Net profit increased by 205.7%, mainly due to endogenous growth and epitaxial acquisitions. The company today released its 2013 annual report: operating income and net profit were 325 million yuan and 50 million yuan respectively, up 75.4% and 205.7% respectively over the same period last year, and earnings per share were 0.20 yuan, an increase of 233.3% over the same period last year. The rapid growth of the company's performance comes from two aspects: 1, the development of its own traditional end and page games field is stable, and the company's net profit growth rate increased steadily in the first three quarters of 13 years. In the fourth quarter, Meifeng Digital and Su Magic Technology contributed nearly 20% of the company's net profit.
During this period, the expense rate is reduced and the management efficiency is improved. The company's 13-year expense rate was 46.8%, down 15.8 percentage points from the same period last year. Among them: 1, the sales expense rate dropped 19.4 percentage points to 26.1%, mainly because the company's advertising investment in the stable page game platform has been greatly reduced. 2. The rate of management expenses decreased slightly by 2.8 percentage points to 23.2%. On the one hand, the company adopts the "product refinement" operation mode, which improves the management efficiency, on the other hand, the increase of option expense amortization and the increase of new acquisition enterprise management expenses increase the overall management expense rate. 3. The financial expense rate has increased significantly by 6.4% to-2.58%, mainly due to the decrease in deposit interest due to the increase in the use of raised funds.
13 years of mobile games hardware and software layout has been completed, 14 years of performance is expected to continue high growth. On the one hand, the company has set up special mobile games companies (the key products include "Xianzhan" and "Dante", which will be launched one after another in the near future). And with Tencent and other distribution channels, China Mobile Limited and other operators, Samsung and other hardware manufacturers have established different levels of deep cooperation, on the other hand, the acquisition of Shanghai Meifeng and Shenzhen Su Meng respectively focus on heavy mobile games and light mobile games ("King 2" under Meifeng has more than one million daily flow) Therefore, 13 years of the company in mobile games, endogenesis and extension have formed a rich layout, 14 years of performance is expected to continue to grow at a high speed.
Investment advice and rating: the company's earnings per share for 14-16 years are expected to be 0.58, 0.93, 1.22 respectively, corresponding to the latest share price of 29.52, and PE is 50.9, 31.7, 24.2 times respectively. Optimistic about the company's 14 years of "endogenous + extension" mobile game performance growth, given the "overweight" rating.
Risk hint: the new game development and operation is not successful and the core R & D personnel are lost.
