Main points of investment:
IP ecosystem coordinated development, profit growth to maintain triple-digit, sustained high growth, in line with expectations. 1) in the first three quarters of 17 years, the company achieved revenue of 680 million yuan, an increase of 54.9% over the same period last year, and a net profit of 300 million yuan, an increase of 101.2% over the same period last year, mainly due to the growth of real interest network and derivatives business. 2) the company's 17Q3 single-quarter revenue increased by 33.4% to 330 million yuan, and the return net profit increased by 98% to 210 million yuan, continuing to maintain a good trend of high growth. 3) the synergy effect of the company's IP industry chain is gradually magnified. It is estimated that the 17-year net profit of returning to the mother is 3.4-440 million yuan, an increase of 80% over the same period last year.
The gross profit margin rebounded slightly, the cost was well controlled during the period, the net interest rate rose sharply and the asset quality was sound. 1) profit statement side: the company's 17Q3 gross profit margin slightly decreased 0.5pct compared with the same period last year, rising to 39.4% month-on-month, mainly due to the growth of the company's high gross profit game business, which led to the improvement of the company's overall gross profit margin; the sales expense rate decreased to 4.2% year-on-year, and the management expense rate decreased to 12.5% year-on-year, and the expense rate was well controlled during the period. At the same time, due to financial management and equity transfer of subsidiaries, the investment income was 190 million yuan, which greatly increased the company's net interest rate by 9.5pct to 43.4%. 2) balance sheet side: the company's 17Q3 inventory decreased by 5.82 million yuan to 140 million yuan compared with the end of the second quarter, and the inventory quality was relatively stable; accounts receivable increased by 100 million yuan to 380 million yuan compared with the end of the second quarter, mainly due to the growth of the company's derivatives business. 3) Cash flow statement: the operating cash flow of the company's 17Q3 increased by 100 million yuan to 60 million yuan compared with the end of the second quarter, mainly due to the substantial increase in rebates from the company's merchandise sales.
IP ecosystem perfect closed loop, based on IP derivatives to complete the realization. 1) have their own IP+ big-name cooperation, always maintain a leading position.
a. Has its own IP uncle Weibo Corp fans of more than 10 million, has been a successful industrial layout, 17 years is expected to contribute 30 million yuan. The Monster God is very popular. Its cartoon was released in May, and the number of online broadcasts is among the best. The company cooperates with a large number of the world's top IP (Walt Disney Company, Marvel, Nintendo) and bought a stake in JAKKS (19.5%) in May, which is conducive to the company's rapid access to international well-known IP. 2) Game + film and television + media marketing, constantly strengthen the influence of IP. The company builds games, children's dramas and big movies around IP, constantly attracting new customers, cross-promotion and sales. The company acquires the mobile game platform Zhenqu Network to further strengthen the operating strength of the company's game side. At the same time, invest in live broadcast, reading platform and self-media to build a multi-dimensional publicity and operation platform.
Obvious channel advantages, simultaneous efforts at home and abroad. 1) the layout of domestic channels is perfect, and the advantages of both online and offline are complementary. The company sets up leisurely nest (vertical e-commerce) + acquisition of Manlian trade (derivatives sales) + acquisition of Kumi (animation entertainment service platform) + establishment of Jack Simisheng (marketing platform) + investment of 1001 nights (800 + offline stores). Online and offline combination marketing. 2) continuous overseas cooperation to further expand the territory. The company has acquired Agenturen en HandelsmijScheepers B.V, a Dutch downstream channel company, and Costume Craze, an American company, to expand overseas derivatives sales channels. At the same time, the types of channels continue to enrich, not limited to large-scale supermarkets, try cooperative derivatives monopoly channels and R us, and so on.
The company's performance continues to grow with the completion of the cultural and ecological circle of "own IP+ content production + content distribution and operation + new media operation + derivatives development and design + online and offline retail channels". The product category continues to expand, and the future will usher in an outbreak point to maintain the "overweight" rating. As the leader of domestic IP derivatives, the company has become the fourth largest derivatives company in the world and is in an international leading position after the acquisition of Zhenqu Network + equity participation in JAKKS. At the same time, the company's senior executives have increased their holdings four times since May, fully demonstrating their confidence.
We are optimistic that the synergy of the company's future IP industry chain will continue to appear and maintain the profit forecast. The net profit for 17-19 years will be 433 and 527,000,000 yuan, corresponding to the times of PE in 40-33-28, and the "overweight" rating will be maintained.