JP Morgan gives grand game overweight rating

Beijing time November 5 Morning News, J.P. Morgan published its Investment report today, giving the Grand game (nasdaqgs:game) "overweight" (overweight) rating, and set its December 10 target price of 15 U.S. dollars. The following is the full report: In terms of sales, Shanda Games is one of the leading online gaming companies in China. The company has launched China's first MMORPG (massively multiplayer online role-playing game) "Legend II".　　of the top 6 online games in China, two are from Shanda games. Over the past few years, China's online gaming market has grown dramatically, and we expect that trend to continue, with a composite annual growth rate of 29.6% from 2008 to 2012.　　This growth has benefited from an increase in internet and broadband penetration, while online gaming is a very attractive, low-cost form of entertainment with very high user loyalty and the type of game that matches the tastes of a large number of players. The difference between Shanda games and other online gaming businesses is: 1 Shanda Games has the largest game product portfolio in the industry, currently operates 31 games, 24 games are about to launch, 2 has the most paid game players in China, paid accounts up to 9.7 million, 3, a variety of game acquisition channels, including independent research and development　　, authorization, cooperative operation, cooperative development and investment, which will provide long-term and stable income growth for Shanda games; 4 has a strong management team, but also good at innovation, such as Shanda Games was the first large-scale use of props to charge the way the game enterprise, and launched the first focus on the game of investment funds. We set the grand target price at $15, 15 times times earnings per share in 2010, and 11.5 times times earnings per share in 2011.　　We expect Shanda to outperform other smaller Chinese online gaming companies because of its diverse portfolio of products, larger user platforms and stable profitability.　　We expect the stock-price drive of Shanda to include: 1 regulatory change is becoming clearer; 2 The first quarterly report will boost investor confidence; 3 "The Tower of Eternity" is expected to achieve good performance. The risk we give for Shanda's ratings and target share prices is that a longer-time game and a more concentrated income may fluctuate the revenues of Shanda's games. (PEI)