Jaffray reiterated YY overweight rating target price increase to 58 U.S. dollars

Sina Science and technology news Beijing time of August 2, the U.S. investment bank Jaffray (Piper Jaffray) today issued an investment report, reiterated the era of shares (NASDAQ:YY) "Overweight" rating, the target price from 40 U.S. dollars to 58 dollars.

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

After releasing the Better-than-expected second-quarter earnings, we reiterated the "overweight" rating of the era stock, but set the target share price from $40 to $58. We still believe that the diversified revenue drivers of the gathering era will continue to drive revenue, user and profit growth.

Second-quarter results: Revenue of 66.6 million U.S. dollars, higher than we expected 55.3 million U.S. dollars and Wall Street expected 55.6 million dollars. Diluted earnings per share of 0.26 dollars, higher than we and Wall Street expected 0.16 dollars. Online business revenue growth of 88% year-on-year, music business revenue growth of 119%. Gross margin of 53.3%, higher than we expected 53%.

APA and ARPU Growth: The number of active paid subscribers (APA) and average per user revenue (ARPU) increased significantly year-on-year. Network gaming business, Apu for 440,000, an increase of 60% year-on-year, and our expectations consistent. ARPU 346 yuan, an increase of 16.1%, higher than we expected 334 yuan. Music business, APA for 635,000, an increase of 174%, higher than we expected 495,000. ARPU 269 yuan, an increase of 5%, higher than we expected 252 yuan.

Third-quarter results expected: We will gather time 2013 revenue forecast from 241.2 million U.S. dollars to 267 million U.S. dollars, the diluted earnings per share of the forecast from 0.84 U.S. dollars to 1.16 U.S. dollars. We expect revenue in the third quarter to reach RMB 430 million to 440 million yuan (about $70.1 million to $71.7 million), higher than our previous forecast of $64.4 million trillion and Wall Street's expected $61.4 million trillion.

Valuation: We reiterate the "overweight" rating of the gathering period, which will raise the target share price from 40 US dollars to $58. (Li Ming)