Perfect World (002624): 19H1 performance slightly exceeds the upper limit of the forecast mobile game performance is strong looking forward to follow-up products

Perfect World (002624): 19H1 performance slightly exceeds the upper limit of the forecast mobile game performance is strong looking forward to follow-up products

Event: The company announced an interim report for 19 years and realized revenue of 36.

560 thousand yuan (YOY-0.

29%), net profit attributable to mother 10.

200,000 yuan (+30 compared with the same period last year).

5%), the mother deducts non-net profit 9.

7.3 billion (+ 37% YoY).

67%), net operating cash flow1.

6.7 billion (+169 compared to the same period last year).


Opinions: 1. The performance of 19H1 slightly exceeded the forecast limit, and the mobile game business contributed a major increase.

① The company’s revenue in 19H1 was 36.

560 thousand yuan (YOY-0.

29%), excluding the impact of the theater business (the company changed the theater business in 18 years), the revenue of the game and film business of the 19H1 company increased by 12.


And the company’s “Perfect World” mobile game (online in March 19), “Cloud Dream Four Seasons Song” (online in May 19) two new games authorized by Tencent exclusive distribution, excellent performance and revenue recognition as a net method, profitThe growth rate is higher than the income growth rate.

② 19Q1 / 19Q2 companies achieved revenue of 20 respectively.


15% (10% growth rate of 13% /-13%), non-net profit attributable to mothers4.


10,000 yuan (the annual growth rate is 57% / 24%).

③ The overall gross profit margin of the company in 19H1 was 68.

58%, net interest rate is 27.

69%, the period expense ratio is 39.

92%, of which: the sales rate is 9.

42% (the decrease was mainly due to the launch of new games launched by third parties in 19H1, and the company’s investment in marketing was significantly reduced), and the management fee rate was 8.

59%, R & D expense rate 19.

48% (R & D expenses 7.

1.2 billion), financial rate 2.


④ Accounts receivable of the company at the end of 19H127.

40,000 yuan (up 7.

4 trillion, mainly due to the increase in the flow of new tourism, the corresponding increase in receivables), inventory 23.

08 million yuan (1 more than the end of 18).

66 ppm, small change), other flow resistance11.

40,000 yuan (ie deferred income, an increase of 1 over the end of 18).

7.3 billion, mainly because “DOTA2” and “CS: GO” performed better).

⑤Core subsidiary: 19H1 perfect game realized net profit 9.
250 thousand yuan (+33 compared with the same period last year).
29%), net interest rate 四川耍耍网 of 32%, perfect film and television to achieve a net profit1.

8.7 billion (+ 8% year-on-year.

73%) and a net interest rate of 27%.

2. A number of new tours have performed better than expected since 19 years, and their subsequent product reserves are abundant; the TV drama business has made a smooth transition in the first half of the year, and is waiting for confirmation of the episodes in the second half of the year.

Mobile games 19H1 income 16.

8.9 billion (YOY + 39%), accounting for 46%, and gross profit margin of 79%: For the old products, “Xianxian Mobile Games” performed relatively stably (19th best-selling iOS since 19 years); new products, successively launched in 19 years”Perfect World” mobile game (Tencent’s sole generation / launched in March / ranked first in iOS best-selling for more than 20 days), “Yunmeng Four Seasons Song” (Tencent’s sole generation / launched in May / iOS sold highest 6th), “Grand Condor 2” (online in July / 6th best-selling iOS) several new self-developed new tours, performed better than expected.

3. Looking ahead, the company will continue to increase the layout of new game research and development, segmentation types / overseas markets / emerging technologies.

The mobile game reserve includes “My Origin”, “Dream Collection Cygnus”, “New Demon Continent”, “Xiao Xiao Ao Jiang Hu”, “Fantasy New Zhexian”, “Relic of War”, “Magic Tower”, etc.MMORPG, turn-based, ARPG, SLG, Roguelike, card and other types, involving future science fiction, second dimension, ancient mythology, western magic, oriental fairy and other fusions, integrating open world, sandbox and other elements; actively exploring such as AR, VRThe application of cutting-edge technologies such as artificial intelligence and cloud computing in games further leverages the company’s experience in the development of large-screen games such as terminal games and console games.

4. Profit forecast and investment grade: We estimate that the company’s net profit attributable to its parent in 2019-2021 will be 20 respectively.



90,000 yuan, corresponding PE is 16/14 / 13X, maintaining the “recommended” level.

Risk reminders: policy risks in the game and film and television industry, increased competition, lower-than-expected life cycle of old products, lower-than-expected progress in the launch of new products, increased user acquisition costs and IP prices, loss of core talent, changes in player preferences, and changes in new technologiesLess-than-expected, corporate governance / goodwill / ban lifting risk reduction, market style switching, etc.