Gigabit (603444) 2019 Third Quarterly Report Review: “Ask Mobile Games” Outstanding Performance Supports Overall Performance Game Operations Powerful
I. Event Overview The company’s revenue for Q1杭州夜网 to Q3 of 2019 was 15.
5.5 billion (+ 34% YoY).
1%), achieving net profit attributable to mother 6.
700 million (+32 year-on-year.
2%), the net profit after deducting non-attribution is 6.
6.3 billion (+38 compared to the same period last year).
9%), ROE was 23 in the first three quarters.
3%, an increase of 2 over the previous period.
Cash flow from operating activities was 8.
810,000 yuan (+44 compared with the same period last year).
In Q3 2019, it achieved revenue 4.
840,000 yuan (+26 compared with the same period last year).
7%), the net profit of returning to mother is 200 million (YOY + 19%), and the net profit of returning to non-mother is 1
920,000 yuan (+24 compared with the same period last year).
The non-recurring profit or loss of 2019Q3 was 12.84 million yuan, mainly due to entrusting others to invest or manage assets profit or loss of 8.86 million yuan and government subsidies of 8.54 million yuan.
Second, the analysis and judgment of performance are in line with expectations, and the growth rate of profit revenue is basically in line with expectations. The company’s revenue and net profit growth rate are in rapid pace. The Q1 to Q3 2019 sales expenses are 1.
7.2 billion (11% of revenue), a year-on-year increase of 110.
7%, mainly because the new games such as “Greedy Cave 2”, “Crossing the Star Arc” and “Apocalypse Hope” were launched at the end of last year and this year.
0.9 billion (7% of revenue), a year-on-year increase of 34.
3%, mainly because the Shenzhen office building and Guangzhou office building reached the intended usable status and turned into fixed assets, depreciation expenses increased and management personnel expenses increased; the pace of game research and development investment was slow and steady, and research and development costs were 19Q1-Q3 to 2.
300 million (14% of revenue.
8%), an annual increase of 16.
The excellent performance of “Ask Mobile Games” supports the overall performance, and the game operation strength is strong. The Q1 to Q3 2019 operating income achieved a higher growth rate of 34.
1%, mainly due to the revenue growth of “Ask Mobile Games” and new games such as “Greedy Cave 2”, “Crossing the Star Arc” and “Apocalypse Hope”.No. 25, up to No. 5 on the list, currently 31. According to this, a single game flow accounted for more than 50% of the company’s total game flow. “Ask Mobile Games” has been online since 16 years and has been operating close to 4In MMORPG’s own long life cycle, the company’s game operation strength was strong, and the excellent performance of “Ask Mobile Games” supported the overall performance.
Third, investment proposals are expected to make the company profitable in 2019-2021.
58 yuan, corresponding PE is 22X, 19X, 16X.
The company’s existing PE (TTM) is 25X, 33 since listing.
5% score, high margin of safety, maintain the “recommended” level.
Fourth, risk warning: the new game flow is not up to expectations, the existing game flow is not up to expectations, and the game supervision policy tends to be more severe than expected.