MainFirst maintain grand Game buying ratings

Beijing time November 16 Morning news, MainFirst Securities Hong Kong Limited yesterday published an investment report to maintain the Grand game (nasdaqgs:game) stock "buy" rating and 14 dollar target share price unchanged. The following is a summary of the report: we communicated with Grand Game CEO Yu and CFO Wei.　　We still think the market is too simplistic for the legend 2 to underestimate the value of grand games and Grand Interaction (Nasdaqgs:snda). -long-term plan to good: in the Chinese online game market, in addition to Tencent, all enterprises have to struggle for growth. Shanda Interactive and Shanda games have invested in building ecosystems to sustain growth.　　We believe this is a very good strategy. -Short-term executive power to be improved: we believe that the performance of the "Tower of Eternity" is not up to the expectations reflected in the grand game and NCsoft two problems. In our view, because of the Grand Interactive and Shanda game expanded product line, so organizational capacity has become a bottleneck.　　But we think the situation will gradually improve. -Expanding the "Legend 2" mandate will boost short-term results: Our research data show that the flow of legend 2 grew by nearly 40% between August and October. Shanda Games are offering a unique experience through "Legends 2", "Legendary return" and "legendary World" to attract older players.　　We think, because the old players gradually return, so "Legend 2" will not because of the giant "Journey" and the loss of the player risk. -"The Tower of Eternity" bottoming out: "The Tower of Eternity," the problem with the NCsoft used by the anti-plug-in technology has a direct relationship. Shanda Games Management said the company also began to increase its anti-plug-in technology this August, so the problem will be controlled.　　We expect the fourth quarter of the v1.5 version of the Tower of Eternity to be upgraded.　　-2010 will release a variety of games: according to our observation, China's major network game company 2010 new game release Strength as follows: Tencent > Grand game = Perfect Space-Time (NASDAQGS:PWRD) = Jinshan > Other companies. We think that Shanda is an excellent choice for investors, and Tencent's valuation risk and NetEase (nasdaqgs:ntes) legal risks are too high. (PEI)