Morgan Stanley maintains perfect world stock holding

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The March 11 Evening News from Beijing time, Morgan Stanley released its investment report today to maintain the perfect world stock (NASDAQ:PWRD) "Hold-Wait" rating.

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

After the perfect World released the quarterly results of fiscal year 2013, we continued to maintain the "hold-and-see" rating of its stock. Thanks to the mobile game, "The Return of the" Condor Heroes and Client Game "sin" strong performance, the perfect world fourth quarter revenue for RMB 914 million, the chain growth of 10%, year-on-year growth of 34%, and the company's guidance is expected to grow 25 % to 31%. Mobile gaming revenue accounts for nearly 10% of total revenue. But based on non-US GAAP, operating margins are only 12%, while the third quarter is 16%, and fiscal 2012 is 10%, mainly because of higher marketing and research spending. The perfect world predicts that revenues will grow 36% to 43% year-on-year in the first quarter of fiscal 2014, falling 3% to 8% on a month-on-month basis, mainly due to seasonal downturns.

Quarter Four, the perfect World Network game revenue for 844 million yuan, the chain growth of 12%, the year-on-year growth of 41%. Authorized revenue for 49 million yuan, the chain growth of 24%, an increase of 33%. Other revenue for the 22 million yuan, the chain and year-on-year decline of 50%. Based on non-US general accounting standards, operating profit of 109 million yuan, the chain fell 17%, an increase of 62%. Operating profit margin was 12%, while the third quarter was 16%, and fiscal 2012 was 10%. Each share of the United States depository shares diluted income of 4.18 yuan. By the end of the fourth quarter, the perfect world had a net cash of 430 million yuan, accounting for about 35% to 40% of the company's market value.

Quarter Four, the perfect World domestic game average at the same time online number of 803000, the chain growth of 3%, the year-on-year growth of 30%, mainly thanks to the "DOTA 2" commercialization.

We continue to maintain the perfect world stock "hold-wait" rating.