4399 Sprint gem, game stocks low valuation

Prospectus notes that 4399 of the proposed public offering of new shares does not exceed 33.3334 million shares, 4399 chairman Haijian, Vice Chairman xingping each reduction of 2 million shares, GF Securities as the main underwriter.

 


as an established gaming company, 4399 was established in 2002, from the early Flash games platform, has developed into a prospectus mentioned in the "set of web games, mobile network game development and distribution, as well as game platform operation in one integrated Internet game company." From 2011 to 2013, 4399 of the performance has been on the rise, three years of net profit reached 116 million yuan, 233 million yuan, 249 million yuan.


 


in fact, recently in the capital markets, the concept of the game began to cool, but the choice of the shares listed in the game companies are still relatively high valuations, but in Hong Kong and U.S. markets in the two domestic Internet listings more concentrated areas, the game stocks low valuations.


 


industry insiders believe that because the game company's revenue limited to game products, contingency and other factors, it is difficult for investors to endorse. After the domestic hand tour company Blue Port interaction will be issued by the announcement of the possible global sale scale reduction and postponed the listing. Many gaming companies that had planned to go public were also suspending their listings.


 


4399 Sprint Pioneering Board


 


4399 has 7 subsidiaries, namely Beijing Tour home, Guangzhou 4399, Beijing Love Tour, 4399 Korea, 4399 Hong Kong, 4399 Japan and Xiamen Pure tour.


 


In addition, the prospectus shows that the first half of 2014, 4399 revenue 786 million yuan, net profit of 158 million yuan. Shareholders include: Shanhai 38.38%, Morning Yee Investment 18.52%, Xingping 14.36%, Cai wins 1.07%.


 


from the income structure, 4399 of the main sources of income are: game-owned platform operating revenue, game Third-party platform transport revenue and advertising revenue three modules, 2014 1-June accounted for the proportion of total income 78.04%, 18.96% and 2.95% respectively.





Company's game products used in the profit model for the virtual prop charging mode, and according to their own in the industry chain in the game developers, game publishers, platform operators different roles to get the game proceeds of the split. Advertising revenue from platform display and game built-in advertising business. The former is based on the 4399.com Games website and information platform to provide advertising and promotional services.


 


in fact, 4399 is in the forefront of the field of page travel. According to the outlook released this year two quarterly tour operating platform competition pattern, in addition to Tencent and Qihoo 360, 4399 in the game company after 37 games, the market accounted for 7.1%.


 


However, growth in the paging market has slowed in recent years. According to the market monitoring data released by the Analysys think-tank, the market size of China's web game was 10.572 billion yuan in the first half of 2014, an increase of 39.8%. That figure has slowed a lot in comparison with 65.98% in the same period last year.


 


but on the other hand, the tour is still booming. 2014 China Game Industry report shows that the 2014 Chinese game market overall income reached 114.48 billion yuan, an increase of 37.7%; among them, the page swims the market income amounted to 20.27 billion yuan, accounted for is 17.706%, but the hand swims the income to surpass the page to reach 27.49 billion for the first time, accounted for 24.014%.


 


face page tour growth slowed down, 4399 also began to carry out hand-swim attempts, but the current prospectus only disclosed the "Dark God of War", the Hand tour of the first week of the app Store to become the 2nd in the domestic free game Download list, the highest single month recharge water more than 30 million yuan. This is not a prominent company in the field of hand travel.


 


, CEO of China's famous consulting organization, Zhang reporters with the previous listing or listed companies to acquire the game enterprises, 4399 is mainly to page tour as the main business support, hit the concept of entering the capital market, so that the funds to carry out the acquisition of hand travel, to achieve the growth of hand travel business.


 


game concept is getting cold


 


In fact, the current hand tour in the A-share market has been relatively cold. "The level two market enthusiasm for the concept of the game began to get colder." "A brokerage game analyst told the 21st century Economic report that last year, if the executives of the game companies were willing to come forward to cooperate with brokerage research, brokerage analysts flock to, and now on the game business Research, brokerage analyst few.


 


"Because we all realize that the game field of expectations is difficult to achieve, most companies can not maintain high growth, so the capital market does not buy, we are serving the market, so the interest has also declined." The analyst told reporters.


 


in fact, many gaming companies that were bought by listed companies have signed bets, but according to statistics, most companies have yet to complete half of their promised performance in the run-up to the semi-annual reporting by listed companies.


 


Zhang that in the A-share market, the concept of game cooling is mainly in the capital market, the last wave of mergers and acquisitions value of the company's main companies have achieved the acquisition, but the hands of many companies in the field of rapid growth, the entire market has only gone about 20%, so unwilling to be acquired.


 


However, compared to Hong Kong stocks or U.S. stocks, even now there are many shares on the game company valuation is relatively high. At present, the P/E ratio of China Green Po, palm-fun technology and the travel Network is 152.01, 75.7 and 38.77 respectively. On the other, the shares listed previously in Hong Kong were 69.84, 8.45 and 14.48 of the earnings per share of the previous year in terms of the earnings of the roaming holdings, IgG and Burson;


 


recently, the domestic hand tour company Blue Port Interaction issued a notice, said that because of the possible reduction in global sales need to supplement the prospectus, originally scheduled to be listed 19th this month postponed to December 30. Industry insiders told reporters that, in addition to the performance of the Blue Harbor itself, in the fourth quarter, the two-tier market, many funds and fund managers entered a one-year settlement phase, many funds have been withdrawn, and the recent market performance of Hong Kong equities, insufficient subscription, enterprises or to avoid break and reduce the size of


 


and the United States market also rival market also see light, giant Network, grand game, the old in the game shares of the perfect world, the Nineth city also has been the rumor of privatization.


 


A company senior to the reporter said that the domestic planned to be listed in this year's hand tour companies, also began to suspend the listing plan, another opportunity to do listing preparation.


 


, the securities analysts said that the current game field of the concept of the small and medium-sized companies are also facing the awakening of the Giants to join the market, hand-travel in the field of new gross volume of the company has been difficult, let alone listed. "Perhaps in the field of video games, there will be a chance next year," he said. ”