Sanqi Mutual Entertainment (002555) 2019 Annual Report Comments: Revenue Increases 72% Annually, Mobile Games Market Share Increases Steadily

Sanqi Mutual Entertainment (002555) 2019 Annual Report Comments: Revenue Increases 72% Annually, Mobile Games Market Share Increases Steadily

Matters: The company announced the semi-annual report for 2019 on August 27, 2019.

Operating income for the second quarter of 2019 was 28.

24 ppm, an increase of 72 in ten years.

06%; 2019Q2 returns to net profit of the mother 5.

79 trillion, an increase of 47 in ten years.

90%.

Comment: 2019Q2 achieved operating income of 28.

24 ppm, an increase of 72 in ten years.

06%, down 13 from the previous month.

03%苏州夜网论坛.

The sequential decrease was mainly due to the replacement of new products in the second quarter.

Along with the new products such as “Spirit Festival” performed well in Q3, the company’s Q3 flow is expected to have further growth than Q2.

Net profit attributable to mothers in the second quarter of 20195.

79 trillion, an increase of 47 in ten years.

90%, a month-on-month increase of 27.

36%.

Mobile games grew at a high speed and the market share increased steadily.

The company continues to maintain its advantage in the domestic mobile game distribution business market, and the market share of the domestic mobile game business of the H1 company in 2019 will further increase to 10.

02%.

Mobile games such as “One Blade” and “Douro Continent” have maintained high sales for a long time.

The highest monthly flow of H1 exceeds 13.

500 million, with more than 1.
.

3.3 billion, with the highest monthly active users exceeding 34 million.

The company’s self-developed product “Douro Mainland” H5 was launched in Singapore and other regions, and achieved the first month of breakthroughs in the millions. The card game “SNK オ ー ル ス タ ー” quickly reached the top of the GooglePlay game download list after being launched in Japan.The ace product “Age of Eternity” and 2019H1 are constantly updated and iterated, and the market in Southeast Asia, Europe, America, Japan, South Korea and other regions has maintained a stable flow.

Users turn to mobile, and web game revenues decrease.

2019H1 web game revenue 6.

44 trillion, down 29 a year.

20%, down 12 from the previous month.

43%.

It is mainly affected by two factors: the shift of users to mobile terminals and the decrease in the number of web game products.

The company ranked first in the service platform launch list in 2019. The self-developed product “Dark Angel” was launched in July 2019.

The company’s scale has strengthened cooperation with domestic top web game R & D teams through strategic investment and business cooperation. It has gradually refined its main boutique games to increase user stickiness, stabilize product life cycles, and further stabilize revenue.

The divestment of non-core business and zero auto parts revenue.

The auto parts business income in 2019H1 was 0 yuan. After the company sold its subsidiary Wuhu Ningzhong Auto Parts Technology Co., Ltd. in 2018H2, the company completely replaced the auto parts business.

Earnings forecasts, estimates and investment ratings.

The company’s mobile game market share has steadily increased, and domestic and overseas markets have gone hand in hand.

Products such as “One Sword”, “Duro Continent”, and “Awakening of the Elves” fully prove the company’s ability to continue to explode.
In addition to legendary and miracle products, the company has stocks of various products and expects to perform well.
We estimate that the company’s net profit attributable to the parent in 19/20/21 will be 20 respectively.

03/24.

23/27.

89 million (20 for the Air Force.

25/23.

00/26.

9 billion), corresponding to EPS0.

95/1.

15/1.

32 yuan, PE is 17/14/12 times.

According to comparable companies, the median P / E for 2019 is 19.

25 times, we raised the company’s target price to 18.

29 yuan, maintain the “recommended” level.

Risk Warning: The game version number review and other policies, the game flow is lower than expected, and the product launch is postponed.