CLSA maintains perfect world weaker than market rating

Sina Science and technology news Beijing time of November 22 night, CLSA issued an investment report today, continue to maintain the perfect World (NASDAQ:PWRD) stock "weaker than the market" rating, the target price set to 13 U.S. dollars. The following is a summary of the report: The Perfect World fiscal year 2011 was relatively sluggish in the third quarter, with revenues falling 9% per cent, close to our expectations. But the adjusted profit fell 37% Year-on-year, down 7%, mainly because of the decline in revenue and profit margins. The perfect world is expected to be the fourth quarter of the quarterly revenue is basically flat, lower than we and industry expectations. The perfect world says it will make dividends, but the news will not reassure the industry about the slow growth in its business and the decline in profits due to the number of undecided figures.　　We maintain the "weaker than the market" rating for the perfect world stock. Third-quarter results: the perfect World 2011 fiscal year in the third quarter of the total revenue of 709 million yuan, the chain fell 9%, mainly because of the domestic game business downturn caused. Our data show that the old game "Perfect" and "The World" the number of players is still stable, but the sales chain fell. Most new games, including the Forsaken World, have seen a drop in user traffic. Since the closed test in August, the day of the dragon Slaughter has not attracted attention, so the beta is postponed until next year.　　The perfect world expects the fourth quarter to grow by up to 4%, below our expected 9%. Profit margin pressure is still: the perfect World third quarter operating profit margin of 27%, the chain fell 14%, year-on-year decline of 5%, mainly because of the decline in revenue and the integration of loss of cryptic studio. We are cautious about the future of cryptic studio and the perfect world's ability to retain cryptic studio talent.　　Cryptic studio will have an impact on the perfect world's profit margins and profits in the short term because of the high operating costs and the lack of profitability. Lack of growth momentum: In view of the "Days of the Dragon slaughter" performance is not satisfactory, the new game "Laugh Proud" (Swordsman Online) to wait until the second quarter of 2012 to launch, but we doubt "smile proud" can be introduced on schedule. Perfect World and Nexon company launched a cooperation, if the Nexon theme of the game introduced to China, the perfect world has a certain role in promoting. But the perfect world says that cooperation with NEXON is mainly to promote its own game theme to the Korean market.　　Finally, the perfect world says it plans to make dividends in the future, but because of the uncertain number and timing, the news will not reassure the industry about the slow growth in its business and the decline in profits. Stock Rating: We maintain a "weaker-than-market" rating for the perfect World stock, setting the target price at $13 trillion. (Li Ming)