Perfect World (002624): Performance growth in line with expectations Focus on progress of new games in the second half

Perfect World (002624): Performance growth in line with expectations Focus on progress of new games in the second half

The main points of the report describe the company’s announcement of the 2019 interim report.

60,000 to 100,000 yuan, an increase of 22 in ten years.



Event commentary The company’s interim results were in line with expectations, and the growth rate slightly shifted from 2019Q1.

According to the expected median forecast, 2018H1 returns to net profit9.

800 million, of which Q1 and Q2 attributed to the mother’s net profit were 4 respectively.

86 billion, 4.

9.4 billion, a quarterly growth of 35% and 17% in the second quarter of 2019.

The main reason for the rapid growth of the company’s Q2 performance is that the company’s film and television business is affected by strict regulatory policies, which is a drag on the overall business.

The company’s game business has an excellent performance, and “Perfect World” has a stable mobile game performance. Starting from Q2, it will continue to contribute to the increase in profits. At the same time, the company’s reserve products are rich in 19 years and its subsequent growth potential is constant.

1) “Perfect World” mobile game Q1 went online for 22 days. It is estimated that Q1 will have about 800 million inflows, and it is expected to have 3 billion inflows. Revenue will be calculated based on the net amount method.

2) The mobile game reserves are rich in products, and the old products are too stable. The subsequent growth momentum is replaced. The company has “Swordsman”, “My Origin”, “Dream Collection Cygnus”, “Grand Condor 2”, etc.Reserve products, “Yun Meng Shi Shi Ge” (already online) and “My Origin” are all represented by Tencent.

Tencent intends to increase the segmentation ratio with the Android channel, which is good for boutique developers. Looking at 5G for a long time will catalyze the development of cloud games and VR / AR games.The development trend of the long-term benefit industry.

1) On July 6, Tencent intends to increase the game segmentation ratio of some Android channels, resetting the 50% 杭州桑拿网 segmentation ratio to 70%, which will benefit boutique developers.

2) Driven by 5G, the rise of cloud gaming platforms will definitely benefit console game vendors first, and Perfect World is the only console game vendor in the stock market, which will benefit from the rise of cloud gaming.

3) Headline, iQiyi has successively participated in the game publishing business and competed with Tencent. It may increase the segmentation ratio of developers in the future. The company has the advantage of content developers and will supplement the R & D team in 2018. The advantages of gradually expanding will be further highlighted.
The company’s heavy game products are coming online one by one. We predict that the company’s net profit attributable to mothers will be 21 in 2019-2021.

86 billion, 24.

2.3 billion, 26.

3.4 billion, corresponding to PE of 14.

36 times, 12.

95 times, 11.

92 times, give “Buy” rating.

Risk Warning: 1.

Delay of core game products; 2.

The gaming industry grew less than expected.