IPO purchase proposal:
The company is a leading developer and publisher of mobile games and web games in China. According to iRui.com, the recharge account of China's online game and mobile game market reached 7.6 billion yuan and 1.9 billion yuan respectively in 2012, and is expected to maintain a rapid compound annual growth rate of 21.8% and 75.5% respectively by 2016. The rapid growth of web games and mobile games will bring great opportunities for the company. In addition, the company's distribution platform 91wan has been developing rapidly since its inception, with an average MAUs of 7.5 million in the first half of 2013, a year-on-year improvement.
At present, 20 self-developed web games and 59 proxy web games have been released in 91wan.
According to the preliminary IPO document, the company's revenue is mainly divided into two parts: game research and development and game distribution, which are affected by two key indicators:
They are the average monthly paying users (average MPUs) and the average monthly income of paying users (ARPPU). The average MPUs and ARPPU of the company's game research and development business as of the first half of 2013 were 758000 times and RMB 83 respectively, with an income of RMB 379 million, an increase of 64% over the same period last year, accounting for 66.1% of the revenue. The number of registered players in the game distribution business is 179 million, the average MPUs value is 115000 times, the ARPPU value is RMB 282, and the realized income is RMB 194 million, an increase of 68.7% over the same period last year, accounting for 33.9% of the income.
As of the first half of 2013, the company's income was 570 million yuan, an increase of 65.3% over the same period last year; the gross profit margin was 88.8%; and the net loss in the first half of the year was 240 million yuan, mainly affected by the fair value loss of convertible redeemable preferred shares. the adjusted net profit was 150 million yuan, an increase of 25% over the same period last year.
The share price of the company ranges from 43.50 yuan to 55.0yuan, while the PE of the 2013 half-year is 15.9times to 20.37times, which is higher than the industry average. At present, mobile games are in a stage of explosive growth, and the company's operating data also show that the company is growing rapidly. The company expects to conduct internal tests on at least five web games and six mobile games by the end of 2013. At least 12 web games and 12 mobile games will be internally tested in 2014, and future performance has potential for growth. In view of the fact that the company has a large market share in the industry and good business prospects in the future, investors are advised to subscribe cautiously.