Main points of investment
Event: the company's 2023Q3 revenue is 1.23 billion yuan, yoy+33.9%; return net profit is 150 million yuan, yoy+47.6%, deducts non-return net profit 130 million yuan, yoy+28.4%. The company's revenue in the first three quarters was 3.57 billion yuan, the net profit of yoy+26.9%; was 560 million yuan, and the net profit of yoy+90.8%; was 520 million yuan, yoy+86.3%. In the first three quarters, the company's digital marketing and game business have achieved both revenue and profit growth.
In the first three quarters, the main businesses have achieved year-on-year profit growth, poker production expansion + new games online is expected to continue to improve performance.
1) in the first three quarters of 2023, the market feedback was good after the update of the company's game version. at the same time, the company optimized the launch and promotion strategy, adopted a stable and targeted launch strategy, and achieved obvious results, achieving both revenue and profit growth. In August, the company launched a new shooting game "Happy Fruit Pie".
2) the business volume of the company's digital marketing sector increased in the first three quarters, resulting in both revenue and profit growth. Luming Science and Technology has promised to deduct the non-return net profit of 2700,350,000,000,000 Yuan from 2020 to 2023, of which 114 million yuan has been achieved in 2020-2022, and the net profit deducted by 2023H1 is 21.032 million yuan.
3) the poker business is stable and benefiting from the rise in unit prices, profits increased in the first three quarters compared with the same period last year. Facing the future, the company plans to expand the production scale of poker business and actively promote the overseas market layout of mobile games.
The increase of marketing business leads to the decrease of gross profit margin, while the performance of cost control is better. The gross profit margin of 2023Q3 company is 30.3% yoymure 9.0pct qoqmure 10.0pct. The decline in gross profit margin is mainly due to the increase in business volume in the digital marketing sector, which leads to an increase in costs. The sales / management / R & D expense rate of 2023Q3 company is 5.7% per cent, 5.5% per cent, 4.8% per cent, respectively. The overall expense rate is significantly lower, so the overall homing net profit still achieves a relatively high growth rate.
Profit forecast and investment rating: the company's fee control effect is remarkable in the first three quarters, and the return net profit has increased rapidly. We maintain the company's net profit of 7.1mm, 83x930 million yuan in 2023-2025. The current stock price corresponds to 2023-2025 PE, which is multiple of 13-12-10, and maintains the "buy" rating.
Risk tips: game regulatory risk, intellectual property protection risk, overseas market policy risk.