Sanqi Mutual Entertainment (002555) 2019 Third Quarterly Report Review: This year’s three new head games promote high performance and high-precision buying patterns continue to be verified

Sanqi Mutual Entertainment (002555) 2019 Third Quarterly Report Review: This year’s three new head games promote high performance and high-precision buying patterns continue to be verified

I. Overview of events (1) The company’s 2019Q1-Q3 achieved revenue of 95.

600 million (YOY + 72.

7%), to achieve net 厦门夜网 profit attributable to mother 15.

600 million (YO ++ 27.

7%), the net profit after deducting non-attribution is 14.
.

200 million (+ 21% year-on-year.

3%), ROE was 24 in the first three quarters.

4%, up 4 from the previous period.

9%.

Cash flow from operating activities was 1.9 billion (YOY + 36.

6%).

Non-recurring profit or loss is 1.

USD 3.9 billion (54.84 million yuan in 19Q3 single quarter, mainly government subsidies), mainly investment income of 60.43 million yuan, government subsidies of 65.67 million yuan, profit or loss of entrusting others to invest or manage assets is 13.25 million yuan (mainly wealth management products for banks))income).

(2) Revenue in Q3 2019 was 34.

90,000 yuan (+56 compared with the same period last year).

3%), to achieve net profit attributable to mother 5.

20,000 yuan (+25 compared with the same period last year).

4%), the net profit after deducting non-attribution is 4.

700 million (+14 compared to the same period last year).

9%), single quarter ROE is 8.

4%, up 1 from the previous period.

4%.

(3) The company estimates that the full year 2019 net profit will be 20.

5-21

50,000 yuan, an increase of 103 in ten years.

3% -113.

2%.

Second, the performance of analysis and judgment continued to grow at a high rate. The S-Class New Tour was launched to increase the sales expense ratio. In the third quarter of 2019, the operating income increased by 56 per year.

3%, the net profit attributable to mothers increased by 25 per year.

The growth rate of net profit attributable to mothers is lower than the growth rate of revenues, mainly due to the increase in the sales expense ratio of the new S-class online game.On July 9th, it was launched on all channels), and the new online purchases increased the expected growth. At the same time, the “Doulau” which was launched in January this year, continued to invest in the purchase. According to the App Growing calculation,”Roland” ranked 1st in all mobile games, and 3rd in “Ghost Festival”. 19Q3 single-quarter sales expenses reached 21.

4 trillion, selling expenses 61.

4%, an increase of 101 a year.

8% in the same period last year in the single-quarter 18Q3 selling expenses 47.

5%.

This year’s three first-class new tours have promoted high performance growth, and they are optimistic about future purchases to narrow investment and improve profitability. The company’s independent research and development products have high productivity, high success rate and long cycle.”,” Douro Continent “and” Elven Festival “promote high performance growth.

Since the beginning of this year, the best-selling list of App Store games has basically remained stable in the top 40 and is currently ranked 26; since the launch of Dolo Continent, the best-selling list of App Store games has also basically remained stable in the top 40, currently ranked 59, with the highest ranking in OctoberNine, continue to be optimistic about turning the Tencent video “Douro Continent” anime plot into the most exciting transformation. The joint use of video games has intensified the “Douro Continent” mobile game diversion, increasing the flow of water; App Store games have been selling well since “Pokemon Collection” was launchedThe list is basically stable at the top 10 and currently ranks 8th. Since its launch, it has ranked 3rd in the App Store bestseller list.

According to the purchase volume model, we are optimistic about gradually changing the future purchase volume supplementary measures, and the pipeline continues to be released on a long-term basis. The profit rate is expected to continue to increase in the future.

The company expects that the growth rate of net profit attributable to mothers for the whole year of 2019 will be 103% -113%, and this year’s performance is a deterministic replacement. Third, investment recommendations We expect the company to achieve profitability in 2019-2021.

02, 1.

27, 1.

51 yuan, corresponding PE is 17X, 14X, 11X.

We are optimistic that the company’s current head game’s flow continuity and sales expense supplement will further increase the company’s revenue and profits. At present, the company’s PE (TTM) is located 16 years ago.

9% quantile, higher margin of safety, maintaining the “recommended” level.

Fourth, risk reminders: the new game flow is not up to expectations; the internal game flow is less than expected; the domestic and overseas game policy supervision risks.