Barclays once again recommended to buy China to raise its target price to 34 U.S. dollars

May 19, Barclays released a research report said, based on Chinese hand tour in the 1th quarter of 2014 strong performance, the Chinese target price to increase to 34 U.S. dollars, and give the "overweight" rating. As of May 21, China's tour of the close of 19.8 U.S. dollars, this price from Barclays's latest rating and about 72% of the rise in space. In fact, this is the second time that Barclays has recommended buying for the first time in one months after the Chinese tour has been included in the study. As early as April 3 this year, Barclays first Chinese Hand tour (NASDAQ:CMGE) into the scope of the study, forecast its next 12 months target price of 32 U.S. dollars, to give overweight rating. China's hand tour of the 2014-year 1 quarterly show that its total revenue reached 34.5 million U.S. dollars, compared with the same period last year, growth of 488%, compared to the previous quarter growth of 47%. The net profit margin under the non-GAAP accounting standards was 17.8%, compared with the loss of the previous year. Barclays believes that with the rapid development of the hand travel industry, since the research and distribution of the operating model, coupled with a rich and diverse game portfolio, China's hand tour performance growth is the main reason. There are three main reasons for the future growth of China's hand tour: first, the Chinese hand Tour has been in Taiwan, Korea, Thailand has a local distribution team, and the issue of outstanding performance, optimistic about its overseas distribution business development and liquidity; the second is China's hand tour through IP investment/cooperation to enrich their own game reserves, In 2014, it is planned to issue at least 20 of the third party games and the agency issue 50, some of which have already entered the seal test and the public testing stage. Based on excellent evaluation data, it is believed that China-champion tour will continue to maintain strong growth: third, in addition to the 2014 estimated installed capacity will be more than 80 million units, the Chinese hand tour also through and free WiFi operators, the use of bus and physical store network coverage, the provision and operation of its games, plus the investment of gaming social platform operators Strengthen the layout of the line's own flow. In addition, Barclays believes that China's tour 2nd quarter earnings forecast strong, reached RMB 260 million yuan to 280 million yuan. Barclays believes there is room for net profit margins as revenues grow and costs are controlled.