gist
On August 31, we attended Lianzhong's PlayWPT global product launch. At the launch event, the company unveiled the latest social casino games, including card games and slot games. The main points are as follows:
Lianzhong's layout in the intellectual sports game ecosystem is quite comprehensive, and is expected to pay off in the next few years. Currently, Lianzhong has established 5 major platforms to build its ecosystem, including: 1) Online gaming platforms, which are Lianzhong's traditional business. Lianzhong will continue to provide a better user experience for end users. 2) Global e-sports platform. Through the use of allied e-sports, Lianzhong plans to establish a global e-sports network, including offline e-sports venues and branded events hosted on e-sports venues. 3) Chinese intellectual sports platform. Lianzhong has collaborated with the government and other internet companies (such as Sina, 360, Migu, Tencent, etc.) to launch intellectual sports platforms. 4) WPT. WPT helps Lianzhong carry out overseas penetration. 5) Sports e-commerce platform. Lianzhong established a joint venture with Sports Window to explore opportunities in the field of sports e-commerce, such as ticketing, franchising, etc.
PlayWPT products are expected to drive the company's growth in the second half of the year. Players can already obtain playing cards and slot games through platforms such as Facebook, PC, iOS, and Android.
The goal is to become the best social casino gaming company in the world. With the help of Lianzhong, WPT will be able to launch new games in a short period of time and at the lowest cost. The company hopes that the total turnover will reach $100 million within two years.
2016 guidelines: Revenue of 900 million yuan to 1 billion yuan; profit of about 200 million yuan.
suggestions
The current stock price is HK$3.42. Maintain the recommended rating and target price of 4.8 yuan, based on a price-earnings ratio of 16 times 2016.
risks
Increased competition in the market; uncertainty about new businesses.
