Sanqi Mutual Entertainment (002555): Share repurchases used for employee motivation to demonstrate team confidence

Sanqi Mutual Entertainment (002555): Share repurchases used for employee motivation to demonstrate team confidence

Events: 1. The company announced that the third phase of the employee shareholding plan (draft), the number of employees participating in not more than 400 people, including Dong Jiangao (excluding independent directors) 7 people.

The repurchased shares of the company headquarters will be transferred to the employee stock ownership plan at a total price of 22.35 million shares (accounting for 1.


2. The company announced that Tibet Taifu, the subsidiary, intends to use its own funds to contribute no more than 15 million yuan. It will co-sponsor the establishment of a science and technology innovation company with Guangzhou Science and Technology Development Co., Ltd. (Guangzhou is the first state-owned capital operation company) and other institutions.Issuing funds, the total fund subscription scale does not exceed 100 million.

Comments: 1. The company will use the repurchased shares for employee incentives, which will help stimulate employee motivation, improve operating efficiency, and demonstrate team confidence.

During the period from April 11, 2019 to May 7, 2019, the company repurchased 22.35 million shares by concentrated bidding, accounting for 1 of the company’s total share capital.

05%, the transaction price of 12.


02 yuan / share, pay the total amount of 3.

20,000 yuan (excluding transaction costs).

The employee shareholding plan has a duration of 4 years. It will be unlocked in stages (30% / 30% / 40%) one year after the transfer of the last listed share price.

Performance appraisal target (net profit is the net profit attributable to the mother, and does not include the share payment expenses generated by the employee shareholding plan): net profit of not less than 1.5 billion in 2019, gradually net profit of no less than 3.2 billion in 2019-2020, cumulative in 2019-2021Net profit is not less than 52 trillion, corresponding to an average annual growth rate of 15.


Share-based payment expenses (estimated value): RMB 8807/13085/6291/2013 yuan from 2019 to 2022, totaling 3.

20,000 yuan.

2. The company integrates research and operation and builds a new idea of systematic traffic management of “three-dimensional marketing + precision promotion + long-term service”, high integration + higher success rate, and the business has steadily advanced in 19 years.

The company is market-oriented, 苏州桑拿网 product R & D and operation promote each other, effectively balance the purchase cost and user value, and the domestic mobile game market share has increased against the market: 3% in 2017/6% in 18/9% in the first quarter of 19New travels such as “One Blade” and “Douluo” have performed well. It is expected to launch key self-developed mobile games such as “The Elf Festival” (miracle replacement) in the summer of 19 years, and accelerate the deployment.

The company estimates that its net profit attributable to its mothers will be RMB 9 billion to RMB 1 billion (YOY12.

31% -24.

78%), corresponding to net profit attributable to mothers in 19Q24.


4.6 billion (YOY14% -39%, QOQ-2% to + 20%).

3. Profit forecast and investment grade: We estimate that the company’s net profit attributable to its mother in 2019-2021 南宁桑拿 will be 18 respectively.



40,000 yuan, the corresponding EPS is 0.



13 yuan, corresponding to the current PE is 15/13 / 11X, maintaining the “recommended” level.

Risk reminders: policy risks in the gaming industry, increased competition in the industry, the life cycle of old products is less than expected, new product launch progress and market performance are less than expected, user acquisition costs and IP copyright prices are further increased, core talent is lost, player preferences are changed, new technologiesThe change was less than expected, corporate governance structure risks, lifting the ban and reducing risks, market style switching, etc.