Jaffray to maintain net Qinzhan rating target of 24 USD

Beijing time August 5 afternoon news, Jaffray released a research report today to maintain the nyse:nq of the shares of the stock's overweight rating, the target price hike to 24 U.S. dollars.

The following is a summary of the report:

From the Network Qin Joint CEO Omar Kekhan (Omar Khan), investment Vice President Mart Mattissen (Matt Mathison) and other industry sources to obtain the message: 1 in with Tencent, Baidu, China Mobile to reach a cooperative relationship, business development channel is still very stable, no less than the first quarter. 2 in particular, there are many front-line operators in the channel, and the Network Qin also has many related to the open product potential cooperation. 3 in our view, the most recent potential source of revenue is the Network Qin and Tencent reached the mainland region iOS platform game sales agreement. 4 in spite of the 159% rise in NetQin's share price since the start of the year, we think the value of the shares is still undervalued compared to similar stocks. So we raised our target share price to 24 dollars to maintain our overweight rating.

In the recently announced three major collaborations (Tencent, Baidu and China Mobile), we believe Tencent is the biggest potential source of revenue in the near future. Tencent's market capitalisation is as high as $85 billion trillion, almost flat with Facebook. The company has many popular games and lots of gamers. The mobile gaming Department of the network has gained the exclusive agency of some of the games in some areas of the iOS platform and can reasonably expect short-term revenue growth. In the long run, cooperation with Baidu and China is also meaningful, as they can increase the exposure to the movement.

Since the beginning of July, the Net-Qin stock has risen 324% from its lowest point of $3.72. Although this kind of increase is very common, but we note that the same stock has a higher p/e ratio, and the power of the implementation of the Qin Dynasty is very good, the latest news is also worthy of investors to re-examine the stock, the shareholder base is rapidly changing, share price even innovation high also released good news. We expect NetQin's share price to continue to rise, thus raising its target share price to $24 trillion.