Perfect World (002624) 2019 Semi-annual Report Review: Performance Growth Exceeds Market Expectations Waiting for High-Quality Works to Work Again
Investment highlights: Event: On August 9, the company released its 2019 semi-annual performance report, and achieved operating income of 36 in the first half.
56 trillion, a year down 0.
29%; excluding the impact of the divestiture of the cinema business in 2018, the actual revenue in the first half increased by 1深圳桑拿网2%.
In addition, the company’s net profit attributable to its mother in the first half of the year was 10.
180,000 yuan, an annual increase of 30.
5%, exceeding the performance forecast upper limit, and the performance exceeded market expectations.
Opinion: The game business continued to develop strength, and the film and television business performed well.
In terms of business, the company’s gaming business revenue increased by 8 in the first half of the year.
06%, mainly driven by the super IP “Perfect World”, the new IP “Cloud Dream Four Seasons Song” and other boutique mobile games.
Among them, according to the calculation of gamma data, “Perfect World” had a turnover of up to 1 billion U.S. dollars in the first quarter, which contributed to a steady rise in performance.
In terms of film and television, excluding the impact of the alternative theater business in 2018, the company’s film and television business increased its actual revenue in the first half of the year.
25%, slightly faster than expected.
We believe that the company’s film and television business can still stand out in the face of severe film and television regulation, mainly due to its dedicated upstream production strategy.
In the first half of the year, the company launched a number of high-quality film and television dramas, such as “Little Girl Flowers Never Give Up”, “Youth Fight”, “While We Are Young”, and gained better traffic and reputation.Many mainstream media praised it, further highlighting its strong content production capabilities.
Profitability continued to improve, and expenses improved during the period.
The company’s gross profit margin reached 68 in the first half of the year.
58%, at least 9 indicators have been improved, and the profitability has continued to strengthen, mainly due to the division of the theater business. The use of authorized operations in some games has led to a significant decrease in operating costs22.
In terms of period expenses, the company’s period expenses were 39 in the first half of the year.
92%, a year down by 0.
97 budgets, overall cost control is better.
Among them, since two new mobile games were issued by Tencent this year, the company’s publicity expenses have decreased, which has led to a decline in the sales expense ratio.
The management expense ratio and financial expense ratio have been increased by 1 respectively.
41 facts and 0.
The second repo showed confidence.
The company announced on August 7 that it plans to repurchase company shares at no more than 36 yuan / share, and the repurchase amount is not less than 3 trillion and not more than 600 million yuan. This is after the completion of the share repurchase in July 2019.Second share repurchase.
We believe that the second repurchase fully demonstrates ample confidence in the company’s prospects; at the same time, the repurchased shares will be used to allocate incentives or employee shareholdings, and by gradually binding the interests of employees and the company, they will gradually stimulate the enthusiasm and creativity of employees.
Follow-up works are worth looking forward to.
As of August 11, the company added 3 mobile games that have already obtained version numbers, namely “The Condor Heroes 2”, “Dream Collection Cygnus” and “My Origin”. The related works are scheduled to be popular, and it is expected thatRecently launched.
Among them, “My Origin” is exclusively represented by Tencent. Currently, the number of reservations has reached 6.94 million. Under the rich experience of Tencent’s huge traffic entrance and the creation of online celebrity games, the success of the explosion can be expected in the future, and it is expected to inject new revenue into the second half of the year.power.
Investment advice: Maintain a cautious recommendation level.
The company’s EPS for 2019-2020 is expected to be 1.
63 yuan and 1.
84 yuan, corresponding to PE is 14.
5 times and 12.87 times.
Risk warning: policy change, product advancement is less than expected, equity pledge risk, etc.