Jaffray to maintain giant overweight rating target of 9 US dollars

Beijing Time August 6 Evening News, the U.S. investment Bank Jaffray (PiperJaffray) today issued an investment report to maintain the giant network shares (NYSE:GA) "overweight" rating, while maintaining a 9 dollar target share price unchanged.

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

The Giants network will be released in the U.S. Eastern Time August 6, 2013 after the close of the U.S. stock market (Beijing time August 7) issued the second quarter of the 2013 fiscal year to June 30 earnings. Our survey results show that the company's revenues continue to shift from the "Journey" to "Journey 2." The April 19 launch of the "Fairy World" is still in its infancy, our survey data show that the user's viscosity is worrying. In contrast, the giant network in the development of new games is encouraging. We continue to maintain the "overweight" rating of giant internet stocks while maintaining a 9 dollar target share price unchanged.

Second-quarter forecasts: We expect the giant network's second-quarter revenue to reach $94.2 million trillion, up 2.1% on the chain, while Wall Street expects 95.5 million dollars. Diluted earnings per share will reach $0.22 trillion, consistent with Wall Street expectations. The giant network also said in a letter to shareholders June 7 that revenue from the second quarter is expected to increase in the first quarter.

The number of servers in the core game: based on our analysis of the number of servers in the giant network core game, we believe that the company's revenue continues to shift from the journey to Journey 2, which continues to grow, up to 105 over the weekend, up from 91 at the end of the first quarter. By contrast, "journey" last weekend, the number of servers in 64 units, lower than the end of the first quarter of 67 units. and "Green Journey" (ZT Green) last weekend, the number of servers for 27 units, lower than the end of the first quarter of 30 units.

"The Fairy World" user viscosity is a concern: in the past few weeks, the "Fairy World" server number of relatively stable, maintained in about 60 units. But the number of "busy" and "very busy" servers is from 38 peaks from March 11 to 8 over the weekend. It is unclear whether the "fairy world" could achieve the expected target of 2013 fiscal year 22 million dollars and 2014 fiscal year 62 million dollars. But our recent findings suggest that the user's viscosity is worrying. Our findings show that 1 of the above 60 is extremely difficult, causing some new gamers to lose interest in the game, and 2 gain game privileges at a high cost, causing some players to lose; 3. The Chinese-style fairy tale plot and graphic design are excellent and help attract female players.

Valuation: We continue to maintain the "overweight" rating of the giant's online stock, while maintaining a 9 dollar target share price unchanged.