Youzu Network (002174): The net profit attributable to mothers increases by 55 each year.

1% 19 years expected to enter harvest

Youzu Network (002174): The net profit attributable to mothers increases by 55 each year.

1% 19 years expected to enter harvest

Event: On the evening of February 26, 2019, the company announced the results of the report in 2018: 1) The revenue in 2018 was 36.

500 million yuan, a year-on-year growth rate of 12.

8%; Realize net profit attributable to mother 10.

1.7 billion, an annual growth rate of 55.


2) Revenue in Q4 2018 was 10.

2.7 billion, an annual growth rate of 27.

9%; net profit attributable to mother 3.

3.4 billion, a year-on-year growth rate of 69.


Comments: 1. Steady growth in performance, optimization of income structure, and performance in a higher position in the forecast (the net profit range of the return to the mother is annual growth).

twenty two%?

71%), as expected.

Combined with the third quarterly report of the Interim Report, we expect that almost all of the revenue growth will come from mobile games. Under the guidance of the “smart growth” strategy, the company focuses on its main business, “Three Kingdoms for Youth”, “Angel Era”, “Goddess Alliance 2”,The boutique games such as “Sixty Six Plan” have contributed stable flow and income to the company. At the same time, the company’s continued development in overseas markets has further improved market penetration and regional advantages; it is reported that it can dispose of some equity and obtain relevant investment income.

2. Classic IP + long-term operation, rich reserves of projects at home and abroad, after the release of the version number, new products such as the game of thrones of winter are about to go online.

Through self-research and long-term operation, the company has shaped classic original IPs with long life cycles such as the “Goddess” series and “Juvenile” series. The big IP reserves now include “Tomb Raider” and “Game of Thrones”.

At the beginning of 2018, the company launched the first self-developed 3D MMOARPG mobile game “Angel Era” (open beta on January 11, self-developed by Heroes Studio). After the launch, it successively occupied Tencent’s AppBao, a new game download on the 360 game platform, and a double income listTop of the list; ranked among the top 10 online games bestsellers on major gaming platforms such as Huawei, vivo, oppo, and once in the top 5 of the iOS sales list.

At present, each year sees rich reserves in 2019: 1) Domestically, this year’s fist work “Game of Thrones 杭州养生会所 Winter Is Coming” is commissioned by Tencent and has been launched on January 17, 2019 for the first test. It is expected that a version number will be obtained soon. It is expectedOfficially launched in the second quarter, considering that the TV series will also be launched on April 14th, “movie game linkage” or stimulate the performance of the flow; conversion, is expected to 5?
The card game “Three Kingdoms 2” was launched in June, the second-round turn-based RPG game “Shanhai Mirror Flower” was launched in 2019Q3, and the APPG game “Grave Robbery Notes” was launched at the end of 2019.

2) Overseas, according to the company’s official website information, 2019Q1, the company’s overseas new releases include “Goddess Alliance Origin”, “Soul Hunting Awakening” (agent Netease mobile game), “Game of Thrones” (page game), follow 青岛夜网 the second half2 blockbuster agents of Tencent, Netease game masterpiece.

In addition, since the game version number was approved and restarted, the company has obtained a version number of “One Ball Super God”.

3. Actively carry out the plan of increasing shareholder holdings + share repurchase + employee stock holdings, showing confidence in future development.

1) Based on confidence in the company’s future development prospects, the controlling shareholder gradually increased its holdings of the company from November 20, 2017 to November 19, 2018.

8.87 million shares (approximately 0 share capital.

6%), and promised not to transfer the shares within 6 months after the completion of the increase.

After the increase in shareholding plan, the controlling shareholder holds 3.

99.5 billion shares, accounting for 34 of the company’s total share capital.


2) The company launched scale 3 in 2018?
The US $ 500 million share repurchase plan eventually eventually repurchased 2,263 shares.

20,000 shares (accounting for 2 total shares).

55%, the transaction price is 14.

twenty four.

12 yuan / share), the total amount is about 4.
US $ 4.3 billion (excluding transaction fees), which is close to the plan’s upper limit.

3) All companies completed the implementation of the first phase of employee shareholding plan in 2018, and donated 14.11 million shares of the repurchased shares to “Youzu Network Co., Ltd.-the first phase of employee shareholding plan” at zero price, while employeesBuy 188 on the secondary market.

470,000 shares company (average price of 15.

91 yuan / share, accounting for 0 shares.
twenty one%).

We believe that the company’s series of active capital operations in 2018 fully reflects the expectations of the company’s prospects and is optimistic about the company’s sustainable development.

4. Mob big data has begun commercial operation. It is worth looking forward to the company’s first disclosure of big data business in the 2018 Interim Report, with revenue of 71 million, accounting for 4% of revenue. The growth is due to the formal start of commercialization of Mob big data., Opened the pace of the market.

It is preliminary that the gross profit margin of this business is as high as 93.

81%, in the case of the company’s slow growth in cash cow business, actively develop star business, which is conducive to the formation of synergies between the businesses, the prospects are promising.

5. Profit forecast and estimation: We forecast the company’s net profit attributable to mothers in 201912.

1ppm, the EPS corresponding to the current equity is 1.

36 yuan, the current sustainable PE is 14.

9 times.

Maintain “Highly Recommended-A” rating.

Risk reminders: 1. The profit of existing game products declines; 2. The performance of new games is lower than expected; 3. The version number generation progress is less than expected; 4. The regulatory policy is tightened; 5. The risk of impairment of goodwill.