The 2013 years of Huayi Brothers are doomed to be inseparable from the "game"

Abstract: Huayi Brothers 2013 years doomed and "game" inseparable. At the end of July, Huayi Brothers announced that it would buy a majority stake in Guangzhou Silverside technology for mobile gaming companies at a price of 672 million yuan. In the previous six months of performance, Huayi Brothers also because of the sale of another game

Huayi Brothers 2013 years doomed and "game" inseparable. At the end of July, Huayi Brothers announced that it would buy a majority stake in Guangzhou Silverside technology for mobile gaming companies at a price of 672 million yuan. In the previous six months of performance, Huayi Brothers also because of the sale of another game company to palm the interest of technology, to achieve the performance of the growth of about 300%.

Huayi Brothers tasted the sweetness of the game, the film industry leading company is suddenly transformed into a a-share game concept stocks.

Huayi to build game team

July 24, one months after the suspension of the trading of Huayi Brothers to sell a case of 672 million yuan. The acquisition of the object is located in Guangzhou, mobile gaming company Silverside Technology.

Huayi Brothers to the Silverside technology shareholders to pay 7.6069 million shares, and pay 448 million yuan in cash to complete the acquisition. At the same time, Huayi Brothers will be not more than 10 investors targeted to raise additional supporting funds 224 million yuan.

After the completion of the increase, Huayi brothers will be 672 million yuan price, the acquisition of Silverside Technology 50.88% of the equity.

Ming, vice president of Huayi Brothers and board secretary, said at the Institutional Investor Research conference that the game Plate will be the fourth pillar in the business structure of Huayi Brothers, and the future is the core business sector.

From the accounting statement, the future Huayi Brothers of the four major business will be the film, TV, artists brokerage and games.

But in the first half of the past, the contribution of the game to Huayi Brothers is far from "four" comparable.

Annual report results show that Huayi Brothers is expected to net profit in the first half of 390 million yuan to 420 million yuan, while Huayi Brothers reduce game company Palm Fun Technology, set now 378 million yuan, access to investment income of about 244 million yuan.

This means that in the first half of the big increase of about 300% of the performance, at least nearly 60% is to reduce the interest of the technology contribution. This also shows that Huayi brothers in the first half of the performance growth, the film's contribution to the performance is not outstanding.

The success of the investment in technology has made Huayi brothers enthusiastic in the mobile gaming market. Ming has said that more optimistic about the growth of the mobile gaming market.

Palm of the main technology, the traditional mobile phone business is the largest revenue, but to raise funds to the investment, mobile games and page games is the largest input two areas.

Huayi Brothers, a minority holder, have not formed their own gaming business or team because of the investment in technology. Acquisition of Silverside is likely to achieve this.

Ming said: "We have tasted the sweetness in this field and suffered, the conclusion is to find a best partner, everyone with a risk-sharing structure (cooperation)." ”

Buy-Out broker Tencent

How did Huayi Brothers notice a mobile gaming company in Guangzhou? From the present situation of disclosure, Huayi Brothers Tencent has played a big role.

In the silverside-tech ownership structure, Tencent holds a 15% per cent stake and retains a 8% per cent stake in Silverside technology after the Huayi Brothers acquisition.

Silverside Technology's main revenue comes from the 2012 on-line product "Time Hunter", November 2012 on-line 8 months, this game cumulative recharge amount exceeds 150 million yuan, the monthly water flow in May 2013 close to 40 million yuan.

According to the bulletin, Silverside technology in this industry market share of 5.9%, and market share in the Silverside technology before the is also a 9.4% share of Tencent.

According to the unaudited data, the first half of the Silverside technology revenue reached 95.17 million yuan, net profit of 53.1 million yuan.

In addition, the acquisition at the same time the performance of the gambling agreement, Silverside sales shareholder Commitment Silverside Technology 2013 to 2015 respectively to achieve net profit of 110 million yuan, 143 million yuan and 185.9 million yuan, that is, the annual net income growth of not less than 30%. If future performance is less than promised, the shareholders who sell the shares will make up the difference by shares or cash.

Institutional investors have raised a sharp question to Huayi brothers, so why not a company that owns 15% of Tencent to buy Silverside technology but the Huayi brothers takeover?

Ming the answer is that Tencent is too big, and Huayi Brothers as a "product" of the company, in the DNA has a great fit.

Public data show that Tencent formally intervened in Silverside technology in January 2013, Tencent from the Silverside technology 7 shareholders to obtain 555,600 yuan in the amount of capital, and cash to increase capital, accounting for the proportion of 15%.

But Silverside before and Tencent has up to 6 years of cooperative relations, Tencent for three consecutive years to become Silverside technology's largest customer.

In the purchase of Silverside technology by Huayi Brothers, Tencent sold 7% of its silverside technology stake and gained 26.4 million yuan in cash and 59.4 million yuan in the Huayi Brothers equity stake.

For Tencent, the transaction not only achieved a cash return, the realization of the Silverside technology investment in the part of the withdrawal, but also increased holdings of Huayi Brothers Equity.

According to the current plan, after the acquisition is completed, Tencent will increase the number of Huayi brothers 2.24 million shares, holding the share of Huayi Brothers or from the current 4.6% to 4.8%.

or thickened profits 15%

The shares of Huayi Brothers rose 45% per cent in the four days after the deal, after the merger and the first half cashing in on technology investment returns.

Huayi's shares took 4 days to return to a 40-dollar price equivalent to its rival's light media, which hit record highs in the 1.5 months without a suspension.

Huayi Brothers was not the first layout game, the first Huayi brothers and the Giants have cooperated with the intention to make a difference in the client game, but then the cooperation between the two companies to the Huayi brothers out of the end.

GAO Securities analyst Liao believes that Huayi Brothers to acquire Silverside technology, the potential synergies include silverside can use Huayi rich film content resources to develop new games, and mobile gaming strong liquidity, but also help to ease the Huayi brothers cash flow tense situation.

And Ming explains that in the transformation of intellectual property, the combination of film and mobile games is much easier than movies and web games, client-side games, because mobile games are lighter and the cycle of research and development is shorter.

Thanks to the concept of the game, Huayi Brothers has risen by 185.26% this year, and the market's dynamic PE to Huayi Brothers has risen from about 20 times times to about 40 times times faster.

Huayi Brothers, another gaming company to invest in technology, its share price has risen 294.23% this year, the market to give its PE valuation is more than 167 times times.

If the acquisition of Silverside Technology, its net profit will reach the promised 110 million yuan, this profit scale is close to 2012 Huayi Brothers net income of half. Even considering the dilution caused by equity factors, its contribution to Huayi Brothers is not small. Some analysts expect the Silverside technology to buy a 10%-15% increase in profits for Huayi Brothers in 2014.

Profit-taking of some shareholders

The boom in mobile gaming began in 2012. In the early 2012, in the mobile games market appeared on the monthly income of tens of millions of products.

The report, published by a third party research institute, says the market will keep growing at about 50% per cent.

But the effect of boosting share prices has also greatly stimulated the way listed companies enter the market. This year has entered the mobile game and related fields of listed companies in a stream.

In addition to Huayi Brothers, Bo Rui spread, Zhejiang newspaper media, spin-pole information, Datang Telecom have similar to mobile game manufacturers and game distribution platform acquisition. Among them, Zhejiang newspaper media and other shares have doubled since this year.

For Huayi Brothers, all the money has been reaped by this capital feast. The Fund's two quarterly report showed that there were 52 funds holding 83.33 million shares of Huayi Brothers in the two quarter, of which 67.14 million were overweight during the two quarter, which accounted for 11% of Huayi Brothers ' total equity.

Among them, such as Warburg Xingye industry Select, Hua Bao Xingye earnings growth, the Guangdong Poly Rui more than two quarters of the number of overweight more than 5 million shares.

But public data on the July deal show that some institutions have begun to profit. July 25 and 29th, the Huayi brothers had a huge sell-off in the institutions.

Others are "insiders" of the Huayi Brothers, with executives such as Wang Zhonglei, as well as directors and affiliates such as Mr Ma, Shong.

The latest data show that, in addition to MA, Wang Zhonglei in May to June, the director of Shong's relatives also in May and July a large number of, of which July 29, 30th Huayi Brothers share price stood 41 yuan, there are Shong relatives of the two cap now.

Statistics show that the Shong relatives since May has accumulated 79.56 million yuan. And earlier Wang Zhonglei two times set now 177 million Yuan, Ma Yun is 93.65 million yuan.

Beijing News reporter Min

(Original title: Huayi Brothers transformation game concept stock?) ）