity.
The top sci-fi IP mobile games office is expected to set off a wave of changes in shooting RPG mobile games:
On January 13, 2022, Zulong Entertainment, Tencent Games, Cameron Studio and Walt Disney Company jointly announced the Avatar mobile game "Avatar:Reckoning", a shooting RPG mobile game based on Unreal engine 4, which is expected to be launched on iOs and Android platforms in 2022. We believe that through the cooperation advantages of "strong IP, strong R & D, strong release", it is expected to become a game with international influence.
The rich reserve of new games is expected to boost performance: in the future, the company will launch a number of boutique games, such as Noah's Heart, Women's Game "in the name of Shining", and projects (Western Magic theme SLG). We believe that the company has a number of boutique games to be launched in the past two years, and it is expected to launch SLG game "Project" (original IP) in 2022, MMOPRPG "Heart of Noah", women to the game "in the name of Shining" and SLG game "The Legend Of Three Kingdoms".
It is expected to bring further performance growth.
Be optimistic about the future game launch and push up the performance, but consider the version number to give the holding rating: the company is a leading developer of boutique mobile games in China, actively promoting the integration of R & D and distribution, and continuously deepening the strategy of going out to sea, multi-category and boutique strategy. in the future, with the company's follow-up reserve projects coming online, the performance may usher in a centralized release in 2022. Considering that the launch performance of some products in 2021 is not up to expectations and the launch time of new games has been delayed, we have lowered our full revenue forecast for 2021. In addition, the company continues to invest in R & D and overseas channels, so we expect to lose money for the whole of 2021. In addition, considering that the approval of domestic version numbers has not yet been released, there will still be more uncertainty about the launch of new games in the future. To sum up, we give the company a target price of HK $9.0, corresponding to about 35 times PE in 2022, corresponding to a "hold" rating.