Sanqi Mutual Entertainment (002555): The 3Q19 performance is in line with the expected large-scale buying model, forming a virtuous circle
Event: The company achieved operating income of 95 in the first three quarters of 19 years.
60 ppm, a 72-year increase of 72.
72%; net profit attributable to mothers was 15.
USD 5.6 billion, an annual increase of 27.
70%; net profit attributable to non-attributed mothers14.
17 ppm, an increase of 21 in ten years.
Among them, Q3 achieved revenue of 34 in a single quarter.
890 thousand yuan (+56 compared with the same period last year).
29%), net profit attributable to mother 5.
230,000 yuan (+25 compared with the same period last year).
37%), deducting non-attributed net profit4.
680,000 yuan (+14.
Net profit attributable to mothers in the first three quarters was in line with market expectations.
The company’s performance expectation indicators are expected to return to the mother’s net profit for the year 20 in 2019.
5 billion, a 103-year growth 杭州夜网论坛 of 103.
Key points of investment: The Fairy Ceremony surpassed expectations to push Q3 revenue to a new high, and the net interest rate showed a spiral upward trend under the accumulation of long-term products.
Q3’s new product “Elf Grand Ceremony” performed well. After being launched, it ranked top 10 in the best-selling list, achieving 400,000 people online at the same time.
In fact, although Q1 ‘s “One Broadsword” and “Douro Mainland” purchases have decreased, Q3 ‘s iOS game best-seller list has remained at 20-40, and “Doula” has been performing well in Taiwan since the end of June.The best-selling list in the third quarter stabilized at 10-30.
The long-term product flow still maintained a high water level, and the super-expected performance of overlapping new products pushed Q3’s single-quarter revenue to a record high.
The company’s gross profit margin for the first three quarters of 19 was 86.
43% (+10 compared to the same period last year).
90pct), of which Q3 gross margin is 86.
88%, an increase of 7 per year.
84pct, up 2 from the previous month.
The increase in gross profit margin reflects the company’s increasing bargaining power and the trend of gradually shifting from the intermodal mode to the buying mode.
The company’s net profit in 3Q19 was 14.
98%, the new product went online to expand the purchase volume of the body’s net interest rate Q2 Q5 instead of 5.
51pct; but products of longer periods continue to accumulate, Q3 net interest rate measurement Q1 increases by 0.
99pct, the overall profit rate shows a spiral upward trend, forming a virtuous circle.
Q3 Q1 sales expense ratio indicator decreased, and cash flow improved significantly.
In terms of expense ratio, the company’s Q3 single-quarter sales expense ratio was 61.
37%, up 8 from Q2.
60pct, ranking Q1 dropped 4.
59 points, mainly due to the continuous accumulation of old products that have entered the profit recovery period, and the introduction of new products affects the marginal conversion of the income statement; the management expense ratio is 1.
64% (0% YoY).
93 points), R & D expense ratio 5.
49% (0% YoY.
83pct) is basically stable, but the absolute value of R & D costs continues to increase.
In terms of cash flow, the company’s net operating cash flow in the first three quarters.
97 million yuan, of which Q3 single quarter 12.
USD 8.1 billion, accrued receivables accelerated, and accounts payable and bills payable increased significantly month-on-month (changes in settlement with suppliers), which significantly improved cash flow.
Q4 enters the profit recovery period again, driving high performance indicators; next year, the product reserve is rich, and the diversification and extension is worth looking forward to.
Q4 “Elven Festival” will gradually reduce the purchase volume, new products including overseas “Dark Houhou”, etc., the overall investment is expected to decrease, Q4 attributable to the mother net profit4.
9.4 billion, even better growth expectations.
There will be abundant product reserves next year, with categories including ARPG, MMO, SLG, cards, etc. Diversified extensions are worth looking forward to.
Upgrade earnings forecast and maintain “Buy” rating.
As the company’s Q3 core products exceeded expectations, the logic of large-scale purchases was verified, and the outline of the product line is becoming clear next year. We raise the company’s 19/20/21 revenue forecast14.
1% / 19.
7% / 16.
5% to 123.
8.1 billion, up 19/20/21 net profit attributable to mothers3.
1% / 6.
6% / 6.
1% to 21.
56 ppm, corresponding to a PE of 17/15 / 13X in 19-21, maintain the “Buy” rating.
Risk reminder: The margin of regulatory policy tends to be severe, the delay / performance of game projects is less than expected, and the risk of changes in the competitive landscape.