Perfect World (002624) 2019 Interim Review: “Perfect World” Mobile Games Outstanding Performance Supports Overall Performance Looking Forward to Follow-up Works

First, the event overview 2019H1 Perfect World achieved revenue 36.

60,000 yuan (-0 year-on-year.

3%), net profit attributable to mother 10.

20,000 yuan (+30 compared with the same period last year).

5%), 19H1 performance forecast is expected to increase net profit profit to mother 22.

8% -27.

9%, slightly exceeding market expectations.

The company’s 19H1 deducted non-attribution net profit was 9.

700 million (+ 37% YoY).

7%), EPS is 0.

79 yuan (YOY + 33.

9%), ROE is 11.

4%, an increase of 1 over the previous period.


Non-recurring gains and losses are zero.

47 trillion, mainly for government subsidies.

4.6 billion.

Second, the performance of analysis and judgment was slightly higher than market expectations. The third-party agency operation model reduced operating costs in 2019H1, and Perfect World achieved revenue of 36.

600 million, a year down -0.

3%, operating cost 11.

500 million, down -22 a year.

The 5% is mainly due to the transfer of the cinema business in 2018. The revenue of the cinema business will no longer repeat the scope of consolidation since August 2018. After excluding the impact of the cinema business, the revenue of the game and film and television business in this period actually increased by 12 over the previous year.


At the same time, the company’s “Perfect World” mobile game launched in 2019H1, “Yunmeng Shigege” authorized Tencent’s third-party agent to issue and operate, and under the independent 夜来香体验网 operation and joint operation model, the method of confirming revenue, channel and cost according to the game player recharge scale,The revenue and cost amounts under the authorized operating model have increased, but the supplementary marketing expenses will also be greatly reduced, and the sales cost for 19H1 is 3.

500 million, a decline of 22 per year.

8%, the decline in operating costs and selling expenses ensure that the company ‘s net profit can continue to increase by 31% under the slight change in total revenue. The “Perfect World” mobile game ‘s outstanding performance supports the overall performance.”Knights 2″, “My Origins” and “Dream Set Cygnus” strive to continue to increase profits 1) the company’s 19H1 game business revenue28.

80,000 yuan, an increase of 8 in ten years.

1%, revenue accounted for 78.

7%, an increase of 6.

1%, gross margin is 73.

4%, 合肥夜网 an increase of 6% over the previous period.

Among them, PC-side online game revenue was 9.

8 ‰, an average of 15% over ten years, accounting for 26% of total revenue.

9%, gross margin is 68.

3%, compared with the previous interest rate of 7.

4%; mobile online game revenue 16.

90,000 yuan, an increase of 39 in ten years.
4%, accounting for 46 of total revenue.
2%, gross margin is 78.

7%, an increase of 17 over the previous period.

3%, mainly because Xinyou uses a third-party agent distribution model; revenue from console games1.

8 ‰, an average of 33% over ten years, accounting for 4 of total revenue.

9%, gross margin is 58.

6%, compared with the previous interest rate of 3.

2%; game other business revenue is 0.

160,000 yuan, an increase of 66 in ten years.

8%, accounting for 0 of total revenue.

43%, gross margin is 17.

4%, compared to the previous period’s interest rate of 26.


2) The “Perfect World” mobile game launched by the company H1 in 2019, “Four Seasons Songs in Cloud Dreams” brought good profits to the company.Ranked 6-12.

My Origin, which is expected to be launched in August, is the first sandbox + MMO mobile game in the market. Both Tencent and Perfect Internal have attached great importance to it. On October 10th, it is expected to launch a second-dimensional development business game “Dreamroom Collection”.”Cygnus” (a sequel to “Dream Series”), and “Dragon Fantasy” (perfectly owning 19% of the open-source Zulong, equity method). After July 17, it performed stably and maintained its ranking on the iOS bestseller listAmong the 2-11, the 4 new games recently launched are expected to continue to increase profits.

From August 15th to 25th, 2019, the company will assist the valve company in hosting the “DOTA2” 2019 International Invitational Tournament (Ti9) in Shanghai. This is the first time that Ti series events have been held in China and Asia. Ti9 is committed to further catalyze the development of the company.

Deeply cultivate the production of film and television drama content, expand the network film and television drama layout, and promote diversified development 1) The company’s film and television business operating income in 20187.

800 million, down 22 a year.

4%, revenue accounted for 21.

3%, gross margin is 50.

9%, an increase of 11 over the previous period.

9%, after excluding the impact of the cinema business, the film and television business grew by 32 per year.


2) 19H1, the company produced “Little Girl Flowers Do Not Abandon”, “Youth Fight”, “While We Are Young”, “Building a Dream Love”, “God Dog Seven” Season Three, “July and Ansheng”TV dramas and web dramas have been broadcast one after another, and have won a good profit and market reputation.

In terms of films, the company will continue to build on its own production advantages, previous high-quality resources, and cooperate to create international-level Chinese local movies. The company’s film investment and strategic cooperation with Universal Pictures of the United States will advance in an orderly manner according to plan.The company will continue its layout in the field of online big movies and further promote the diversified development of the company’s movie business.

High-quality content production capabilities, multi-dimensional product strategic layout, and actively deploy the international strategy of “global production, global distribution, global partners” through the version number approval to enter normalization, a more standardized game regulatory environment benefits large game manufacturers, regardless of whether it isThe acquisition of the game version number or the recruitment of the research and development team, the company is quite smooth.

The company has deep R & D strength and R & D team, and has continuously expanded its internationalization. At the same time, a large number of high-quality IP reserves provide content support for the diversification of IP value, which can ensure the continuity and richness of high-quality games.

At present, the company has several mobile games such as “New God Demon Continent”, “Xiao Xiao Ao Jiang Jiang”, “Dream New Zhanxian”, “Remains of War”, “Magic Tower” and so on. The company’s game matrix currently covers MMORPG, rounds.System, ARPG, SLG, Roguelike, card and other types, involving various types of future science fiction, second dimension, ancient mythology, western magic, oriental fairy, etc., integrating new elements such as the open world, sandbox, etc., multi-dimensionalProduct strategic layout.

At the same time, the company accelerated the pace of mobile game business going overseas, actively deployed an international strategy of “global production, global distribution, and global partners”. The game business was deeply immersed in overseas markets and continued to expand. The business layout in overseas markets was extended.Excellent “Perfect World”, “Dragon Fantasy” is expected to go to sea to further benefit the company.

Third, investment suggestions We are optimistic about the future development of companies with high-quality content production capabilities. The new game is expected to bring about performance growth. It is expected that the company will realize revenue in 2019-2021.

96, 2.

13, 2.

34 yuan, corresponding PE is 12X, 11X, 10X.

The company’s current PE (TTM) is 17X. The current PE (TTM) is located in the past 3 years with a historical value of 1%. The safety margin is high, maintaining the “recommended” rating.

4. Risk warnings 1. The new game did not go online as scheduled; 2. The existing product flow declined too quickly; 3. The new game flow was lower than expected.