Barclays: "Overweight" China Hand Tour target price 32 USD

On April 3, the research team led by Alicia Yap, an analyst at Barclays Bank, published the report for the first time to include China's Hand tour (NASDAQ:CMGE), which says China's hand tour will be a huge beneficiary of the wave of the Chinese mobile gaming market, predicting a target price of $32 for the next 12 months, Give an overweight rating. This target price and China's hand tour March 31 close to 22.09 U.S. dollars, there is a 45% increase in space. Barclays believes that China will be the top mobile game developer and distributor in China because of its three major advantages, which are both self research and distribution, a rich and diverse gaming portfolio and a full range of channel/platform distribution resources. At the same time, Barclays believes that China's travel through overseas expansion plans to achieve global distribution and increase the number of its game center pre-installed, and other initiatives to bring the company's revenue contribution and potential flow, even if fully consider the general success rate of hand-travel products of uncertainty, the relatively short life cycle and potential implementation risk, The target price for China's 2015-year tour will reach $32, according to a cautious estimate of 15 times times earnings. In fact, the share of palm technology and other hand-travel related concept stocks corresponding to the 2013-year earnings ratio of more than 60 times times. Barclays further analyzed that, compared with the industry, China's hand-study and distribution of the business model will bring a more diversified product mix and lower risk concentration. At the same time, China's full range of hand-travel distribution channel resources to the developers greater value. Barclays believes that China's hand tour has a strong operating system, three-dimensional marketing capabilities and with major Third-party application stores, mobile communications operators, cell phone chips and mobile phone manufacturers have a very deep strategic partnership, can give developers in the distribution process to provide the greatest value. The Barclays report describes the opportunities given to companies in the industry by "catching up with the wave of mobile gaming boom" when it comes to giving China a "overweight" rating.