CMGE(00302.HK):UNVEILING CMGE'S GAME-CHANGING EVOLUTION;FROM IP AGGREGATOR TO SELF-DEVELOPED POWERHOUSE
CMGE(00302.HK):UNVEILING CMGE'S GAME-CHANGING EVOLUTION;FROM IP AGGREGATOR TO SELF-DEVELOPED POWERHOUSE
We initiate with a "Buy" rating and a TP of HK$2.67. We anticipate that CMGE's (the "Company") total revenue will see YoY growth of 33.8%, 59.7%, and 10.6% in 2023-2025, respectively. We adopt relative valuation based on PE ratio with twelve selected Hong Kong-listed companies mainly operating game business as CMGE's peers. The weighted average PE ratio for the peers group in 2024 is 16.0x and we value the Company at 13.0x PE ratio for 2024, estimating a market capitalization of around HK$7.3 bn.
我們以 “買入” 評級開始，目標價爲2.67港元。我們預計，在2023-2025年，CMGE（“公司”）的總收入將分別同比增長33.8％、59.7％和10.6％。我們採用基於市盈率的相對估值，12家精選的香港上市公司與CMGE的同行一樣，主要經營遊戲業務。2024年同業集團的加權平均市盈率爲16.0倍，我們對公司的估值爲2024年市盈率的13.0倍，估計市值約爲73億港元。
As a seasoned player in the Chinese gaming industry, CMGE has leveraged its deep industry expertise to amass a rich and valuable portfolio of intellectual properties (IPs). CMGE leverages efficient production pipelines through development partnerships to monetize its IPs.
作爲中國遊戲行業經驗豐富的玩家，CMGE利用其深厚的行業專業知識積累了豐富而有價值的知識產權（IP）組合。CMGE 通過開發合作伙伴關係利用高效的生產渠道來實現其 IP 的貨幣化。
We believe that CMGE's in-house game development capabilities are poised to redefine market perceptions with the upcoming release of two games, marking a significant departure from historical doubts surrounding CMGE's self-development prowess. CMGE, known for prioritizing game quantity over self-developed quality, has shifted its focus to improving in-house development capabilities over the past three years. This shift is marked by the acquisition and integration of Beijing Wenmai Hudong Technology Company Limited and the expansion of Mantianxing Studio for the development of Sword and Fairy World. The forthcoming release of two games from these teams is expected to surpass market expectations, solidifying CMGE's new development capabilities.
我們認爲，隨着即將發佈的兩款遊戲，CMGE的內部遊戲開發能力有望重新定義市場認知，這與歷史上對CMGE自我開發實力的疑慮大相徑庭。CMGE以優先考慮遊戲數量而不是自主開發質量而聞名，在過去三年中，它已將重點轉移到提高內部開發能力上。這種轉變的特點是收購和整合北京文邁湖東科技有限公司，以及擴建滿天星工作室，用於開發《仙劍世界》。預計這些團隊即將發佈的兩款遊戲將超出市場預期，鞏固CMGE的新開發能力。
Catalysts: 1) New release of CMGE's in-house developed games; 2) positive industry reviews for CMGE's games in operations; and 3) acquisition of new game copyright approval by the Company.
催化劑：1）CMGE內部開發的遊戲的新版本；2）對CMGE在運營中的遊戲給予積極的行業評價；3）獲得公司對新遊戲版權的批准。
Risks: 1) New projects of game development may not progress as expected; and 2) uncertainties in the policy of Chinese game industry.
風險：1）遊戲開發的新項目可能無法按預期進展；2）中國遊戲產業政策的不確定性。
譯文內容由第三人軟體翻譯。