Event: 2023Q1-3 achieved revenue of 1.303 billion yuan, yoy+131.47%, return net profit of 166 million yuan, compared with-18 million yuan in the same period last year, deducting non-return net profit of 163 million yuan, and-25 million yuan in the same period last year. Among them, 2023Q3 achieved revenue of 459 million yuan, yoy+109.97%,qoq+4.76%, return net profit of 66 million yuan, the same period last year was-46 million yuan, qoq+1.05%, deducted non-return net profit of 64 million yuan, the same period last year was-46 million yuan, qoq-1.72%, performance slightly lower than we expected.
Game performance flexibility continues to release, and we expect daily chemical business to be a drag on profit performance. 2023Q3's revenue is higher than the same period last year, and the net profit of returning to home and deducting non-return is positive compared with the same period last year. We think that it is mainly due to 1) the company's layout of game distribution business in the same period last year, and the pressure on the current gross profit margin caused by game division and new copyright amortization. As the company's distribution business layout gradually landed and contributed revenue increment, the company's overall gross profit margin increased significantly compared with the same period last year. 2
023Q3's gross profit margin is 65.55% (yoy+54.39pct
Qoq-0.15pct); 2) the game R & D business continues to release its performance driven by the new game product cycle.
From a month-on-month point of view, 2023Q3's revenue increased by 4.76% month-on-month. We believe that it is mainly due to the sustained and sound performance of the game business. The net profit of home ownership increased by 1.05% month-on-month, deducting the non-parent net profit of 1.72% month-on-month, and the growth rate was higher than that of revenue pressure. We believe that it is mainly affected by the provision for inventory price decline and impairment of accounts receivable in daily chemical business. The corresponding asset impairment loss and credit impairment loss of 2023Q3 company are 0.05yuan and 8 million yuan respectively, which are 0.04yuan and 8 million yuan more than 2023Q2 respectively.
The cost control is good, and the expense rate is continuously optimized during the period. The sales expense rate of 2023Q3 Company was 35.56% (yoy+22.24pct,qoq-4.14pct), which increased greatly compared with the same period last year, mainly because the company had just laid out the issuance business in the same period last year, and the corresponding purchase volume declared investment scale was relatively low. Since then, with the initial volume of the issuance business, the company's sales expense rate has risen to a relatively stable stage. The rate of management expenses is 8.15% (yoy-0.61pct,qoq+2.66pct), the rate of R & D expenses is 5.35% (yoy-7.15pct,qoq-1.86pct), and the rate of financial expenses is 0.09%. In the same period last year, the 2023Q2 was-0.91% and 0.10% respectively.
The reserve of the new tour is abundant, pay attention to the progress of the launch of "Boundary Dao Ming". The company's follow-up reserves include "my War League", "Border Dao Ming", "Fog Formula" and other products, among which "Border Border Dao Ming" will be released globally by the overnight Lightyear under byte beat. The game reservation has been opened in July 2023, and as of October 30, 2023, the official website has made more than 1.54 million reservations. We are optimistic about the thickening performance of the company's Xinyou one after another, and pay attention to the overseas launch progress of "Border Jiedao Ming" and the domestic version number.
Profit forecast and investment rating: taking into account the impact of the company's daily chemical business and the slight delay in the promotion of new games under the influence of the external environment, we have lowered our previous profit forecast. It is estimated that the company's EPS in 2023-2025 will be 1.59x2.86x3.21 yuan respectively (the previous price is 1.81pm 3.08x3.56 yuan), and the corresponding share price PE will be twice as much as in 18-10-9. We are optimistic about the flexibility of the company's game business performance and maintain the "buy" rating.
Risk tips: the performance of new games is lower than expected, the recovery of accounts receivable is not as expected, the competition in the industry is intensified, and the industry supervision is becoming stricter.