Century Huatong (002602): Time-honored mobile game

Century Huatong (002602): Time-honored mobile game

The company has completed the construction of the game industry.

“Sheng Fun Game + Little Interaction” forms an endogenous driving force. “Tencent shares + China Mobile strategic cooperation” builds an extension moat, which has abundant internal and external industry resources, and is expected to maintain its leading edge in the industry for a long time.

As a pioneer of the domestic online game era, Shengqu Games has a mature research and transportation system.

The company has more than ten games in operation for more than 10 years, and successfully cultivated classic IP built-in including “Legend”, “Valley of Dragons”, and “Rainbow Island”.

After the privatization was completed, the investment in research and development was increased again. The eight major studios went hand in hand and the product lineup was full. In 2020, we will usher in a big year for the production of Shengqu Games.”Years of Life”, “Codename: Expedition”, “Legend of the World”, etc., the self-operated products planned to be launched are also abundant, including idol formation, ARPG, music, card and other categories.

Shengqu will 北京夜网 continue to benefit from two main line bonuses: 1) the development of subsequent versions of mobile games adapted from mobile games, and the IP bonus is fully released; 2) the ownership of copyright is settled, and the 10 billion legendary market is expected to pass the “authorization + self-operated” model to eventuallyReset the body.

Diandian Interactive has long benefited from the rapid growth of overseas mobile game markets and product dividends.

As a leading maritime leader, the two products, “The King of Avalon” and “The Gungun Era”, have excellent product quality and excellent traffic operation capabilities. They have remained on the top of the residence income list for more than 2 years, and their user retention rate is relatively high.

The performance of the two new SLG products launched in 2019 surpassed expectations, and began to break through in various categories such as business, puzzle, and gambling. Currently, 南宁桑拿 many products have been tested on the water. It is expected to achieve “SLG + leisure” two-wheel drive in the future.

What do we expect in 2019?
In 2021, the company’s net profit will be 31.

0, 41.

6 and 44.

800 million, corresponding to 22 PE.

03x, 16.

41x and 15.

25 times.

A reasonable value based on comparable and absolute estimates is 15.

At 09 yuan / share, Tencent’s shareholding helped the company stabilize the channel market. China Mobile’s strategic cooperation laid the foundation for the upcoming 5G-cloud gaming era, and for the first time gave a “buy” rating.

Risk Warning: The policy control is becoming severe, the industry competition is intensifying, the launch of new games is delayed, and the goodwill is impaired.