中银国际:维持网龙买入评级 教育平板新品打开新市场

Bank of China International: Maintaining NetDragon's Buying Ratings and Opening Up New Markets for New Educational Tablets

新浪港股 ·  09/05/2023 17:46

Bank of China International released a research report stating that it maintained the “buy” rating of NetDragon (00777) and raised its net profit for 2023/24/25 to 938/12.46/1,514 million yuan. The game business is steady, revenue has reached record highs, and profit and revenue growth rates are better than the bank's previous expectations; the sales contribution of the new education tablet will gradually be reflected in the next few quarters, and the SaaS subscription service will bring additional performance.

According to the report, NetDragon game revenue is growing steadily, and the “Magic Domain” IP continues to bring in revenue growth. 23H1 game revenue was 1,920 billion yuan, +8% year on year, accounting for 52% of revenue; operating profit was 1,094 million yuan, +8.7% year on year. Among them, mobile game revenue was 312 million yuan, +7% year on year, accounting for 16% of game revenue; mobile game revenue was +8% year over year to 1.6 billion yuan, accounting for 84% of game revenue. Domestic game revenue was +9%, and overseas game revenue was +4%. “Magic Domain” IP revenue increased 10% year over year, and “Magic Domain Mobile Game 2” released in March 2023 brought an increase. The “Hero Blade” IP was linked to the popular anime IP, which led to a 12% increase in revenue in the first half of the year. The company is currently developing the 2.0 version of “Hero Slayer” and plans to release it in overseas markets. It also reserves a number of MMO and MOBA games, as well as a card game and a casual game.

The bank mentioned that in May 2023, Pumi launched a new, cost-effective product, Activ Panel LX, to enter the low-end tablet market. A large portion of orders for this product came from new customers, and sales will continue to increase in the next few quarters. The company plans to launch a SaaS subscription service integrated with the Pumi tablet before the end of the year, using the Explain Everything platform. In terms of the domestic market, it won the bid for the “National Smart Education Platform for Primary and Secondary Schools” software development service project in July 2023. In addition, the company is actively deploying AI technology in the game and education business. The game mid-Taiwan art pipeline has gradually implemented AIGC technology, which can improve efficiency by more than 30% in the original 2D character drawing process; it is also exploring technologies such as intelligent NPCs, guided AI, and competitive AI. In terms of education, the company is developing a customized educational language model that is deeply integrated with tablet devices.

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