Sanqi Mutual Entertainment (002555) 2019 Third Quarterly Report Review: The Elf Festival Helps Q3 Revenue Increase 56%

Sanqi Mutual Entertainment (002555) 2019 Third Quarterly Report Review: “The Elf Festival” Helps Q3 Revenue Increase 56%

The company announced the 2019 third quarter report on October 30, 2019.

In Q3 2019, operating income was 34.

89 billion, an annual increase of 56.

29%; 西安耍耍网 Net profit attributable to mothers in Q3 2019 5.

23 ppm, an increase of 25 in ten years.


Comment: 2019Q3 achieved operating income of 34.

890,000 yuan, an increase of 56 in ten years.

29%, an increase of 23 from the previous month.


The quarter-on-quarter growth was mainly due to the good performance of new products such as the Fairy Ceremony in Q3.

Net profit attributable to mothers in Q3 20195.

23 ppm, an increase of 25 in ten years.

37%, down 9 from the previous month.


Mobile games grew at a high speed and the market share increased steadily.

The company continues to maintain its advantage in the domestic mobile game distribution business market, and the market share of the domestic mobile game business of the H1 company in 2019 will further increase to 10.


Mobile games such as “One Blade” and “Douro Continent” have 杭州桑拿网 maintained high sales for a long time.

The highest monthly flow of H1 exceeds 13.

500 million, with more than 1.

3.3 billion, with the highest monthly active users exceeding 34 million.

The performance of the third season “Elf Festival” is better. After the item name is modified, the product flow from the IOS bestseller list has risen. The fourth season “Elf Festival” is expected to enter the profit recovery period.

In terms of product reserves, “Super Ball”, “Legend NB”, “Codename YZD”, “Legendary”, “Codename DG”, “Dark Descendants”, “Duro Land 3D”, “Jiangshan and Beauty” and many other productsWaiting online.

Users turn to mobile, and web game revenues decrease.

2019H1 web game revenue 6.

44 trillion, down 29 a year.

20%, down 12 from the previous month.


It is mainly affected by two factors: the shift of users to mobile terminals and the decrease in the number of web game products.

The company ranked first in the service platform launch list in 2019. The self-developed product “Dark Angel” was launched in July 2019.

The company’s scale has strengthened cooperation with domestic top web game R & D teams through strategic investment and business cooperation. It has gradually refined its main boutique games to increase user stickiness, stabilize product life cycles, and further stabilize revenue.

The divestment of non-core business and zero auto parts revenue.

The auto parts business income in 2019H1 was 0 yuan. After the company sold its subsidiary Wuhu Ningzhong Auto Parts Technology Co., Ltd. in 2018H2, the company completely replaced the auto parts business.

Earnings forecasts, estimates and investment ratings.

The company’s mobile game market share has steadily increased, and domestic and overseas markets have gone hand in hand.

Products such as “One Sword”, “Duro Continent”, and “Spirit Festival” fully prove the company’s ability to continue to explode.
In addition to legendary and miracle products, the company has stocks of various products and expects to perform well.
We estimate that the company’s net profit attributable to the parent in 19/20/21 will be 20 respectively.



$ 0.6 billion (Due to the excellent product data of the Fairy Ceremony, etc., we adjusted our profit forecast to gradually reach 20.



8.9 billion), corresponding to EPS0.



38 yuan, PE is 18/15/13 times.

According to comparable companies, the median P / E of 2019 is 20.

79 times, we raised the company’s target price to 20.

58 yuan, maintain the “recommended” level.

Risk Warning: The game version number review and other policies, the game flow is lower than expected, and the product launch is postponed.