Pacific Crown to maintain the perfect world to win the market target price 28 dollars

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Beijing Time March 11 Evening News, the Pacific Crown Securities published a study today to maintain the perfect world stock (NASDAQ:PWRD) "outperform" rating, and the target price from 24 U.S. dollars to 28 dollars.

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

The perfect World fiscal year 2013 and the first quarter of fiscal year 2014 were expected to be strong, and we expect this trend to continue this year. To this end, we set the perfect world target share price from 24 US dollars to 28 dollars.

The quarterly results were more than expected: Revenue was $151 million trillion, higher than our expected 142.3 million dollars. "Knife Tower 2" (DOTA 2) began commercialization last December, thanks to the contribution of mobile revenue, the perfect world fourth quarter revenue quarter-on-quarter growth of 11.5%. Excluding one-time fees, diluted earnings per share of 0.49 dollars, higher than we expected 0.46 dollars. The perfect world predicts that revenue will reach $142.7 million (median) in the first quarter of fiscal 2014, higher than we expected.

Mobile game contribution: The fourth quarter, mobile game revenue accounted for about 10% of total revenue, mainly thanks to the "God carved Hero" and other new mobile games. More than expected mobile game revenue led to lower than expected gross margin, mainly due to mobile game revenue sharing.

Valuation: We continue to maintain the "outperform" rating of the perfect World stock and set the target share price from 24 US dollars to 28 dollars.