Goldman Sachs ratings of Shanda gaming stocks as neutral

Lead: Goldman Sachs released its investment report in Wednesday, maintaining a "neutral" rating for Shanda gaming stocks, Neutral its target share price for the next 12 months from $6.7 to $6. The following is a summary of the report: Shanda Games in the third quarter of 2010 revenue of 1.096 billion yuan, operating profit of 306 million yuan, and the industry and our expectations are basically consistent. The number of active paid subscribers (APA) in the large multiplayer role-playing game (MMORPG) was 9.2 million, down 5% in the chain, and the average income per user (ARPU) stabilized at RMB 35. The number of active leisure games paid subscribers fell 10%, the average income per user is 18 Yuan, the chain growth of 18%.　　Shanda Games forecast that the fourth quarter revenue will reach 168.5 million U.S. dollars to 171.8 million U.S. dollars, the chain growth of 3% to 5% respectively, and our expectations are consistent. "Legend 2" and "legendary World" revenue fell in the third quarter, we believe that this trend will continue to the quarter, although the decline will be less than the third quarter.　　"Dragon Valley" strong performance, the fourth quarter is expected to exceed the "eternal Tower", accounting for the company's total revenue of 10%. Shanda Games said that the next 6 months will also launch "Hades Realm II", "Star Change" (Legend of Immortals) and "Bubble Fighter" (Bubble Fighter) and other important new games. "Hades Realm II" in November has begun to close the test, the initial feedback is good, the first quarter of next year will be a large-scale public test.　　In our opinion, this is not a big game for a Shanda network, so it will not drive revenue growth to a large extent. We maintain the "neutral" (Neutral) rating of the Shanda game stock, bringing the target share price from $6.7 to $6 for the next 12 months. (Li Ming)