This report is read as follows:
The company already has the operation ability of the whole industry chain of mobile games, and basically realizes the layout of the whole industry chain from the research and development, distribution to operation of the game. Both R & D and distribution have strong product reserves, and the performance is expected to achieve rapid growth.
Main points of investment:
Strategic transformation of the whole industry chain of mobile games, product reserves are worth looking forward to. We believe that the company already has the ability to operate the whole industry chain of mobile games, and both the R & D and issuer have strong product reserves, and do not consider the acquisition of first-time technology for the time being. It is estimated that the net profit attributed to the parent company in 17-18-19 will be RMB 4.1x52max, corresponding to EPS 0.49 / 0.62 peg 0.68, maintaining the target price of RMB 22 and maintaining the "overweight" rating.
Event: the company announced that in the mid-2017 report, operating income was 362 million, up 51.75% from the same period last year, and the net profit attributed to shareholders of listed companies was 110 million, up 52.4% from the same period last year.
The company's R & D level is outstanding, and it is constantly rich in bright spots in the field of ARPG and SLG. The company's subsidiary Youai network research and development ability is outstanding, the reserve "Supreme Master", "the rise of the Empire of the Qin Dynasty", "National Constellation", "Fengshen Daji", "Journey to the West", "Journey to the West" will be launched one after another in the second half of the year. at the same time, the company has represented many well-known games, such as "Soul World Breaking Sky", "Qingyun Formula", "Miracle Slaugher", "Journey to the West", "knife Fire" and so on, to cover all categories of medium and heavy mobile games.
The acquisition of the remaining shares of technology, continue to increase the layout of game distribution channels, the company basically achieved from the game research and development, distribution to the operation of the whole industry chain layout. At present, Science and Technology also has three popular online articles, namely, "Swire King", "arrogant Mad Fairy" and "full Professional Wushu God". IP has global games, film and television and animation adaptation rights. The key product "Swire King", the mobile games developed are expected to be released synchronously in December, creating a new mode of linkage between movies and games. In the second half of 2017, the company is also expected to launch powerful products such as "Qi Tian Zhan Shen", "Yongheng Island", "Great Chronicles" and "devour heaven and earth".
Risk hint: policy risk, new product performance is not up to expectations