MainFirst cut Grand Network and grand game target price

U.S. Eastern Time December 2 afternoon (Beijing time December 3 morning) news, according to foreign media reports, Hong Kong securities brokerage MainFirst Wednesday published a study, The Royal Network (Nasdaq:snda) of the stock rating maintained in the "buy" (purchase) unchanged,　　But it lowered its target price from $65 to $64, keeping the Nasdaq:game stock rating at "buy" unchanged, while lowering its target price from $14 to $13. Shanda Games revenue for the third quarter was 1.27 billion yuan, an increase of 45%, up 10% from the previous quarter; Shanda's third-quarter revenue was 1.38 billion yuan, up 48%, up 12% from the previous quarter.　　In accordance with general accounting standards in the United States, Shanda's third-quarter operating margins fell 2.2% Year-on-year, down 1.8% from the previous quarter, while the Shanda network's third-quarter operating margin fell 5% Year-on-year, down 3.8% from the previous quarter.　　MainFirst predicted that Shanda's operating profit margin would rebound to 36% per cent in the quarter, and that the Shanda network's operating margin would rebound to a normal level of 40% per cent in the quarter. MainFirst points out that Shanda's performance outlook for the fourth quarter is lower than Mainfirs previously expected. The Shanda game predicts that fourth-quarter revenues will grow 3% to 5% from the third quarter, below MainFirst's expected quarter-on-quarter growth of 14%. MainFirst believes this is due to the fact that the new game's contribution to Shanda's revenue may be delayed by one to two quarters. But MainFirst also points out that Shanda's fourth-quarter revenue forecast is still in the top ranks of Chinese online gaming companies, compared with the giant's Network (NASDAQ:GA), which is expected to fall by 15% per cent in the quarter, while the net (nasdaq:cyou) is expected to grow 1.9% on a month-on-month basis,　　Perfect Space-Time (NASDAQ:PWRD) is expected to grow by 8.3% (excluding revenue from the film business in the third quarter). MainFirst will be the Grand Game 2009 fiscal year revenue forecast cut 2.8%, net profit forecast cut 0.5%; will be the Grand game 2010 fiscal year revenue forecast cut 1.2%, net profit forecast to increase 2.8%.　　Based on the market surplus of 2010 fiscal year 12.7 times times, MainFirst the grand game target price from 14 US dollars to 13 dollars, and maintain its "buy" rating unchanged. MainFirst will be the Grand Network 2009 fiscal year revenue forecast cut 1.9%, net profit forecast cut 0.4%, the Grand Network 2010 fiscal year revenue forecast cut 0.7%, net profit forecast cut 0.1%. Based on the 2010 fiscal year 12.5 times times the market surplus, MainFirst the Grand network target price from 65 U.S. dollars to 64 U.S. dollars, and maintain its "buy" rating unchanged. (Tangfeng)