Event: on April 28, the company disclosed its annual report in 2010. the company's total revenue last year was 1.807 billion yuan, down 6.99% from last year, and its net profit was 753 million yuan, 126.8% from last year. The basic EPS was 0.21 yuan, and the average ROE was 23.7%. On the same day, the first quarterly report of 2021 revealed that the total operating income was 495 million yuan, an increase of 5.5% over the same period last year, and the net profit was 228 million yuan, 4.62% last year. The basic EPS was 0.06 yuan, and the average ROE was 8.0%.
Comments:
Core IP creates long-term traffic scale, efficient advertising operation gains profit base: advertising business ensures the company's profit: in 2020, the company's advertising revenue is 1.383 billion yuan, an increase of 11.68% over the same period last year, accounting for 76.53% of revenue and 82.83% of gross profit. Subsidiary Outfit7 has created and developed the world-renowned parent-child category IP "the talking Tom Cat Family". The casual games based on nurturance and parkour derived from the IP have a wide user base all over the world. By the end of last year, the company's "talking Tom Cat Family" IP series of mobile apps had been downloaded more than 15 billion times worldwide, with 410 million MAU downloads worldwide. According to AppAnnie, in 2020, the company ranked fourth in the world in terms of comprehensive downloads of iOS and Google Play games. Due to the limitations of the variety of games and the age structure of users, revenue from the built-in advertising of the above applications is currently the company's largest source of revenue. In the actual process of developing mobile advertising business, the company has built an advertising control platform Mediation to dynamically adjust the advertising needs of world-famous advertising service providers such as Google, Facebook Inc, Twitter, AppLovin, Smaato, pangolin Advertising Alliance, etc. Through this control platform and big data's analysis technology, the company can optimize and dynamically select marketing advertisements with higher rates. And the advertising content pushed by users of different products is screened in order to maximize the advertising filling efficiency and advertising cash efficiency in the company's application products.
Develop category new games to drive user growth, and actively explore and develop leisure varieties: in 2020, the company's game distribution revenue was 234 million yuan, an increase of 13.74% over the same period last year, accounting for 12.93% of revenue. The company continues to develop and launch a variety of boutiques around the talking Tom Cats Family, including Tom Cat Story, an electronic pet nurturing game, Tom Cat Adventure, IP's first catapult game, and Tom Cat Speed, IP's first racing mobile game. "Tom Cat Story" introduces the multi-role interaction and combination of sandboxie on the basis of the original play method, and has become one of the main games that drive the continuous growth of the company's overall number of active users. According to AppAnnie, the game ranked eighth on the list of the most popular downloadable games in the world in 2020 with six months of outstanding performance. The leisure Mini Game products such as "one Wave of Superman" and "bald Detective 2" launched by the company's daily power team have been launched on Douyin and Kuaishou Technology platforms one after another, and are in good condition after their launch. Among them, "a wave of Superman" launched Douyin Mini Game and ranked first on the platform. At the same time, the company's domestic team has carried out several rounds of tests on mobile application products such as "Tom Cat Wild Party", "Tom Cat Bubble Group", "bouncing Raiders" and "Hot Blood Street Football". Related products will be launched one after another according to the progress of research and development and the availability of version numbers. As of January 2021, "bullet Raiders" has been launched in the domestic Android channel and achieved good market performance in the first month of launch.
Based on the "talking Tom Cat Family" IP, the company has launched a series of animated films, short films and miniseries, which are broadcast in more than 200 countries and regions through YouTube, Netflix and other global mainstream platforms, and are deeply loved by global users. By 2020, the company's "talking Tom Cat Family"
IP series of animated works have been translated into 32 languages and have been viewed more than 72 billion times worldwide. In 2020, the number of new views of IP series of animation works on YouTube exceeded 129 billion, an increase of 114% over the same period last year, and it had three official YouTube accounts with 10 million subscriptions, and earned 41.0651 million yuan in annual revenue.
Steadily promote offline light asset IP derivative business, and add a number of new parent-child parks: the company actively arranges offline indoor parent-child theme parks, theme business complex, IP Hotel Theme and other business services, as well as IP derivatives and licensing business and other scenarios and formats, and steadily advances the strategic development plan of "building Tom cat pervasive IP ecology and building Tom cat parent-child life brand". In 2020, the company successively reached cooperation with partners in many domestic cities, and successively opened a number of IP parent-child theme park partner stores in Ningbo, Zhejiang, Foshan, Shandong, Fuyang, Hangzhou, and Cixi, Ningbo. Relying on the huge influence of IP and the good reputation effect of parent-child park, IP parent-child theme park partner stores in various places are in good operation after opening. Several stores are at the top of the popular list of local parent-child parks on Dianping.com. In addition, the first super-large Tom Cat theme park project, which integrates indoor and outdoor park, hotel, entertainment, catering, shopping and characteristic cultural experience, will be located in the hinterland of Guangdong-Hong Kong-Macau Greater Bay Area, Foshan City, Guangdong Province. Due to the impact of the epidemic, the company's revenue from new business services decreased by 47% in 2020 compared with the same period last year.
We expect the company to achieve an operating income of 2.23 billion yuan from 2021 to 2023, a year-on-year increase of 12.6%, 9.8%, 12.5%, 8.3%, 9.8%, 1.13 million and 10.6%, 17.3%, 15.7%, respectively, corresponding to an EPS of 0.2, 0.3 and 13.5x/11.5x/15.7x.
Give "buy" advice.
Risk tips: the promotion of new tourism is not as expected; the epidemic control of overseas divisions is not as expected; overseas market expansion is not as expected; offline business development is not as expected; goodwill impairment risk
