Gigabit (603444) Annual Report Comments: Steady Growth in 18 Years of Performance
Event: The company released its 2018 annual report.
The company realized operating income in 201816.
55 ppm, an increase of 14 in ten years.
91%; net profit attributable to shareholders of listed companies7.
23 trillion, an annual increase of 18.
58%; net profit after excluding non-recurring gains and losses is 6.
5.1 billion, an increase of 14 every year.
75%; basic return is 10.
12 yuan; a cash dividend of 100 yuan (including tax) is distributed for every 10 shares.
Investment Highlights: The company achieved operating income in the fourth quarter4.
95 ‰, an increase of 32 per year.
00%; net profit attributable to mother 2.
16 ppm, an increase of 29 per year.
97%; net profit after deduction 1
95 ‰, an increase of 39 per year.
The company’s new and old game products performed well.
From the perspective of the old products, the company ‘s combined long-term operational capabilities, the end game “Qiandao” has been in operation for more than 13 years since its launch in 2006 and currently maintains a high level of online users;Launched in 2016, it still maintains an average ranking of 26 on the App Store best-selling list of the Apple App Store, and has a good score of 11; the “Unbelievable Maze”, also launched in 2016, ranks 28th on the App Store game rankingsName, up to No. 2 on the list, and the cumulative number of registered users exceeds 15 million.
From the perspective of the new tour products, “Greedy Cave 2”, which was launched in the fourth quarter of 2018, and “Across the Star Arc”, which was launched in the first quarter of 2019, are also among the top games on the App Store.
The good market performance of game products is the main driving force for the company’s 18-year performance growth.
Revenue from autonomous operations increased significantly, and its proportion increased.
The company operated its own business in 2018 (mainly referring to the company’s own Thunder game platform (www.
com) to publish games and the company is responsible for publishing and promotion) to achieve operating income4.
94 million, an increase of 53 every year.
91%, accounting for 29% of operating income.
84%, an increase of 8.
The growth of 35 single, self-operating revenues was mainly due to the increase in operating income of “Ask Mobile Games”.
Joint operation business (mainly refers to the company’s self-developed products or authorized game products and third-party application platforms to collaborate on game distribution and promotion business) to achieve operating income.
48 ppm, an increase of 12 in ten years.
77%, accounting for 57% of operating income.
27%, a slight decrease of 1.
Operating income and net profit rose steadily, and the selling expenses decreased significantly.
The company’s selling expenses in 2018 were 1.
At 34 ppm, while the company’s operating income increased by two digits in 18 years, the selling expenses gradually decreased by 16%.
76% is basically the company’s optimization effect activities, strengthened accurate delivery, targeted promotion through WeChat public account, movie and TV drama product implantation, cooperation with live broadcast platforms or anchors, game associations, game forums, offline activities, etc.Reduced promotion costs and improved operational efficiency.
The company’s sales expense ratio for 2016/2017/2018 was 12 respectively.
44% / 11.
15% / 8.
08%, has been in decline for three consecutive years.
The company’s total sales expenses and R & D expenses account for 24 of total operating income.
76%, basically unchanged from 17 years.
The company’s R & D expenses are 2.
870,000 yuan, an increase of 17 per year.
65%, accounting for 17.
35%, an increase of 0 from 17 years.
The 41 representatives said that the company no longer faces the 18-year industry winter, and it will no longer relax its investment in game product research and development.
Since the version number was approved for restoration, the company has obtained a number of products for the version number.
The company’s overall reserve of game products is rich, including “Doll House Fantasy Night (DOLL)”, “The Force Guardian”, “Irona”, “Lost Castle”, “Never Abandon: Black Hole”, “The Alienation””Road” has already obtained the version number, and the remaining reserve products include “Magic Cave 2”, “Oil Tycoon”, “Adventure and Abyss”, “Hua Ling” and several other operational reserve products, as well as “Bang Bang Little Monster”Take a look at the self-developed reserve products such as “Little Monsters”, “Marriage of the Spirit Night” and “City of Two Realms”.
Dividends account for 99% of net profit for 18 years.
According to the company’s dividend distribution plan, the company will distribute a cash dividend of 100 yuan (including tax) for every 10 shares to all shareholders in 2018, with a total cash dividend amount of 7.
19 trillion, accounting for 99 years of net profit attributable to mothers.
In 16 and 17, the company’s dividend ratio was 50.
24% / 30.
Investment rating and profit forecast: The company still maintains good main business growth in the face of 18 years of industry cold winter, the long-term vitality of the transformation of old game product performance, and the performance of new game products on the market.
The company continues to increase investment in research and development, and promotes the company’s continuous boutique games under the general trend of the industry’s pursuit of “boutique” of game products.
Since the release of the approval of the version number, the company has already obtained a number of 合肥夜网 game products and is expected to be launched in the future.
The company’s estimated earnings in 2019 and 2020 are 11 respectively.
63 yuan and 13.
09 yuan, according to 207 on April 10.
49 yuan, corresponding to 19 for PE.
0 times and 16.
9 times, in the company’s historical low range, giving the company an “overweight” investment rating.
Risk warning: stricter industry supervision; new game launch schedule and market performance are less than expected; displacement of old game products; shareholder reduction risk