What happened: on the evening of October 28, 2020, the company released its third quarter report for 2020. The company's 2020Q1-Q3 revenue reached 304 million yuan, down 13.73% from the same period last year. The net profit was 69 million yuan, up 184.54% from the same period last year. The net profit after deducting non-return was 15 million yuan, down 33.50% from the same period last year.
The increase in the company's return net profit in the first three quarters was mainly due to the receipt of 44.3703 million yuan in performance compensation owed by Shanghai Li Heng in this period.
After the split, 20Q3 achieved revenue of 91.1082 million yuan, down 22.10% from the same period last year and 15.08% from the previous year; the net profit from the home was 51.0019 million yuan, up 1213.35% from the same period last year and 166.74% from the previous year; and the net profit after deducting Feifei was 5.0856 million yuan, up 22.65% from the same period last year.
The company's 20Q1-Q3 gross profit margin was 46.67%, down 13.40pct from the same period last year, of which 20Q3 gross profit margin was 47.00%, down 18.03pct from the same period last year, and 9.39pct from the previous year. The company's 20Q1-Q3 net interest rate was 21.38%, an increase of 14.59pct over the same period last year, of which 20Q3 net interest rate was 53.41%, an increase of 50.04pct over the same period last year, and a month-on-month increase of 51.57pct.
The overall cost of the company has dropped significantly. The company's four 20Q1-Q3 fees were 123 million yuan, down 30.55% from the same period last year, and the overall expense rate decreased by 9.77pct to 40.34% compared with the same period last year. Among them, the decline in sales expenses is due to the reduction of sales promotion expenses in the current period. After the split, the company's four 20Q3 fees were 36 million yuan, down 46.54% from the same period last year, 6.44% from the previous month, 39.43% from the previous year, down 18.02pct from the same period last year, and increasing 3.64pct from the previous year.
The net cash flow of 20Q1-Q3 operating activities was 30.1785 million yuan, down 35.42% from the same period last year, accounting for 9.93% of revenue and 43.88% of net profit. The decrease in net cash flow of operating activities is mainly due to the increase of project payment for the purchase of goods in the current period.
Fuchun subsidiary Junmeng self-research, byte overseas only generation of the first heavy masterpiece "Wonderland Legend RO:
The birth of a New Generation was launched on October 15 in Hong Kong, Macao and Taiwan with excellent results. On the first day of launch, the product reached the top of Taiwan's IOS best-seller list for 15 consecutive days; in the Hong Kong market, the product has been ranked first on the IOS best-seller list for 11 days in a row since October 19; in the Macao market, the product has also ranked first on the IOS best-seller list for many times and has been in the top three for a long time.
Investment advice: the company is in line with expectations in the third quarter, and the non-contribution of Q3 44.3703 million performance compensation helps to hedge the impact of the impairment of Q4 assets for the whole year. On October 15, Junmeng, a subsidiary of the company, launched the first serious masterpiece "RO: the birth of a New Generation" overseas, ranking first on the best-selling list of Hong Kong, Macao and Taiwan for a long time, with excellent performance. The product is expected to launch the slowest 21Q1 in Wonderland IP in Southeast Asia as soon as the end of the year. It is expected that a single game will contribute 350 million new streams to the company's Q4 (300 million off-line in Southeast Asia, 500 million on-line). Assuming that the conversion rate of running profit is 16%, it is expected that the contribution of operating profit will be 50 million to 80 million, while the base of operating profit in the second half of last year is very low and high growth can be expected. We expect the company's 20-22 net profit to be 80 million / 450 million / 590 million, corresponding to PE72x/13x/10x, maintaining a "buy" rating.
Risk hints: risks such as project launch or failure to meet expectations, intensified competition in the industry and tighter supervision
