Morgan Stanley awards time to increase rating

Sina Science and technology news Beijing time August 2 morning, Morgan Stanley published a study today, awarded to the era (NASDAQ:YY) stock "overweight" (overweight) rating, the industry outlook is "attractive" (attractive).

The following is a summary of the report:

Overall performance exceeding expectations: The second quarter of 2013, the total revenue was 409 million yuan, the chain growth of 30%, year-on-year growth of 118%, compared to the company's expected interval limit of 19% high. The operating profit of the time of the gathering was RMB 83 million, the chain growth of 28%, the year-on-year growth of 246%. In the second quarter, thanks to continued operating leverage, the profit margin of the gathering period was 20%, flat against the previous quarter, up from 13% in the same period last year. The second quarter of the gathering time net profit of 93 million yuan, the chain growth of 45%, year-on-year growth of 437%, far higher than our expected RMB 58 million yuan.

Music Business performance is strong: Thanks to the low revenue base, the music business has experienced rapid growth. In the second quarter, the business revenue was 171 million yuan, accounting for 42% of total revenue. The number of music service users reached 635,000, the chain growth of 28%, the year-on-year growth of 174%. Gathering time music business quarter ARPU for RMB 269 yuan, the chain growth 14%, year-on-year growth of 6%.

Web Game performance is gratifying: The Gathering era of Web game sales continue to become the company's important revenue source. The second quarter of the business revenue for 152 million yuan, the chain growth of 15%, year-on-year growth of 87%, accounting for 37% of the total revenue. Gathering times the number of users of web games paid 440,000, the chain growth of 5%, an increase of 61%. In the era of the Web game quarterly ARPU for RMB 346 yuan, the chain growth of 10%, the year-on-year growth of 16%.

Third-quarter revenue forecasts: The third quarter of the company's net revenue between 430 million to 440 million yuan, the chain growth of 5%-8%, year-on-year growth of 88%-92%, than our expectations higher than 15%-18%.

Gathering time management team will be in the United States Eastern Time August 1, 2013 Night 9 O'Clock (Beijing time August 2 9 o'clock in the morning), the financial results of the conference call. To listen to the teleconference live, U.S. investors can call +1-845-675-0438, international investors can call +1-855-500-8701, mainland China investors can call 400-1200654, Hong Kong investors in China can call + 852-3051-2745, the password is "20192203".

Valuation: We give the "overweight" (overweight) rating of the gathering time, and the industry outlook is "attractive" (attractive). Sail)