2022-04-26 Qiao Qi of Zhongyuan Securities Co., Ltd. conducted research on Sanqi Interactive Entertainment and released the research report "Annual Report Comments: Overseas Markets Shape a New Growth Curve, and Performance Recovered Significantly in 2022Q1". This report provides insights into Sanqi Interactive Entertainment Buy rating, current stock price is 21.0 yuan.
Sanqi Interactive Entertainment (002555)
company released its 2021 annual report and first quarter 2022 performance forecast. In 2021, the operating income was 16.216 billion yuan, a year-on-year increase of 12.62%; the net profit attributable to the parent company was 2.876 billion yuan, a year-on-year increase of 4.15%; the net profit attributable to the parent company after deduction of non-profit items was 2.627 billion yuan, a year-on-year increase of 9.82%. In the first quarter of 2022, the net profit attributable to the parent company is expected to be 740 million yuan-770 million yuan, a year-on-year increase of 533.71%-559.40%; the net profit attributable to the parent company after deducting non-profit items is expected to be 740 million yuan-770 million yuan, a year-on-year increase of 19202.17%-19984.69%.
investment key points:
’s core products have stable performance, and the strategy of diversification and high-quality products has achieved initial results. The company's mobile game revenue in 2021 is 15.364 billion yuan, a year-on-year increase of 15.55%. The product categories are diversified and the quality has been improved. In 2021, the products "Douluo Dalu: Soul Master Duel", "Douluo Dalu: Soul Awakening", "Glory Archangel" will be launched online, as well as the globally distributed products "Puzzles Survival" and "Call Me the Big Shopkeeper" , "Song of the City on the Clouds" and many other games performed well. Among them, "Douluo Dalu: Soul Master Duel" ranked 11th on average on the iOS best-selling list after its release, rising to the highest ranking of 4th.
has performed well in overseas markets and created a new growth curve. By region, the company's operating income from overseas regions reached 4.777 billion yuan, a year-on-year increase of 122.94%. Explore the global market through diversified high-quality games, release different types of game products according to local market characteristics, and differentiate in promotional materials and game content to achieve a "adaptive to local conditions" strategy. In 2021, the company's highest monthly sales of mobile game products released overseas exceeded 700 million, the total number of new registered users exceeded 55 million, and the highest monthly active users exceeded 8.5 million. According to SensorTower data, the company ranked fourth among Chinese mobile game publishers in terms of global revenue in March 2022, second only to Tencent, NetEase, and MiHoYo. Its products "Puzzles Survival" and "Song of the City on the Cloud" ranked respectively. Ranked 5th and 14th in the overseas revenue list of Chinese mobile games in March. The company's globalization capabilities are highlighted.
project reserves implement the strategy of quality, diversification and globalization. The company continues to adhere to the strategy of quality, diversification, and globalization, and reserves nearly 30 products through self-research, agency, and customization. According to the company's announcement, there are 20 game products under development and testing that will be released domestically, including 7 self-developed products; 16 game products under development and testing will be released overseas, including self-developed products. 8 models (there are duplicate products at home and abroad).
According to the latest batch of game version information released by the National Press and Publication Administration on April 11, the company's product "Dream Voyage" is listed. After experiencing normal development, the market's regulatory concerns about game companies have been eliminated to a certain extent, and After the games that obtain the version number are launched online, they will be transformed into a rebound and growth in performance fundamentals.
The product promotion period in 2021Q1 resulted in a periodic low point in profits, and substantial growth was achieved in 2022Q1. In Q1 of 2021, due to the fact that some game products launched in China and some new products launched in overseas markets are in the traffic promotion period, the company's sales expenses have increased significantly, causing the net profit in 2021Q1 to enter a periodic low. However, as game products gradually enter the growth stage, turnover and profits begin to be recovered, driving Q1 net profit in 2022 to achieve a relatively significant growth, with the net profit growth rate attributable to the parent company exceeding 500%. Under the company's long-term R&D and long-term operation ideas, game products that are currently performing well will continue to release performance in a longer period.
investment advice and profit forecast: The company's globalization, high-quality, and diversified strategies are steadily advancing and are gradually reflected in products and performance. Game categories have been broadened, product quality has been improved, and overseas revenue has achieved breakthroughs. According to the characteristics of game products, a large amount of cost investment is concentrated in the early stage. With the steady growth and release of game product sales, the profitability of the product gradually increases, continuously contributing more performance to the company.
html The version number was re-issued on April 11. Judging from the number of products issued, regulatory authorities have guided the industry's product supply to develop in the direction of improving quality and reducing volume. Game companies with strong R&D capabilities will have long-term competitiveness.In addition, the company has made plans in the fields of film and television, music, animation, VR/AR, and the Yuanverse through investment to support the company's main business.predicts that the company's EPS in 2022 and 2023 will be 1.48 yuan and 1.80 yuan. Based on the closing price of 19.70 yuan on April 25, the corresponding PE will be 13.32 times and 10.96 times, maintaining a "buy" rating.
risk warning: The rhythm and quantity of version number issuance are uncertain; competition in overseas markets intensifies; product launch progress and market performance are less than expected; purchase volume and price increase; loss of core personnel
Securities Star Data Center is based on research data released in the past three years According to calculations, the Guosheng Securities researcher Gu Sheng team has conducted in-depth research on the stock. The average forecast accuracy in the past three years is as high as 95.82%. It predicts that the attributable net profit in 2021 will be a profit of 2.557 billion, and the predicted PE converted based on the current price is 18.26. The latest profit forecast details of
are as follows:
A total of 19 institutions have rated the stock in the past 90 days, 16 have a buy rating, and 3 have an overweight rating; the average target price of the institution in the past 90 days is 31.12. The Securities Star valuation analysis tool shows that Sanqi Interactive Entertainment (002555) has a good company rating of 3 stars, a good price rating of 3.5 stars, and a comprehensive valuation rating of 3 stars. (Rating range: 1 ~ 5 stars, the highest is 5 stars)
The above content is compiled by Securities Star based on public information. If you have any questions, please contact us.
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