Events:
On February 22, 2020, the company released its 2019 results KuaiBao. The company's total operating income was 2.616 billion yuan, down 7.23% from the same period last year. The operating profit was 311 million yuan and the total profit was 318 million yuan, up 47.68% and 30.50% respectively over the same period last year. The net profit belonging to shareholders of listed companies was 281 million yuan, up 17.78% from the same period last year.
Comments:
The company's sports, games, toys and other business sectors develop steadily, and the sports section continues to contribute more revenue.
The company's sports, games, toys and other business coordinated development. In the sports sector, thanks to the club's mature youth training management mechanism and the good performance of the Uefa European League in 2019-2020, the club player transfer and broadcasting rights income increased significantly compared with the same period last year, and led to the increase of the club's overall income. In the fourth quarter, the club changed the first team coach twice and incurred a certain amount of expenditure. On the whole, the income growth of the sports sector has made a great contribution to the continued stability of the company's consolidated income. The company announced on January 8, 2020 that it has completed a capital increase of 50 million euros for the Spaniard Football Club, which will help Spaniards establish more abundant salary space and provide effective support for their subsequent business performance improvement.
The game business explores the cloud game model, and at the same time it has made some achievements in overseas markets.
According to the information on the company's website on January 13, 2020, "Bawangzhiye" began to test the adaptation of the cloud game, launching the cloud game platform "play with pleasure" under the Tencent game to explore the cloud model of the war strategy game. Overseas editions of "The Legend Of Three Kingdoms: the King's career" and "the Age of Heaven" have been launched in overseas markets, while Wu Lei, a Chinese player from the company's Royal Spaniard Football Club, serves as the spokesman for the game. Through the linkage of game IP and sports IP, the company effectively integrates the competitive advantages of various businesses, realizes the superposition effect of multiple businesses, and promotes the high-quality development of the company.
The layout of the company's pan-entertainment platform has achieved remarkable results, and is optimistic about the company's business collaboration and the cash space for sports and games.
The company's sports sector football club assets are relatively scarce, commercial cash space can be expected, while the game is expected to have high growth in the first quarter, although the toy business is affected by the epidemic, it is relieved in an orderly return to work. We estimate that the company's net profit from 2019 to 2021 will be 281 million yuan, 460 million yuan and 513 million yuan respectively, an increase of 17.8%, 63.7% and 11.5% over the same period last year. The corresponding EPS from 2019 to 2021 will be 0.23,0.37 and 0.41 yuan respectively, maintaining the "recommended" rating.
Risk tips: the intensification of the epidemic, the risk of policy change, the follow-up of the game business is not as expected and other risks.