Gigabit (603444): The performance of 2019H1 exceeds expectations

Gigabit (603444): The performance of 2019H1 exceeds expectations

This report reads: The 杭州桑拿网 company’s 2019H1 performance exceeded expectations, mainly due to the steady rise in the flow of old products, and the new products began to contribute to profits, driving performance to a new level.

Maintain the “overweight” level and raise the target price to 300.

57 yuan.

Investment Highlights: The performance of 2019H1 exceeds market expectations. Maintain “Overweight” rating and raise target price to 300.

57 yuan.

The company’s 2019H1 revenue was 10.

710,000 yuan (+37 compared with the same period last year).

70%), net profit attributable to mother 4.

6.5 billion (+ 38% YoY).

95%), mainly due to the steady flow of “Ask Mobile Games”, while the new game began to contribute profits, driving performance will go one step further.

Increased earnings forecast: Expected company 2019?
2021 revenue will be 21 淡水桑拿网 respectively.

14 (+9.

86%), 25.

42 (+13.

28%), 30.

31 (+17.

29%) million yuan, the net profit attributable to the mother is 9 respectively.

20 (+9.

47%), 10.

80 (+12.

81%), 12.

89 (+16.

76%) million, corresponding to EPS of 12.

80 (+9.

47%), 15.

03 (+12.

81%), 17.

93 (+16.

76%), raise target price to 300.

57 yuan (+28.

56%), corresponding to 20 times PE in 2020, maintain “overweight” rating.

The effect of the excellent game strategy is obvious.

The company’s 2019H1 revenue and net profit attributable to the parent were 10 respectively.

7.1 billion, 4.

650,000 yuan, an increase of 37 in ten years.

70%, 38.

95%; of which Q2 single-quarter revenue is 5.
65 billion (+ 42% YoY).
10%), net profit attributable to mother 2.
.

52 billion (+ 39% YoY).

02%), performance growth accelerated.

The 2019 H1 “Ask for Mobile Games” ranking has further improved, ranking 25th and 5th highest in the App Store game bestseller list (2018, 27 and 11 at the same time).

As of June 30, 2019, “Ask Mobile Games” gradually registered more than 33 million users.

There is a steady rise in the flow of water (currently more than 200 million monthly flows are expected).

New products have begun to exert their strength, and the reserve products are increasingly the cornerstone.

At the end of 2018, new products were successively launched in 2019, including “Greedy Cave 2”, “Crossing the Star Arc”, “Apocalypse Hope”, “A Land of Alienation”, “Longevity”, “Spiral Hero Tan”, etc., which have started to contributePerformance.

At the same time, the company’s reserve games include “Irona”, “Puppet House Fantasy Night”, “Lost Castle”, “Blade of the Abyss”, “Magic Trap 2”, etc. The new and old games continue to exert force and will promote the company’s performanceTake it to a new level.
Catalysts: new game releases, old games launch promotional risk risks: single source of income, policy risks