Gigabit (603444) 2018 Annual Report Comments: Better than expected dividend payout ratio of 99.
Investment Highlights Gigabit released its 2018 annual report with slightly better results than the market expected: the report, the company’s operating income YOY + 14.
91% reached 16.
5.5 billion; net profit attributable to mother YOY + 18.
58% reached 7.
2.3 billion yuan; deduct non-attributed net profit YOY + 14.
75% reached 6.
The company plans to distribute a dividend of 100 yuan (including tax) for every 10 shares, with a total cash dividend of 7.
1.9 billion, with a dividend payout ratio of 99.
43%, while the dividend payout ratio in 2017/2016 was only 30.
65% and 50.
The performance of the old games is stable; the reserve products are abundant, and many games have version numbers.
(1) Stable performance of old games: In 2018, the company’s self-developed “Ask for Mobile Games” (online in April 2016) was stable before the iOS best-seller list of 40; the average ranking was 26; the agent-operated “Unbelievable”Maze” (launched in December 2016) also reached an average ranking of 28 on the iOS approximate list.
(2) Rich reserves: Thunder Games currently has “Puppet House Fantasy Night”, “The Force Guardian”, “Irona”, “Lost Castle”, “Never Abandon: Black Hole”, “Magic Cave 2″””, “Oil tycoon”, “adventure and the abyss”, “flower spirit” and other reserve products; another “Bang Bang Little Monster”, “Let’s pinch the little monster”, “Marriage of the Spirit Night”, “The Two Realms””City”, “The Land of Alienation” and other works are under self-research.
Rich product 武汉夜网论坛 reserves provide flexibility for future performance.
(3) Xinyou is mostly the company’s excellent long category: In the past, the company launched many Roguelike mobile games, accumulating player behavior data and operating experience; there will be many similar new games on the line in the future, and its performance is guaranteed.
Effective fee control and improved profitability.
In 2018, the gross profit margin of the Gigabit games business was 92.
26%, an increase of 1 per year.
38pct, mainly due to the reduction of the company’s operation and maintenance staff costs and the optimization of server-related expenses; at the specific business level, the gross profit margin of autonomous operations increased4.
46pct, the improvement is relatively significant.
The company’s sales expenses in 2018 were YOY-16.
76杭州桑拿网% reached 1.
3.4 billion, each decrease in sales expense ratio by 3.
1pct reaches 8.
1%, mainly because the company has optimized its marketing activities and reduced the promotion expenditure of its existing products;
3pct reaches 7.
4%, R & D expense rate increases by 0 every year.
4pct reached 17.
The growth rate of budget expenses was basically the same as that of income.
Gigabit operating margins increased by 4 per year in 2018.
8pct reaches 64.
[Investment suggestion]Affected by the suspension of the version number in 2018 and other factors, we lowered Gbit’s profit forecast for 2019, while dating the 2020 and 2021 profit forecasts.
We expect the company’s operating income for 19/20/21 to be 19.09/21.
200,000 yuan, net profit attributable to mother 7.
50,000 yuan, budget income 11.
98 yuan, corresponding to a price-earnings ratio of 18.
85 times, maintaining the “overweight” level.
[Risk reminder]Key games have not obtained version numbers. The progress of the online game is less than expected, and the performance of the pipeline is less than expected.