BofA Merrill Lynch maintains a neutral rating of 33 dollars

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Beijing time February 10 Evening News, BofA Merrill Lynch today issued an investment report to maintain a nasdaq:cyou "neutral" rating, while maintaining a 33 dollar target share price unchanged.

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

PC games are maturing: The tour is undergoing a shift in revenue from a predominantly self-developed PC game to a more diverse platform, the main revenue from mobile gaming releases. In the quarter, big investments in mobile downloads and browsers were expected. From the profit margin of the quarter, the negative impact of investment is not as scary as it might seem. Core PC games, including "Tianlong Eight" and the Web Game "Pinball Hall" is maturing, but at the same time from the new business revenue contribution is not very big. In the quarter, the "Pinball Hall" active users fell by as much as 2 digits, and the "Tianlong eight" content upgrades brought about by the positive impact has not lasted too long. To this end, we will travel for fiscal year 2014 per share of diluted earnings forecast cut by 1%, the 2015 fiscal year diluted earnings per share forecast cut by 27%.

Quarter performance: Revenue of 195 million U.S. dollars, the chain growth of 6%, and the expected basic agreement. "Tianlong Eight" and Third-party Web game performance is relatively strong, to some extent, to make up for other independent research and development game of the downturn. Operating profit of 29 million U.S. dollars, the chain fell 64%, year-on-year decline of 69%, operating profit margin of 15%, and Wall Street is expected to be 22 million dollars. Net profit of 43 million U.S. dollars, diluted earnings per share of 0.81 U.S. dollars, the chain fell 41%, down 42% year-on-year. The first quarter of fiscal year 2014 is expected to fall 8% to 11%.

Valuation: We continue to maintain a "neutral" rating of the shares while maintaining a 33 dollar target share price unchanged.