Morgan Stanley ratings The Grand game stock as overweight

Lead: Morgan Stanley published its investment report in Tuesday, rating the Shanda game stock as "overweight" (overweight). The following is a summary of the report: Shanda Games in the third quarter of 2010 revenue for the 1.096 billion yuan, the chain fell 1%, down 14% year-on-year. Operating profit of 306 million yuan, 1% higher than our expectations.　　The United States depository shares diluted earnings of 1.02 yuan, and the second quarter of this year is 1.06 yuan, the third quarter last year was 1.32 yuan. Positive factors: 1 The average income per user (ARPU) of large multiplayer role-playing games (MMORPG) and casual games grew by 2% and 21% respectively, mainly driven by independent research and development games. 2 "Dragon Valley" performance is strong.　　3 in the fourth quarter, sales are expected to increase by 3% to 5%, while the first three quarters of the quarterly revenue decline. Negative factors: 1 The number of active paid subscribers (APA) for MMORPG and leisure games decreased by 4% and 10% respectively. 2 Operating profit margin of 28%, the chain down 1%, year-on-year decline of 5%, mainly due to the increase in research and development and promotional costs.　　3 "star Change" (Legend of Immortals) was postponed to the first quarter of 2011. Grand Game Prospects: 1 currently has 28 MMORPG games and 8 leisure games, the next 6 months will also launch 3 main games. 2 Grand Games has a variety of overseas game agent rights, such as "surprise" (sudden Attack), "Final Fantasy XIV" and "Champions Football manager."　　3 through its Game investment fund capital, Shanda game has invested 42 games (or game developers), the total investment reached 700 million yuan. We rated the grand stock as overweight. (Li Ming)