The company announces 2023Q3 results. 2023Q3 realized revenue of 751 million yuan, an increase of 43.67% over the same period last year, a net profit of 134 million yuan, an increase of 477.16% over the same period last year, and 134 million yuan of non-net profit, an increase of 464.11% over the same period last year. Since the beginning of the year, revenue has reached 1.466 billion yuan, an increase of 12.77% over the same period last year; the net profit of returning to the mother is 57 million yuan, an increase of 216.28% over the same period last year, deducting 53 million yuan of non-return net profit, an increase of 190.90% over the same period last year. Sales expenses increased by 57.46% to 165 million yuan over the same period last year, and the sales expense rate increased from 20.02% to 21.94%, mainly due to the increase in investment in the promotion of the company's game business during the reporting period.
R & D expenditure increased by 157.66% to 42 million yuan over the same period last year, and the R & D expenditure rate increased from 3.15% to 5.64%, mainly due to the increase in R & D investment of the company during the reporting period.
Comments:
1. The launch of new games will lead to performance growth. The Battlefield without Borders issued by the company's own research Tencent exclusive agent was launched at the end of August, and the running water exceeded 100 million yuan in the first month, and the company enjoyed the running water share as the R & D side. "Maple Valley R: the Classic New definition" was launched in three Southeast Asian countries at the end of July, with the flow exceeding 50 million yuan in the first month, and continued to increase in the third quarter with the deepening of the launch strategy and the increase in the number of areas.
2. The cost control of the club and the transfer of players drive the growth of profits. In the third quarter, the company has some control over the cost of the salary policy after the downgrade of the team members and coaches. At the same time, the use of the July-August player transfer window, combined with the team's competitive needs and business plans, the team was adjusted. The transfer, sale and addition of players bring a net income of more than 100 million yuan to the club.
3, the new product reserve is rich, pay attention to the 24-year game product launch rhythm. The mainland version of "Maple Valley R: classic New definition"Adventure Island: the will of the Alliance" has obtained its version number, and the company is actively preparing for pre-launch testing. At the same time, the company reserves IP games such as "fighting through the firmament", "Wonderland Legend" and so on.
4. In 23-24-25, the annual operating income is estimated to be 1.943 billion yuan, the net profit is 0.80 trillion, and the corresponding PE is 51.24X/19.88X/13.70X, maintaining the "recommended" rating.
5. Risk tips: the launch time of new games is not as expected, the flow of old games is declining, and the performance of sports business is not up to expectations.