Deutsche Bank to maintain a gathering time to buy a rating of 111 U.S. dollars

Beijing Time August 7 Evening News, Deutsche Bank released its investment report today, maintaining the Nasdaq:yy stock "buy" rating, the target share price from 86 U.S. dollars to 111 dollars.

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

Performance exceeded expectations: The second quarter of the gathering period revenue of 841 million yuan, an increase of 106%, the chain growth of 26%, exceeding the company's guiding expectations of the upper limit, higher than our expected 11%, higher than Wall Street expected 12%, mainly thanks to the strong performance of music and emerging business. Diluted earnings per share of 0.7 dollars, 26% higher than our expectations, 19% higher than Wall Street expectations, mainly thanks to operating leverage. Gathering time forecast, third-quarter revenue will grow 91% year-on-year, the chain will increase 10%, than Wall Street expected 14% higher.

The new category of entertainment business drives revenue diversification: In the second quarter, music revenues rose 203% in the period. The recent introduction of new program categories, such as 4 of 4 virtual dating programs and real-time poker broadcasts, quickly won the favor of consumers, especially mobile users.

Game broadcast to another growth engine: we believe that the recent gathering time game broadcast and Baidu Post bar cooperation will make the benefit of the gathering era benefits from cross-selling: 1 Baidu Bar has a huge loyal user base; 2 benefit from a certain age group; 3 The most popular game broadcast on the platform of the gathering time has a large number of active users on the Baidu bar.

Adjustment of performance expectations: In view of the strong performance of the gathering era, we will increase its fiscal year 2014, 2015 and 2016 fiscal year revenue forecasts by 16%, 20% and 16% respectively, the diluted earnings per share is expected to increase by 22%, 25% and 18% respectively.

Valuation: We continue to maintain the "buy" rating of our share of the era, bringing our target share price from $86 to $111. (Li Ming)