Maintain the perfect world stock Overweight rating

Morgan Stanley today released its investment report to maintain the "overweight" rating of the Perfect World stock (NASDAQ:PWRD).

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

The Perfect World will be released in the second quarter of the 2013 financial year after the U.S. stock market closes August 19, 2013, and will be on the night of 9 o'clock (Beijing time August 20 9 o'clock in the morning) to hold a earnings conference call.

We anticipate:

1 The second quarter of the total revenue will reach 684 million yuan, the chain growth of 10%, year-on-year growth of 1%. The guidance of the perfect world is expected to be RMB 656 million to 687 million yuan. We expect that the game revenue will reach 645 million yuan, the chain growth of 16%, the year-on-year growth of 3%. Overseas authorized revenue will reach RMB 39 million yuan, the chain growth of 30%, year-on-year decline 17%.

2 operating profit will reach RMB 95 million yuan, the chain fell 28%, down 38% year-on-year, mainly by higher marketing costs. Operating margins will reach 14%, compared with 21% in the previous quarter and 23% for the same period a year earlier.

3 The net profit will reach RMB 95 million yuan, the chain Falls 27%, falls 40% year-on-year. Diluted earnings per share will reach RMB 1.95. As a result of higher marketing costs, the perfect world actually diluted earnings per share may be lower than expected.

"Holy Warrior Star": May 16 public test, we expect two weeks after the maximum number of online players and more than 100,000.

"Laughing and Proud": June 28, the highest number of online 300,000.

Valuation: We continue to maintain the "overweight" rating of the perfect world stock.