Morgan Stanley maintains the time of gathering and overweight rating

Sina Science and technology news Beijing time, August 1 morning, Morgan Stanley published a study today, the NASDAQ:YY share rating to maintain the "overweight" (overweight) unchanged, and the company's second-quarter results were expected.

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

Summary: The gathering time will be in the U.S. Eastern Time August 1 (Beijing time August 2) after the U.S. stock market closed the second quarter of the 2013 financial year Report, followed by the U.S. Eastern Time August 1 21 o'clock (Beijing time August 2 9 o'clock) conference call to read the earnings points, and to answer questions from investors and analysts.

Second-quarter results of the gathering time:

1) We estimate that the total revenue for the second quarter of the gathering period was 343 million yuan, up 82% from a year earlier, with the company expecting to grow 78% to 84% year-on-year;

2. We expect the operating profit for the second quarter of the gathering period to be 67 million yuan, a 1.8 times-fold increase over the same period last year; operating profit margin of 19%, lower than 20% in the previous quarter, but higher than the same period last year 13%;

3. We expect net profit for the second quarter of the gathering period to be 58 million yuan, 2.3 times times higher than the same period last year, and a share of U.S. depository receipts in the US $0.98 trillion yuan.

Quarterly Results Focus:

-Web game growth: China's web game market is growing strongly, including YY, the main web game platform has continued to benefit from it. We expect sales from web games to be 141 million yuan in the second quarter of the gathering period, up 73% from a year earlier;

-With the Hunan TV "Happy Boys" cooperation: The Gathering time for "Happy boys" players to provide a platform to interact with the audience, on this platform, the gathering time can be derived from the sale of virtual gifts income. The use of "Happy boys" cooperation, the era of the gathering can be its game-centric user base to expand to non-gamers. Even so, the licensing cost of happy boys could lead to a fall in third-quarter profit margins.

-Progress in the mobile business world: We observe that new mobile apps in the gathering era provide more video streaming playback and broadcast features that may enhance interactivity. In our view, the commercialization of mobile applications should be the extension of YY pc-based services. On the mobile platform, virtual merchandising and VIP members are likely to be the way to achieve commercialization. (Tangfeng)