Main points of investment:
It is suggested that the inquiry price is 37.02 yuan, and the reasonable valuation range is 91.8 to 114.26 yuan. Glacier Network is a domestic development and operation of integrated online game enterprises, focusing on client-side online games, strong profitability.
The funds raised will be used to develop new game products, which will help to further improve the profitability of the company. We predict that the EPS of Glacier Network from 2016 to 2018 is 1.97pm 2.33pm 2.81RMB, and the corresponding issue price is 37.02RMB. Give the company industry an average of 58 times PE and 22.24 times PS, corresponding to the reasonable valuation range of 91.8 to 114.26 yuan.
Focus on client-side online games, good profitability. At present, the company has launched 2 end games and is about to launch 1 end games. The payment rate and retention rate of these three end players are in good condition. The company's PC games are mainly self-operated, with a high gross profit margin. From 2013 to 2015, the company's independent operating income accounted for more than 95% of the operating income, and the gross profit margin exceeded 90%, which is higher than the industry average.
Fine operation under the high-quality PC game is not old. The viscosity of PC players is high and the product life cycle is long. The product cycle of boutique PC games is more than 10 years. MMORPG is still the main component of PC games, and the future growth rate is still guaranteed. The domestic sales revenue of MMORPG games in 2014 was 38.91 billion yuan, accounting for 63.90% of the total market for PC games. It is expected to reach 49.16 billion yuan in 2017, and the market share will increase to 67%.
Rely on the capital market to strengthen the PC end game business, enter the page games, mobile games, bring new profit growth. The funds raised by the company are mainly invested in the development of PC-end game projects, so as to establish the company PC-side game product matrix, disperse the company's revenue sources, and smooth the company's performance volatility. And on the basis of the original technology, enter the mobile game market of page games, which is expected to form a product matrix covering high-quality long-period PC games, page games and mobile games, so as to greatly improve the coverage of the company's game crowd.
Risk hint: product dependence risk, new product marketability risk, market competition aggravating risk
