J.P. Morgan launches investment Report today

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

We believe that in the commercialization phase and profitability, the gathering time and Tencent 2005 years of similar situation. We expect the gathering era to show the same profitability and profitability as Tencent did. To that end, we will increase the operating profit margin for the 2014 fiscal year from 29% to 32%.

The scalability of social platforms: between 2005 and 2010, Tencent's operating profit margin grew by 16%, the equivalent of 3% a year, before the investment strategy was rewarded. We expect the same profit margin to rise in the gathering age.

Profit margin expectations: We expect the operating profit margin for the 2013 fiscal year to increase from 13% to 25% in fiscal year 2012, 2014 in the fiscal year and 26% in fiscal year 2015. We will increase the earnings forecast for each share of the 2014 fiscal year by 19%, 15% higher than Wall Street expects.

CTO turnover will not be too much impact: The gathering Time Chief Technology Officer (CTO) Zhaobin will leave the end of this year, the company's recent stock price downturn to some extent by the impact of the news. Although Zhaobin plays a crucial role in building the technology architecture, we do not believe that its departure will have a significant impact on the company's business: 1 Zhaobin will still be the chairman of the internal Technical Committee in the gathering era; 2 the competitiveness of the gathering era has shifted from pure technology to ecosystem. 2006 Baidu CTO after the departure, did not have a significant impact on the company's business.

Valuation: We continue to maintain the "overweight" rating of our share of the era, raising our target share price from $47 to $56.