Sanqi Mutual Entertainment (002555) In-depth Report: Buying Volume Boosts Mobile Game Business and Constantly Boosts Performance

Sanqi Mutual Entertainment (002555) In-depth Report: Buying Volume Boosts Mobile Game Business and Constantly Boosts Performance

The volume model created a mobile game giant.

1) The company initially served as the R & D and operation of page games, and successfully launched major works such as “Legend of Domination” and “Angel Sword”, and accumulated rich experience in traffic operation; 2) Later extended the mobile game business, “The Eternal Age” 2017 In March of this year, the global monthly water flow was as high as 3.

500 million, can be called “page change hands” benchmarking products, and then the company successively launched “Douluo”, “Dawn of the Dragon”, “Sword Passed”, “Elf Festival” and other works, with a leading buying capacity to create highMasterpieces of mobile games in flowing water; 3) Rich mobile game reserves, self-developed products include “Codename YZD”, “Doulos 3D”, “Mountains and Beauty”, etc. Agent games include “Fantasy of Tomorrow”, “Song of Cloud City””.

The rapid growth of performance has made mobile games the main driving force.

1) From 2015 to 2019H1, the operating income was 46.

6/52.

5/61.

9/76.

3/60.

7 trillion, an increase of 678 each year.

4%, 12.

7%, 17.

9%, 23.

3%, 83.

8%, net profit attributable to mothers is 5, respectively.

1/10.

7/16.

2/10.

5 (asset impairment) / 10.

3 billion, an increase of 1224 each year.

2%, 111.

5%, 51.

4%, -35.

4%, 28.

91%; 2) High growth in mobile games is the mainstay of mobile game products, and mobile games have driven the company’s high growth; 3) 2016-2019 H1 mobile game revenue accounted for 31.

23% / 53.

06% / 73.

13% / 89.

39%, with gross profit accounting for 30.

66% / 59.

23% / 77.

62% / 90.

81%.

Profit forecast and rating.

EPS 0 is expected for 2019/20/21.

99/1.

13/1.

24 yuan, closing price on September 12 corresponds to 18/16/15 times PE. In 2019, the company continued to launch new products, allowing docking with traffic platforms, allowing rich game products to be held, revenue and profit maintained a high growth rate, and the industry chain.The upstream and downstream bargaining power has continued to improve. New products such as the Elf Festival were launched online in the second half of the year, and performance is expected to maintain high growth, covering the “prudent increase” rating for the first time.杭州桑拿网 Risk reminders: The game goes online less than expected; industry competition intensifies; game policies tend to be tight; major shareholders reduce risk; goodwill impairment risk.

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