Sanqi Mutual Entertainment (002555): Market share increased to 10%. Consolidation of core advantages. Unit registered customer acquisition costs fell month-on-quarter.
Core point of view: 19H1 company interim report: 1) Revenue increased by 83.
8% to 60.
700 million, net profit attributable to mother increased by 28.
9% to 10.
3 trillion (beyond the notice limit).
2) Net profit attributable to mothers increased by 47 in 19Q2.
9% to 5.
3) Dividend plan: 1 yuan (including tax) is distributed for every 10 shares, and the cash dividend amount is 2.
1) The market share of mobile games has increased to 10.
01% ranked third, and the trend of diversification of new products was obvious. In 19H1, mobile games of companies increased by 153% to 54.
3 trillion, high growth is mainly due to the company’s release of “a sword passed down”, “Duro mainland” H5, “Sword and Reincarnation” and other products, according to the Interim Report disclosed that the company’s highest monthly turnover in the first half of the year is higher than 13.
500 million, with over 1 new registered users.
In 19H1, the mobile game market share of the company reached 10.
02%, ranking third in the country.
In addition to the traditional strong ARPG, the company’s new products also include MMO, leisure sports, SLG and other products. Agent + self-developed two-wheel 武汉夜网论坛 drive growth.
2) The unit registered user wins customer costs down month-on-month. It is expected that the net profit rate will remain stable. The company’s 19Q2 sales expenses will decrease by 6 months.
500 million, while the income side only fell by 4.
2 billion, calculated that the sales cost of a single registered user of 19H1 company is about 27.
3 yuan / person, lower than 37 in 18H2.
67 yuan / person, these are the performance of entering the recycling period, so we expect the company’s net profit rate to remain stable in 19H2.
In addition, the company’s operating cash flow rose to 4 in 19Q2.
6 ppm, 19H1 Net operating cash flow has been reduced to 6 due to adjustment of accounting period and prepaid advertising fees.
Investment suggestion: The company’s high flow and high market share demonstrate its core competitiveness. It is expected to improve the efficiency of winning passengers and the right to bargain in the industry in the future, and expand the success of ARPG to other categories.
Considering the recycling situation, we think the company’s investment intensity in the second half of the year may be flat.
We raised the company’s net profit attributable to its parent to 20 in 2019-2020.
4 billion, 24.
1 ppm, the current sustainable corresponding PE is 16.
0X, considering the company’s leading premium and the valuation of comparable companies, we give the company a corresponding 2019 net profit of about 20 XPE, and the corresponding reasonable value should be about 19.
32 yuan / share, maintain “Buy” rating.
Risk reminder: the risk is that the flow is lower than expected, market competition is intensified, and the sales expense ratio is difficult to fall.