Deutsche Bank maintains a 55 dollar rating target at the time of the gathering

In the morning of January 15, Beijing time, Deutsche Bank released its research report today, keeping the stock rating of the NASDAQ:YY (Hold) unchanged at a target price of 55 dollars.

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

-The new project will bear fruit in the long run;

The gathering of times management today gave a clear and constructive message. We expect strong growth in revenue for the fourth quarter, mainly due to the continued growth momentum of YY music service in the period following the end of happy male.

The time of the gathering is now focused on further development of mobility and education programmes, with little likelihood of recent commercialization. We think these new projects are promising, but it takes time to make a contribution to the benefits of the gathering time.

-Key business units developed on track

YY music services are likely to continue to maintain a strong momentum of growth in the fourth quarter. After the end of the third quarter, "Happy boys", the management said, there was almost no decline in user activity. At the time of the gathering, the cooperation with "Happy boys" has provided a good experience in the production of entertainment content; The company has no significant cooperation plan in fiscal year 2014.

The growth of web games and online advertising business is in line with management expectations. Management also stressed that its game broadcasting business has the opportunity to commercialize.

-Mobile gaming Platform

YY application of the mobile commercialization process is still in the early stages. We estimate that YY usage is more than 20% from the mobile end. The immediate focus of the gathering era is still on improving the user experience. In the near term, the mobile business should not bring significant revenue to the company.

According to our survey, the time of the gathering has been in the mobile version yy application or obtained five game authorization; the company aims to build a more comprehensive mobile gaming platform, using yy from the live video show service Mobile user base to develop the platform.

-Online education: to occupy a good position in a promising market

The current goals set for their online education services during the gathering period depend on attracting more users, including students and teachers, to use the platform. Before the second half of 2014, the commercialization of online educational platforms was unlikely to start.

We believe that online education is a promising vertical industry in the long run; over the past few months, several internet companies, including Baidu, have expanded their online education business Nasdaq:bidu. We expect the era to be a pioneer in this new vertical industry, with the "first mover" advantage and the leading real-time broadcasting technology.

-Performance expectations

We expect the 2013 fiscal year in the quarter of the net revenue for the period of 533 million yuan, the entire 2013 fiscal year net revenue for the RMB 1.744 billion yuan, and the fourth quarter to gather time net profit (not in accordance with the United States General Accounting standards) for the renminbi 126 million yuan, the entire 2013 fiscal year net profit ( Not in accordance with the United States General Accounting Standards) for 503 million yuan.

Deutsche Bank will convene the Global conference call on January 17 10 o'clock (23 o'clock), the investors can call the following number to participate in the meeting:

United States: (800) 309-8606

United Kingdom: 08000288438

Hong Kong, China: 800966253

Other parts of the world: (706) 679-0645

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