Investment bank Auriga maintain grand game stock buying rating

Lead: Investment bank Auriga Tuesday issued a report to maintain the "buy" rating for Shanda gaming stocks, setting the target price at $7 trillion. The following is a summary of the report: Shanda Games in the third quarter of 2010 the results were mixed, revenue exceeded expectations, but net profit was lower than the industry average forecast. As for the fourth quarter, Shanda's revenues were expected to be higher than the industry's average expectations. And 2011, we think the Grand game will return to the high growth trend.　　To this end, we continue to maintain the "buy" rating of the Grand gaming stock, setting the target price at $7. Third-quarter revenue exceeded expectations: Shanda game third-quarter revenue 163.6 million U.S. dollars, in the company's expected high, higher than the industry's average forecast of 159.6 million U.S. dollars, has been our expected 160.4 million dollars. Based on US General Accounting Standards (GAAP), the earnings per share is 0.15 dollars, lower than the industry's average forecast of $0.18 trillion, and our expected $0.17 trillion. Large multiplayer role-playing games (MMORPG) The number of active paid users (APA) dropped from 9.65 million in the second quarter of this year to 9.19 million, and per-user average income (ARPU) dropped from 35.2 yuan to 34.7 yuan in the second quarter of this year.　　Leisure games The number of active paid users dropped from 920,000 in the second quarter of this year to 830,000, with the average income per user (ARPU) down from 25.3 yuan to 30.5 yuan in the second quarter of this year. Quarter expected: Shanda's fourth-quarter revenues are expected to reach $168.5 million trillion to $171.8 million trillion, up 3% to 5% per cent respectively.　　Above the industry average forecast of 165.6 million U.S. dollars, the chain growth of 3.8%. Restore high growth: As more new games are launched, Shanda games will break the embarrassing situation dominated by old games. We believe that this will drive the revival of Shanda games to growth. In the next few quarters, Shanda games will launch new games including Hades Realm II, "Bubble warriors" (Bubble Fighter), "star Change" (Legend of Immortals) and "Final Fantasy XIV". (Li Ming)