Barclays maintains grand games to reduce rating target price 2.8 USD

News and Information http://www.aliyun.com/zixun/aggregation/17197.html "> Beijing time February 27, Barclays has issued an investment report, maintaining a grand game" reduction "rating, the target price of 2.80 U.S. dollars.

Barclays said the last quarter's performance in the 2012 fiscal year was relatively low, largely dragged down by seasonal downturns and poor core gaming performance.

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

Grand Game 2012 fiscal year quarter performance relatively depressed, the total revenue of 172.1 million U.S. dollars, year-on-year decline of 20%, the chain flat, and Wall Street expected to coincide. Among them, online game revenue of 155.3 million U.S. dollars, down 22.6% year-on-year, the chain down 3.8%, compared to Barclays expected lower 4%, mainly by the seasonal downturn and poor performance of the core games dragged down.

Conference Call attention: 1. "Blood legend" and "Dragon Valley" and other games performance; 2. New game release plan; 3. Overall profit margin trend; 4. Mobile games and web game progress; 5. Potential dividend policy.

The total revenue for the quarter was 172.1 million U.S. dollars, down 20% from a year earlier, and 0.1% per cent in the chain, consistent with corporate guidance expectations and Wall Street expectations. Based on non-US GAAP, the earnings per share is $0.15 trillion, below Wall Street's expected $0.17 trillion. Among them, online game revenue of 155.3 million U.S. dollars, down 22.6%, the chain down 3.8%, lower than our expectations of 4%, mainly by the seasonal downturn and poor performance of the core games dragged down.

The total revenue for fiscal year 2012 was 744.9 million US dollars, down 11.4% year-on-year, 1% higher than our expected 738.6 million dollars. Based on non-US GAAP, the earnings per share was 0.72 dollars, flat to our expectations, below Wall Street's expected $0.74 trillion.

Profit margins edged up 65.4%, up from 63.4% in the third quarter and 61.5% in the same period a year earlier. Based on the U.S. General accounting standards, operating profit margin of 28.4%, the third quarter is 26%, the same period last year 29.6%. Based on non-US GAAP, the net profit margin was 20.9%, the third quarter was 24.5%, and the same year was 22.5%.

Net cash up to the end of the fourth quarter, Shanda played 520 million dollars in net cash, equivalent to 63% of the market value.

Barclays maintained a "reduction" rating for the Shanda game stock, with a target price of 2.80 dollars.