Days Hao Capital released today investment report said to maintain the gathering time stock holding rating

Summary: Check the latest quotes Beijing time August 7 Evening News, investment company Days Hao Capital (t.h.capital) today issued an investment report, to maintain the era of stock (NASDAQ:YY) hold a rating. The following is a summary of the report: The second quarter of the 2014 fiscal year to see the latest market

Beijing Time August 7 Evening News, investment company Days Hao Capital (t.h.capital) issued an investment report today, to maintain the "holding" of the Nasdaq:yy "hold" rating.

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

The results were still strong in the second quarter of the 2014 fiscal year and the third-quarter revenues were expected to be higher than Wall Street's expectations, thanks largely to music, game broadcasts and online dating programs. We believe that the gathering era will continue to focus on converting current users into paid users and increasing the average revenue per user (ARPU). But we believe that future business growth depends on the growth of the number of users. To this end, we continue to "hold" the rating for its shares.

Different types of live programs improve the conversion rate and ARPU: The second quarter, the number of active users in the month of the first breakthrough 100 million, the chain growth of 4.7%. The number of paid subscribers reached 2.49 million, an increase of 7.3%. Among them, live program paid users increased by 10%, web game users fell 5%. The total conversion rate was 2.49%, while the first quarter was 2.43%.

New user growth is uncertain: While paid users are growing fast, new users are growing at a slower rate of 4.7%. We believe that new users will come mainly from new business, but we think there are a lot of uncertainties: 1 will soon launch new mobile apps (focus on mobile dating), but it's not yet possible to succeed, and 2 new online education business (100.com) also takes time to prove; 3) Solve the problem of transferring from PC to mobile platform. In mobile products, the era of gathering may need to increase investment efforts.

Adjustment of performance expectations: We will be gathered in the third quarter of the period revenue forecast from 133.8 million U.S. dollars to 147.2 million U.S. dollars, the diluted earnings per share of the forecast from 0.68 U.S. dollars to 0.73 dollars. For the entire 2014 fiscal year, we have projected revenue from USD 502.9 million to $563.1 million, and the projected earnings per share is expected to increase from 2.51 US dollars to 2.73 dollars.

Valuation: We continue to maintain the "hold" rating of the stock market. (Li Ming)