Jinwu Financial News | According to Dongwu Securities Research Report, the social networking business of Chizicheng Technology (09911) is expected to achieve revenue of 32.4 to 3.28 billion yuan, an increase of 60.7% to 62.7% year on year; the innovative business is expected to achieve revenue of 3 to 0.32 billion yuan, an increase of 12.4% to 19.9% year on year; boutique games independently developed by the company and delivered to external independent teams have achieved turnover of about 0.58 billion yuan, an increase of about 182.5% year on year.
The bank said that as of 2024/9/30, the cumulative number of social media downloads reached about 0.74 billion, an increase of 6.5% over 2024/6/30; the average monthly activity of the social media business in 2024Q3 was about 28.98 million people, an increase of about 1.5% over the previous month; the total revenue from the social business is expected to be 32.4 to 3.28 billion yuan, up 60.7% to 62.7% year on year. The sharp increase in revenue is mainly due to the continuous rapid growth of diverse social networking products launched by the group, as well as Blue City Brothers Consolidated statement of revenue (the company completed the acquisition of Blue City Brothers in 2023Q3). In the third quarter, the social networking platform SUGO maintained strong growth, becoming the company's highest-grossing social networking product, and the second 10 million dollar monthly social networking product cultivated by the company after MICO. According to data.ai, SUGO is at the top of the best-selling iOS social apps in the UAE, Saudi Arabia, Turkey and other countries.
The bank said that due to the company's social business development exceeding expectations in the first three quarters and rapid growth in game traffic, the bank raised the company's net profit from 0.35/0.7 billion yuan to 0.41/0.71 billion yuan in 2024 to 2025, and maintained a net profit of 0.8 billion yuan to the mother in 2026. The current stock price corresponding to 2024-2026 PE is 12/7/6 times, respectively, maintaining a “buy” rating.
