Future asset maintenance Grand Game "buy" rating target price unchanged

Sina Science and technology news Beijing time August 25 afternoon, the Korean future Asset Securities released an investment report today to maintain the Grand game (nasdaq:game) stock "buy" (purchase) rating and 6.6 dollar target share price. Here's a summary of the report: Shanda Games released a stronger two-quarter earnings, but the flow data are weaker. Shanda Game Two quarterly revenue growth of 5%, year-on-year growth of 19%, respectively higher than we and the industry expected 9%, 3%. But in our view, the growth of Shanda games revenue is mainly due to the growth of average revenue per user, which will not continue. The active paying subscribers (APA), a large multiplayer online role-playing game, fell 4%, down 2% per cent year-on-year. Leisure games active pay subscribers fell 30% Year-on-year, down 31%. Shanda Game Three quarterly revenue guidance forecast for the chain growth 2-4%, year-on-year growth 23-25%, higher than our quarter-on-quarter growth of 0.7% of the forecast, but below the industry 4.4% of the quarter-on-quarter growth forecast. The problem is that, in addition to online games "point Blank" will be online in September or October, there are no other exciting games for Shanda. We maintain the Grand game stock buying rating and the 6.6 dollar target share price, which is only 4.4 times times the Ex-cash P/E ratio for 2012 expected earnings. • Shanda Games Two quarterly revenue is higher than we and the industry expects 9%, 3%, but mainly thanks to the sharp increase in average revenue per user. · Operating margins are lower than we expected 1% because of research and development inputs. Operating profit exceeded our expectations, but below industry expectations. • In the second half of this year and 2012 game mix, we only have a cautious optimism about point Blank. Maintain the Grand game stock buy rating and 6.6 dollar target price, corresponding to the 2012 expected earnings ex-cash earnings ratio of 4.4 times times. (Xiao Ming)