Century Huatong (002602) In-depth Research Report: Game Leader Shows Embryo
The acquisition of Shanda Games, the first game stocks appeared.
The main business of the company’s predecessor was auto parts, and it successively acquired Qiku Network, Tianyou Software, Xiamen Quyou, and Little Interactive to achieve transformation. Software service revenue accounted for 64%. In 2019, the company acquired Shanda game transactions for 29.8 billionIf the case is passed, the company will become the first gaming stock of A shares.
Revenue in 2018 increased by 131% to 80 in one year.
7.4 billion, with a net profit of 10.
At present, the auto parts business is stable, and game revenue is growing steadily.
The grand game “Legendary” is still old, and the “Dragon Valley World” mobile games in 2019 may bring a huge increase.
Shanda Games’ “Legend of Blood” and “Legendary World” have been online for many years, and the monthly flow is stable, 南京桑拿网 reaching 37 million and 16 million, respectively.
“Legendary Department” 15 years of IP accumulation, page games, mobile games licensing income is rich.
Relying on the expected IP, the company has fully transitioned to mobile games. The “Legend of Blood” mobile game has a monthly flow of up to 700 million, and the “Dragon Valley” mobile game has a monthly flow of 9.
800 million, products such as “Destiny Singer”, “Wanderer’s Island”, “RWBY”, “Dragon Valley World”, “Radiation Refuge” and other products are expected to continue to support the company’s mobile game growth.
A little bit of interaction went forward and became the leader of mobile games out of the sea: China ‘s mobile game market grew faster. Under the background of version number control, companies without a version number did not go out to the sea and went out.
Compared with the 12% industry growth rate in the Chinese market, the growth rate of Chinese game companies in overseas head market mobile games has exceeded 40%, and there is broad room for overseas growth.
As the No. 1 voyager in China, Dot Interactive has occupied the North American market with strong research and development capabilities in SLG and leisure products.
A little bit of interaction links with leisure social products such as “Family Farm” and “Seaside Farm”, which can bring continuous revenue through a long life cycle.
Since then, Little Interactive has successfully created top SLG products-“The Musketeer Age” (with revenue of about 200 million US dollars) and “The King of Avalon” (with revenue of about 400 million US dollars), becoming the most popular mobile games overseas.
Earnings forecasts, estimates and investment ratings As Shanda Games merges into the company, we expect to generate substantial revenue growth.
Shanda’s core IP mobile game “ Dragon Valley 2 ” is expected to be Q2 2019?
Q3 went online, bringing stable profit increase.
What do we expect the company 2019?
2021 revenues will reach 141.
93 ppm / 160.
19 ppm / 174.
5.3 billion, net profit attributable to mother is 34.
55 ppm / 38.
48 ppm / 41.
11 trillion, the corresponding EPS is 0.
11 yuan, corresponding to PE is 8x / 7x / 6x.
Comparable companies have a median P / E of 13 in 2019.
16X, we accordingly give the company a target price of 12.
24 yuan, the first coverage, given a “recommended” rating.
Risk reminders: industry regulatory risks; market competition risks; game development and promotion risks; rising purchase cost risks; intellectual property protection and interest risks.