Sanqi Mutual Entertainment (002555) Interim Review: New Tour Performs Brightly, Overlaps Games Market Rebounds, Second Quarter Return to Motherhood Net Profit Increases to 48%

Sanqi Mutual Entertainment (002555) Interim Review: New Tour Performs Brightly, Overlaps Games Market Rebounds, Second Quarter Return to Motherhood Net Profit Increases to 48%

Event: On August 27, the company announced the 2019 semi-annual performance report: in the first half of 2019, it achieved revenue of 60.

710,000 yuan, an annual increase of 83.

83%; realized net profit attributable to mother 10.

33 ppm, an increase of 28 in ten years.

91%, mainly due to the rapid growth of mobile game publishing and R & D business in the first half of the year.

At the same time, the second quarter benefited from the previous purchases and entered the recovery period, and the net profit attributable to mothers further accelerated to 47.

9%, and Q1 is 10 ahead of schedule.

80%.

The new mobile games performed well, superimposing the market recovery and boutique trends, driving revenue to increase by 83.

83%; Q2 reduced sales expenses and benefited from the purchase of the investment into the recovery period, net profit attributable to mothers achieved high growth.

Revenue in the first half of 2019 was 60.

71 ppm, an 83-year increase.

83%, high-speed growth and due to the overall recovery of the industry, as well as the trend of boutique products to promote the development of high-quality companies in the title, the performance of the new company of the new company on the line.

19H1 achieved net profit attributable to mother 10.

33 ppm, an increase of 28 in ten years.

91%, of which Q2 achieved net profit attributable to mother 5.

79 trillion, an increase of 47 in ten years.

9% achieved accelerated growth. The new tour focused on the launch of Q1. The selling expenses were higher. The sales expenses of Q2 dropped somewhat. At the same time, there was a time difference in the return on purchases.

Refined operations and diversified product reserves drive mobile game revenue and further increase, and cloud game technology development has accelerated.

19H1’s mobile game business revenue 54.

27 trillion, accounting for 89 of total revenue.

39%, an annual increase of 152.

9%, gross profit of mobile games business 47.

15 ppm, an increase of 185 in ten years.

42%.

The company’s mobile game 杭州桑拿 business revenue and average R & D investment are increasing, and the mobile game business continues to maintain a leading position in many domestic and overseas locations.

With the main game business as the core, it has formed a strategic synergy with the formation of targets in the field of pan-entertainment investment to create a one-stop entertainment ecosystem.

In the future, the company will focus on the game’s main business and traffic operation advantages, combine the already deployed VR and AR fields, and pay attention to 5G, cloud games, and e-sports, and other related conceptual fields to empower the invested companies and form strategic synergy to buildThe one-stop entertainment ecosystem has become the most trusted cultural and creative brand for the younger generation of China in the future.

Profit 杭州桑拿网 forecast: The company is expected to realize net profit attributable to mothers from 2019 to 2021.

6 billion, 23.

0 billion and 26.

600 million, corresponding to 16.

7 times, 14.

2 times and 12.

3 times price-earnings ratio, maintain the highly recommended -A level.

Risk warnings: Xinyou’s performance is less than expected, the version number policy changes, and industry competition is intensifying.