Caesar’s culture (002425): The game’s boutique effect will be significant in 19 years and will enter the harvest period

Caesar’s culture (002425): The game’s boutique effect will be significant in 19 years and will enter the harvest period

Event: The company achieved operating income in 20187.

4.5 billion (+ yoy5.

79%), realizing net profit attributable to mothers2.

7.8 billion (+ yoy9.

3%), deducting non-net profit 1.

29 ‰, an average of 43% a year, of which gaming business income is 4.

1.6 billion, accounting for 55% of revenue.

88%, supporting the company’s core business; the company’s operating income in the first quarter of 20192.

6 billion (+ yoy78.

54%); net profit attributable to mother 1.

1.7 billion (+ yoy100.

63%), near the median of the Air Force’s performance forecast interval.

The game has achieved remarkable results, and the company’s net interest rate has steadily increased.

17, 18 and 19Q1 companies gradually increased their net profit attributable to parent companies, which were 36 respectively.

17%, 37.

37% and 45.

06%, mainly due to the company’s “game quality” strategy effect is significant, such as the old game “Three Kingdoms” in the two months before 19 months reached over 100 million, and some heavy IP products “Naruto” and other overseas distribution rightsThe sole agent of the right confirms revenue; in terms of gross profit margin, the company’s overall gross profit margin for the 18 years was 55.

31%, compared with 66 in 17 years.

The interest rate of 57% is due to the drag on the traditional low-margin textile and apparel business and the impact of the suspension of the version number. In the future, the proportion of income from conversion of entertainment business will continue to increase, and the gross profit margin will increase significantly. The gross profit margin in 19Q1 was 77.

13% was mainly due to the bright performance of the gaming business.

The company’s management capabilities are stable. The expansion of game development and promotion in 18 years has laid the foundation for potential release in 19 years.

In terms of period expenses, the company’s sales expense ratio in 18 years increased from 8 in 2017.

86% dropped to 6.

25%; after deducting R & D expenses, the 18-year management expense ratio is 16 in 17 years.

76% dropped to 13.

83%, fully reflecting that the company’s overall management and control ability is good and is in a healthy development stage.

In terms of R & D expenses, it increased 47 years in 18 years.

79%, mainly in order to promote the company’s high-quality game. At present, the company’s blockbuster game “Three Kingdoms Powerless” (“Three Kingdoms 2018”) has obtained the version number, is about to go online, overlapping the high-quality performance of old games, it is expected that the company will welcome in 19 years.Come to the game harvest period.

Internal and external efforts are made simultaneously, IP reserves are abundant, and future cash can be expected.

The company has always focused on the development of the pan-entertainment business; it has accumulated a large amount of high-quality IP through acquisitions and cooperation in the upstream, and has developed game development and operation in the downstream. The company ‘s games have “Fairy Tail”, “Yu You Bai Shu”, and “Soul Mountain in the past”,Global R & D and distribution rights for a number of popular game IPs such as “The Gate of the Xuanjie”.

According to the company’s announcement, it is expected that 四川耍耍网 net profit attributable to mothers will be 1 in the first half of 2019H1.


5.8 billion, an increase of 70% -120% in the same period, corresponding to a profit of about 0 in 19Q2.


41 trillion. Earlier Q2 returns to net profit of 0.

With a growth rate of 39% to 139% in a year, the company’s performance is growing strongly.

Profit forecast and investment grade: Considering that the company has many new games to be launched in 19 years, such as “Fairy Tail”, “Yuyu Hakusho”, “Naruto”, “formerly Sword Mountain” and other blockbuster IP gamesThe company is expected to achieve operating income from 2019 to 2021.


31 ppm, an increase of 148 in ten years.

5%, 30.

8%, 8.

7%; net profit attributable to mother 5.



7.7 billion, an increase of 113 in ten years.

5%, 29.

6%, 13.

9%, corresponding EPS is 0.

73 yuan, 0.

95 yuan and 1.

08 yuan, considering the company’s performance flexibility and comprehensive strength, 15X PE per year in 19, target price 11.

0 yuan, maintain “Buy” rating.

Risk Warning: The game flow is lower than expected, the new game is expected to be launched, and the game industry’s policy supervision risks.