Gem NET competition in the first dive

5 months ago, China Green Po became a A-share of the first to online games for the main business, and once all the way, a price-earnings ratio of nearly 100 times times.　　However, as the gem of the way down, the first quarter results far less than the market expectations, the current market capitalisation of the company than the peak shrank more than half, listed in the capital operation, lack of core competitiveness, high expectations of manufacturing bubbles, such as a series of doubts gradually surfaced. Lack of core competitiveness "if with Shanda than that is certainly no advantage, for investors, the advantage of the green treasure is to grow space."　　Wang Keqiang Securities Manager, said. "The online game industry still has to talk to the product, and its core products do not get a better market feedback."　　"Analysys International Online games industry analyst Yuyi said, in green Bao accounted for a A-share first game company, but the future growth of the company, still want to see its core products market feedback."　　However, has been the introduction of new products in the green treasure, the current market feedback is still flat, the core competitiveness has also been questioned. "Dream back to the mountain sea" is still in beta, this week will be launched, as well as our old products before the "future generations", just changed the name "Celestial", as well as the end of the "Pioneer romance" "Hip-Hop Hall", next year, "Three Rangers", and "allied".　　"Wang Keqiang said. Listed in 5 months, the market and the company will be available online games up to 10 variety.　　However, this variety of games in the online game market has not aroused much attention.　　According to 2009 industry statistics, Tencent, Shanda, NetEase, perfect time and space, the Nineth city and other 12 online games giants occupy the market of nearly 90% of China's online games markets, and the rest of the hundreds of small businesses compete for the remaining 12.3% of the share. "According to the data given by some intermediaries, we were earning about 78 million last year, and the whole industry was about 25 billion last year, and the share probably accounted for more than 0.5% of the revenue."　　"Wang Keqiang said.　　Obviously, following the Shanda, NetEase, nine cities and other games after the company listed, a shares of the only online game company, in the market share with the Giants are still very clear gap. "It depends on its specific data, such as how many people are online and how profitable the outlook is." "Bohai Securities analyst Shaolin said that this is to evaluate the competitiveness of a game company is the first standard." According to Wang Keqiang, in the market, while the number of players online is about 70,000, now there should be 80,000.　　Even the highest online value of 80,000 is a fraction of the number of online games giants.　　July 20, NetEase Investor Relations Department provides data, NetEase's two main games, the most recent Dream West tour of the highest online number of 2.6 million, Dahua West tour up to the end of 2009 for 1.1 million. It is worth mentioning is that the original game development Operation Team Core Jack, last year, the two second-rate game of the "Warring States Heroes" and "The War hero Biography" to make a year nearly billion income, tens of millions of of net profit. But at present, Jack has left the Chinese green treasure, which is one of the reasons why the core competitiveness of the green treasure has been questioned。 "In the market when the premium is very high, mainly when it went public to grab the domestic gem listing the first person, and it is the red revolution."　　"This is an important factor in the market's pursuit of it," Yuyi said.　　However, in the two months before the launch of the Green Bao, three months after the plunge, the first stock of online games was questioned as "the first bubble of online games."　　The first bubble of online games?　　February 11 in Green Treasure landing on the mainland gem, become a grand, perfect, nine cities, Giants and other online games to squeeze into the capital market of the upstart, but also the first successful in the mainland gem listed online games companies. Subsequently, the stock price of the Chinese green treasure all the way, coupled with nearly 100 times times the earnings ratio, and then create investment myth.　　In mid-April, the stock price reached a maximum of more than 40 yuan. However, after reaching the highest point, the Chinese green treasure quickly plunged, the May 19 closing price of only 22.8 yuan, from the IPO offering price of 30 yuan plunged nearly one-third.　　Recently, the Chinese stock price has been fluctuating 20 yuan. "Because we have done a public accumulation of positive equity, if it is back to return to the words should be 27-28 yuan, fell down is 7%-8% bar, before the public accumulation of equity after the right to remove." Wang Keqiang said it was the main reason why the company fell below its IPO price two months later. "Now the gem fell below the price of many, break itself is not a rare thing."　　"Wang Keqiang said, the early surge in green Bao, with the gem overall market, the characteristics of the online games industry, there is a certain level two market speculation factors." Wang Keqiang's statement, has been recognized by the industry part of the recognition. "By the overall gem index effect, has been adjusting, has been falling."　　Bohai Securities analyst Shaolin said.　　However, the China Green Treasure itself has problems, is also considered to be the main reason for its stock price lower. "In its own view, although the first in China to red games as the leading and government-backed enterprises, but it has not developed a market impact of the network game."　　"This is why the share price has been falling," said Zhangyanan, an analyst at the research Center in Chiang. Yuyi, an international analyst at Analysys, said the market was expected to be a unique theme as well as a promotional background that might contribute to the rapid development of the product as a whole.　　But the core product is not getting better market feedback, which may be an important reason for the shrinking market capitalisation.　　In the beginning of the IPO, the market, investors placed a grand, nine cities and other games after the big game, however, after the first quarter of the company's earnings, apparently far less than expected, share prices continued to lower.　　The "first bubble" burst is also beginning to circulate in the industry, with its listing background has repeatedly been questioned. The IPO background question "is not immediate." But more is shareholder support, not business support.　　Wang Keqiang said that the background of the state-owned shareholders did not give the direct benefit to the Chinese green treasure.　　However, the state-owned strategic investment shareholder has been regarded by the industry as an important factor in the listing of China Green Treasure. In February this year, Shenzhen city, China Green Bao Network TechnologyCo., Ltd. on the Shenzhen Stock Exchange Gem listing, the issue of 25 million shares, raise capital of 750 million yuan, the issue of 93.75 times times earnings.　　For the Grand Nasdaq listing, Shanda has financed $152.4 million trillion in initial public offerings, up to 13.8 times times earnings. However, seize the opportunity to successfully listed in the Green Treasure, 2009 in the industry ranked 15, its main online game "anti-japanese Hero Biography", in the domestic online games ranked only 35.　　Such a small scale of the second-line online gaming companies can be listed smoothly, the industry is considered to be related to their national background. According to its public information, its predecessor, the PO Tak Network was established in 2003, and in May 2008 as a whole changed to a limited company.　　In its shareholder list, the company holds a 20% per cent stake in the company, while one of the two shareholders of the company is the China Youth Network, while the Chinese youth Network is a member of the Communist Youth League's central network.　　After the listing, the company held a stake in China Green Bao 15%, in accordance with the issue price of 30 yuan, its investment can be 8.65 times times the return. "I do not fully agree that the state's background is the condition for its listing."　　"But the background advantage should provide some support," said analyst Zhangyanan. "We have a shareholder who is under the leadership of the Communist Youth League secretariat, and it is not part of the company's day-to-day production operations, it is only as a shareholder in some areas may be a company advantage, but for now it may not be very big."　　"Wang Keqiang said.　　Wang Keqiang said that in some of the benefits of the game for the promotion of young people, or in some of the foreign products on behalf of the approval facilities, the background may have some policy advantages, but currently can not see directly. "These advantages can not be quickly converted into income or commission, in the current market still depends on the company's final product."　　"Wang Keqiang said.　　However, with the background advantage of the green treasure, in the weak core competitiveness of the situation, the development path is still not clear. Development path to be solved "in China green Bao is the only government background of the game company, and its advocacy of Red games, which in the state of the online games market supervision, compared to other online gaming companies have a certain advantage.　　Analyst Zhangyanan said. "In green Bao is still relying on the red game-led, but the green treasure is not a only red game company, from the second half of this year and the first half of the new game schedule, we are all subjects have."　　"Wang Keqiang said.　　In the current online game product market response general, not high visibility, the listing after the abundant funds in the green treasure in the attempt to develop a variety of content of the game.　　According to the first quarterly earnings of the Chinese green treasure, cash flow negative growth. The main aspect of cash flow is the increase in expenditure. After the listing includes 2008 we do the first round of private placement, that is, constantly melting money, after the product project, the product project will be supplemented by various types of personnel, including research and development, operations, customer service and so on. Wang Keqiang said, because the new product is still in the research and development phase, can not generate cash flow.　　However, for the current development direction of the Chinese green Bao, industry experts remain on the sidelines. "From an investment point of view, the company is a concern, but it is not good or bad at the moment."　　"Zhangyanan said.　　According to Yuyi, an analyst who has long studied online games, from the introduction of the policy and the direction of the whole country to the Internet network game policy, China Green Treasure has the background advantage, in will appear "serious game industry" (the government participates, has the education to guide the game industry), has the obvious superiority.　　However, Yuyi said, serious game is not the existing product structure, its current products are mainly in the playing content layer, but in the game itself does not have much to do.　　Involving serious game edge too early, currently not dominant in the green treasure, how to smooth transition to serious game market mature stage, is still the top priority of the green treasure to consider the issue.　　In the background of the slump, the development goal is not clear, the ownership structure of the unique medium green treasure, growth is still subject to investor suspicion. "Although the company does not have a relatively successful game products, but after the listing, the company has sufficient capital flow, on this Chinese online game transition period, the future may buy some online games research and development team, product level or will improve." "Zhangyanan said. However, due to the small size of companies such as China Green Bao, there may be some cheating behavior (such as from consumption to pull performance, etc.), still need to pay careful attention. (Edit Zhang Xing)