Home awuzrgzvuCentury Huatong (002602): Giants set sail again for multi-category development

Century Huatong (002602): Giants set sail again for multi-category development

Century Huatong (002602): Giants set sail again for multi-category development

Merger and acquisition of Shengqu Games, is the largest game company with dividends.

Century Huatong started with auto parts manufacturing business. In September 2014, it entered the game industry through the acquisition of Shanghai Tianyou and Wuxi Qiku.

In February 2018, the company completed the interactive acquisition of peer-to-peer and deployed overseas game R & D and distribution business.

In February 2019, the company’s acquisition of Shengqu Games (formerly Shanda Games) passed the meeting smoothly and consolidated in June.

At present, the company has formed a business development model with Shengqu Games and Little Interactive as its core and the two-wheel drive business of the traditional car industry. From the perspective 合肥夜网 of the profit volume of the game business, Century Huatong is currently the largest gaming company (18 The annual net profit of the company’s game business totaled 29.

600 million).

The growth rate of the mobile game industry is picking up, and overseas games and cloud games provide supplementary volume.

After the release of the 2019 version gradually, the growth rate of mobile games has picked up and has become the main driving force for the growth of the game market.

According to Gamma data and newzoo’s predictions, the global mobile game market size will reach 681 in 2019.

600 million, going to sea will become an important growth engine of the game market.

In addition, the development and transmission speed of 5G technology has increased rapidly, and it has strongly supported the development of cloud games 深圳桑拿网 in terms of hardware, thus providing a key opportunity for market breakthrough.

In October 2019, the company reached a cooperation with Migu Culture and took the lead in deploying 5G cloud games.

Shengqu Games: MMO games have deep roots and maintain deep equity and business cooperation with Tencent.

Shengqu Games has top-tier IP resources such as “Legend” and “Valley of Dragons”. It has cultivated end-games and launched a number of blockbuster products in the field of mobile games for many years.

Based on the advantages of traditional IP, the company actively enriches the product category matrix and launches a variety of second-dimensional products, including “Dragon Valley Mobile Games”, “Godless Moon”, “Song of Destiny”, etc.The first month of “Godless Moon” is flowing 1.

5 billion.

Tencent in 2018 to 28.

9.5 billion yuan won Shengqu11.

83% equity and became the sixth largest shareholder of the listed company through share conversion (shareholding ratio 4.


On November 29, 2019, the two parties signed the Business Cooperation Agreement, which will carry out deeper business cooperation in the field of digital interactive entertainment. The company’s gaming business is expected to continue to develop at a high speed with the support of Tencent traffic.

Little bit of interaction: The advantages of overseas business are outstanding, and new game types are actively explored.

The leading interactive products, “The King of Avalon” (launched in 2016) and “The Rifle Age” (launched in 2017) have been ranked among the top five overseas revenues of Appannie China Mobile Games since their launch, showing the company’s strong long-term operating capabilities in the SLG category.

In the future, the company will gradually exert its efforts in categories that have huge overseas markets, such as formation, light leisure intelligence and social chess and card, to provide new momentum for the company’s performance growth.

Investment suggestion: After integrating a little bit of interaction and fun games, the company has mastered a number of top IPs such as “Legend” and “Dragon Valley”, and is the leading game company with the largest dividend volume.

What do we expect the company 2019?
2021 revenue will be 140.

35 ppm / 172.

8.5 billion / 205.

3.5 billion, net profit attributable to mothers was 30.

94 ppm / 40.

25 ppm / 48.

35 trillion, the corresponding EPS is 0.



81 yuan, corresponding to PE is 25x / 19x / 16x.

Risk reminder: The new game launch is less than expected risk, market competition risk, and policy supervision tends to be serious risk.