前沿游戏开发制作，储备项目上线可期。公司储备的科幻题材（代号Dreamland）和文明题材（代号LOA）的两款SLG融合类游戏预计将于2024 年下半年在海外发行上线。两款游戏均采用Unity3D 引擎开发，分别立足科幻和文明题材，后续上线表现值得期待。Incident: The company released its 2024 interim report. 24H1 achieved revenue of 3.05 billion yuan, +15.0% year on year, net profit of 0.63 billion yuan, +56.2% year on year; net profit after deducting non-return to mother of 0.62 billion yuan, +61.7% year on year; looking at a single quarter, 24Q2 achieved revenue of 1.56 billion yuan, +8.5% year on year, net profit of 0.34 billion yuan, net profit of 0.33 billion yuan Yuan, +40.7% YoY. Performance was higher than expected.
The long-term development of “integrated research and operation” has deepened the SLG overseas pattern. The company's wholly-owned subsidiary, Shell Mu Gaming's boutique strategy creates high-quality SLG game products, collaborates between R&D and distribution, and focuses on long-term development. Shell games are mainly strategy mobile games, including “Age of Origins,” “War and Order,” and “InfiniteGalaxy.” The customer base covers more than 150 countries and regions around the world, and has developed and deepened overseas mobile game tracks. Shell Game ranked 11th in the 24H1 Chinese mobile game publisher revenue list.
Technology is integrated to increase operational efficiency, and the main game that has gone overseas performed brilliantly. 24H1's game products achieved revenue of 2.43 billion yuan, +12.0% year over year; operating costs were 0.66 billion yuan, +2.1% year over year; the company improved operating efficiency and saved costs, with a gross margin of 72.9%, +2.7pp compared to the same period last year. Among game products, “Age of Origins” saw impressive revenue growth. 24Q1/Q2 ARPU was 89.9/96.4, respectively. Game traffic remained stable, and 24H1 achieved revenue of 1.79 billion yuan (accounting for 73.8%), +21.4% over the same period last year. The main game performed well, and revenue from other major game products remained relatively stable.
Frontier game development and production, reserve projects can be expected to be launched. The company's two SLG fusion games with a sci-fi theme (code name Dreamland) and a civilization theme (code name LOA) are expected to be released overseas in the second half of 2024. Both games are developed using the Unity3D engine and are based on sci-fi and civilized themes, respectively, and the subsequent launch performance is worth looking forward to.
Profit forecasting and investment advice. Net profit due to mother in 2024-2026 is expected to be 1.17 billion yuan, 1.36 billion yuan, and 1.57 billion yuan respectively, corresponding to PE of 15 times, 13 times, and 11 times, respectively; the company's core products perform steadily, the marketing side continues to be optimized, and the software service business contributes to performance flexibility and potential new growth points, maintaining a “buy” rating.
Risk warning: Key product dependency risks, industry policy tightening risks, technology updates and obsolescence risks.