Sanqi Mutual Entertainment (002555): Launch of Phase III Employee Stock Ownership Plan Demonstrates Confidence in Performance Growth

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Sanqi Mutual Entertainment (002555): Launch of Phase III Employee Stock Ownership Plan Demonstrates Confidence in Performance Growth

The main points of the report describe the company’s launch of the third phase of the employee stock ownership plan (draft): the company intends to repurchase the previous 2234 at 0 yuan.

750,000 shares 杭州桑拿 are transferred to the employee shareholding plan (accounting for 1 total share capital.

05%), the total number of employees participating in this employee shareholding plan does not exceed 400, of which 7 are supervisors, with a duration of 48 months and a lock-up period of up to 36 months in three phases.

Incident review The company transferred the shares previously bought back to the employee stock ownership plan for free, increasing employee motivation, and demonstrating the leadership’s confidence in the company’s future performance growth.

1) Wide coverage: The total number of people in the plan is not more than 400, and the number of directors and supervisors is 7, accounting for 6 employees.

73%, mainly benefiting grassroots employees; 2) Set 2019?
Gradually return to the mother’s net profit indicator in 2021: 2019北京spa会所 net profit is not less than 1.5 billion, 2019?
In 2020, the net profit will be no less than 3.2 billion. 2019?
In 2021, the net profit will gradually be no less than 52 trillion.

The company has strong research and transportation capabilities and abundant reserve products in 2019. It will release a variety of boutique games to further dig out legendary / miracle IPs. At the same time, it will expand the subdivided fields such as SLG and two-dimensional, and lay out multi-division fields.

The company has carried out in-depth cooperation with multiple game manufacturers and diversified its product matrix. It currently covers different types such as ARPG, MMO, card, SLG, etc. In 2018, more than 20 different types and alternative games were launched, expanding the multi-field layout.The relatively specific “ARPG + SLG” was adjusted to “multiple development”.

The company has abundant reserve products and excellent self-developed products.

Currently has a number of exclusive agent mobile games such as “Sword and Reincarnation”, “Pig and Dungeon”, “Fairy Spirit 2 (tentative name)”, the company’s self-developed ARPG games “One Blade Passed Down” and “Douro Continent”Excellent performance, the new product “Elf Festival” has been launched, is expected to bring breakthrough growth for the company’s performance.

The company’s revenue has grown rapidly, expanding diversified products and abundant reserves. We are optimistic about the company’s subsequent business development.

In addition, the company focuses on the development of the game business, and continues to implement employee shareholding plans to increase employee motivation and demonstrate leadership’s confidence in the company’s future performance growth.

We estimate that the company’s net profit attributable to the parent will be 18 in 2019-2021.

22 billion, 20.

9.3 billion, 22.

3.5 billion, corresponding to PE of 16.

08 times, 14.

00 times, 13.

11 times, give “Buy” rating.

Risk Warning: 1.

The company’s core game products were postponed; 2.

The growth rate of the gaming industry has declined.