Main points of investment:
Online game development and operation integration, the main business is based on independent research and development of engine technology to develop large-scale multiplayer online games, and the use of independent operation, authorized operation, joint operation of the combination of the way, the operation of self-developed online games. The company has formed an integrated management model of development and operation, which takes the general engine as the technical platform, the project team as the development platform and the parent company as the operation platform.
The company's products are mainly client-side online games, and cover mobile games, web games and other game types, at present, a number of products have been officially operated or are in the testing stage; the company's operation mode is mainly domestic independent operation. and carry on joint operation or authorized operation with domestic and foreign operators, dozens of cooperative operators have been reached.
At present, the company's two PC-end games ("Expedition OL" and "Longwu") are running well, and the company's third-generation PC game "invincible Legend" is currently in the stage of optimization and adjustment and is about to be commercialized. As of December 31, 2015, "Expedition OL" has more than 30 million registered users and players have accumulated more than 1.3 billion yuan; "Longwu" has more than 10 million registered users and players have accumulated more than 400 million yuan; "Invincible Legend" has a total of 146000 registered users and players have accumulated more than 8 million yuan, and the current players' payment rate and retention rate are in good condition.
The funds raised for the project include: three new products of client-side games ("Expedition World", "Dragon Formula" and "looking up to the Sky"), and three new products of Internet pages ("chasing the Deer", "Yuan" and "Chivalry"). Network technology R & D and operation base project, the project plans to build an online game technology R & D and operation base with R & D center, Q1.COM operation platform and data analysis center operation management center; the rest of the funds will be used to supplement the company's operations.
Profit forecast and valuation: we give the company 2016-2018, EPS2.36/2.7/3.24 yuan, corresponding to 40-50 times PE,2016 annual stock price range of 94.4-118yuan.
Risk tips: fierce competition in the industry, product homogenization, new game release is not as expected