Youzu Network (002174) Quarterly Review: Quanyou Drives Performance to Improve Chain Performance

Youzu Network (002174) Quarterly Review: “Quanyou” Drives Performance to Improve Chain Performance

Event: The company released the third quarter of 2019 report.

The first three quarters of 2019 achieved operating income26.

42 ppm, an increase of 0 per year.

73%; net profit 7.

500,000 yuan, an increase of 3 every year.

29%; net profit after excluding non-recurring gains and losses6.

1.7 billion, an increase of 10 every year.

95%; basic profit return is 0.

81 yuan.

Single-quarter operating income in the third quarter 9.

12 ‰, an increase of 9 per year.

11%; net profit 2.

98 ppm, an increase of 57 per year.

11%; Net profit after rejection of non-recurring gains and losses.

01 billion, an increase of 70 every year.


Key points of investment: Q3 launched the heavy mobile game product “Quanyou”, which drove a significant increase in performance.

The company’s third-quarter performance has significantly improved. Initially, the big IP mobile game project “Game of Thrones Winter is Coming” was launched in July. After the launch, it rushed to the 6th best-selling list of the game and currently ranks around 40.

After the updated version on September 4, it will have a certain effect on the flow and ranking. It is estimated that the total flow of Q3 in Q3 is about 400-500 million.

In the future, the company will continue to make every effort to ensure the stability of the flow of “Quanyou”, which can bring greater stability to the company through long-term operation.

The main expense ratio is well controlled.

The company’s sales expenses in the third quarter were 8.

35%, down 4 each year.

25 units; administrative expenses 11.

77%, rising by 0 every year.

61 total; R & D expenses 9.

12%, an increase of 2 per year.

81 accounting; financial expense budget -2.

04%, down 4 per year.

96 units.

Q3’s major expense ratios have fallen by a total of 5.

79 units.

The gradual decline in the sales expense ratio was initially based on the use of Tencent’s agent model by Quanyou, and the company’s goal in marketing promotion.

The company’s sales expenses in the first three quarters10.

13%, a decrease of 4 over the same period in 2018.

38 units; management expenses13.

03%, increase by 1 every year.

32 units; R & D expenses 9.20%, a year to raise 0.

44 units; financial expense budget 0.

72%, down by 1 every year.

23 digits.

The total major expense ratio is 33.

07%, a 杭州夜生活网 decrease of 3.

86 averages, overall control is good.

The company will continue to launch products from 19Q4-2020Q2.

One of the two-dimensional works, Mountain Mirror Flower, has obtained the version number, and it is expected that the test and opening will be launched soon; others include “Grave Robbery”, “Power Tour” Overseas Edition, “Furious Wings 2”, “Three Kingdoms: Zero””And the agency products” Sell of Light “,” Siege of the King “and other game products are expected to be gradually launched in Q1 and Q2 in 2020 at home and abroad.

Issued for 6 years of 11.

The US $ 500 million convertible debt is used for the main business, and the directors can increase the dividend ratio.

Company 11.

The 5 billion convertible bonds were listed on October 21 with a term of September 23, 2019 to September 23, 2025.

The funds raised are mainly used for: (1) online game development and operation construction projects (6.

US $ 5.3 billion; (2) Upgrade and construction of online game operation platform (1.

520,000 yuan); (3) supplementary working capital (3.

4.5 billion).

The online game development and operation construction project and the online game operation platform construction project are all implemented by Youzu Information, a wholly-owned subsidiary of the company.

Affected by the arrival of convertible bond funds, the company’s monetary capital ratio increased at the beginning of the period.

94% reached 21.

7.3 billion.

At the same time, the company issued an announcement that some directors gradually increased the dividend ratio from not less than 10% of the net profit to not less than 30% of the net profit.

Air Force Corporation’s cash dividend ratios for 2015/2016/2017 were 10 respectively.

02% / 10.

26% / 10.

16%, no cash dividends in 2018.

Goodwill risk has decreased significantly.

The book goodwill of the company in Q3 2019 is 4.

4.8 billion, compared with the beginning of 9.

8.4 billion fell by 54.

41%, mainly due to the company’s loss of 58% of the equity of Guangzhou Zhangtao Network Technology Co., Ltd., a wholly-owned subsidiary, and the corresponding goodwill was fully transferred out.

Profit forecast and investment rating: The company’s EPS for 2019-2020 is expected to be 1.

29 yuan / 1.

49 yuan, according to the closing price of 15 on October 24.

Calculated at 60 yuan, the corresponding PE is 12.

1x and 10.

6 times.

Maintain the company’s “overweight” rating.

Risk Warning: The progress of the game project online is less than expected; the risk of industry supervision and policy; the industry competition is intensified; the performance of the game project is less than expected