Days Hao Capital given to the era of "holding" the initial rating

Beijing time May 1 Evening news, investment company Days Hao Capital (t.h.capital) issued an investment report today, giving the gathering time stock (NASDAQ:YY) "hold" the initial rating.

The following is a summary of the contents of the report:

We give the gathering time stock "hold" initial rating. The gathering time is a real-time communication tool provider that allows users to communicate in real time through voice, text, and video. Through the combination of these tools and the Internet, the gathering time in the online games and music live activities such as seizing the opportunity. We believe that in the short term, the current business will continue to promote corporate performance growth, but the future performance growth will depend at least on the following two aspects: 1 yy Education and other new business; 2 mobile platform user growth. In our view, there are uncertainties in both aspects of the current gathering age, so that the "hold" initial rating is given.

Music and games will continue to boost performance in the short term: with the rapid growth of Chinese internet users, China's online activities have expanded from initial portal news to online gaming, music, video, social networking and E-commerce. Through real-time Internet communication products and tools, the gathering time can seize the market opportunity, and in online games and on-line music to obtain revenue.

In 2013, the two business revenues rose to 81.2% and 197.7%, respectively, over the same period. We believe that in the next 2 years or so, these two operations will continue to promote the gathering time performance growth.

Future performance growth depends on new business: We believe that the time of the gathering to launch a new business on its real-time communications platform is the key to the company's future success. Recently, several new businesses, including business conference services and online education, were launched. Although it is still too early to judge the success of online education, we believe that the technology of the gathering age is capable of providing real-time communication and interaction between students and teachers.

Moving to a mobile platform is a challenge: compared with the rapid popularity of mobile internet, the mobile business in the era of gathering is developing slowly. Of its 92 million active users, only 18% of the 17 million are mobile users, much lower than other Internet companies. If the gathering era can not keep pace with the development of mobile Internet, it is believed that its future performance growth will face pressure.

First quarter revenue or exceeding expectations: Our data show that the average number of simultaneous online people (hereinafter referred to as "ACU") and the highest number of online (hereinafter referred to as "PCU") is on the rise. The first quarter of the gathering times ACU quarter-on-quarter growth 19%,PCU 11.8%. Among them, the music business ACU The chain growth 19.3%,PCU the chain growth 4.4%. Game and education business ACU The chain growth 18.8%,PCU 15.2%. As a result, we believe that the first quarter's revenue will be at least the same as Wall Street's expected 94 million dollars, or even exceed that expectation, and the guidance of the gathering time is expected to be 101 million dollars to 102 million dollars. We expect the revenue from the first quarter of the gathering period to reach $101.5 million trillion.

Valuation: We give the "hold" initial rating for the gathering time stock.