Bank of America Merrill Lynch publishes investment report today to keep nine city stocks weaker than market rating

Summary: View the latest quotes Beijing time September 6 Evening News, BofA Merrill Lynch today issued an investment report to maintain the nine city shares (NADAQ:NCTY) weaker than the market rating, the target price to reduce to 3.10 U.S. dollars. The following is a summary of the report: Nine cities in the analyst telephone meeting

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Beijing Time September 6 Evening News, BofA Merrill Lynch today issued an investment report to maintain the nine City stock (NADAQ:NCTY) "weaker than the market" rating, the target share price lowered to 3.10 U.S. dollars.

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

Nine city in the Analyst conference Call announced the first half of this year's game release plan details. The second quarter of the Firefall was launched in the United States and Europe. Consistent with our expectations. However, the nine cities have not yet launched a large-scale promotional activities, as also based on user feedback to modify. The "PlanetSide 2" has also been tested domestically, as is our expectation. "Firefall" will be launched in China in 2014. In the first half of this year, the nine city average operating loss of 136 million yuan per quarter, and 2012 for 148 million yuan.

Overseas operating costs are higher than previously expected. In the first half of this year, nine cities lost 32 million dollars. To this end, we have adjusted the nine city 2013 deficit forecast, the 2014 fiscal year diluted earnings forecast reduced by 20% to 0.57 U.S. dollars.

In the first half of this year, nine cities revenue of 47 million yuan, and the first half of the 2012 fiscal year revenue for 53 million yuan. The net loss was 282 million yuan, equivalent to a year earlier. Nine city currently operates 4 web games, the second half will also launch another 2. Kowloon City launched its first mobile game in the third quarter, but we think the contribution to 2014 revenue is limited.

We continue to maintain the "weaker-than-market" rating of the nine-city stock, with the target price lowered to $3.10.