Morgan Stanley to rank Shanda game stock as overweight

Beijing Time September 9 Evening News, investment bank Morgan Stanley in a study in Thursday, said Shanda Games (Nasdaq:game) in the second quarter of the performance is satisfactory, "Dragon Valley" has become the most popular new game this year.　　Meanwhile, Morgan Stanley rated the Shanda game stock as "overweight".　　The following is a summary of the Morgan Stanley report: Shanda game in the second quarter of the United States depository shares diluted income of 1.07 yuan (about 0.16 U.S. dollars), the chain fell 7%, year-on-year decline of 19%, than our expectations of high 1%. Positive factors: 1 After the introduction of the data in April and June respectively, the "Blood Legend 2" ecosystem improved. Large multiplayer online role-playing games (hereinafter referred to as "MMORPG") Revenue (accounting for 91% of total revenue) stabilized, down only 1% in the chain, while the first quarter of this year's MMORPG revenue fell 19%. 2 the "Dragon Valley" public testing phase of the highest number of online people (PCU) for 700,000, the most popular for this year's new game.　　3 The fourth quarter of this year and the first quarter of next year will have three new games launched. Negative factors: 1 third-quarter revenue expected to fall 5%, in part because the "Dragon Valley" only part of the revenue is counted into the third quarter, because the game was launched in the second quarter.　　2 Operating profit margin of 29%, the chain decline of 4%, mainly due to the increase in research and development and promotion of costs. Low hit: 1 Grand games currently operates more than 30 games, the fourth quarter of this year and the first quarter of next year will also have three new games launched. 2 The Grand game is scheduled to launch in the fourth quarter of this year, "star Change" (Legend of Immortals), one of China's 5 biggest games worth looking forward to. 3 Shanda Games enrich the game by diversifying its strategy, which will increase the efficiency of the game. 3 years ago, the grand game is to launch 3 new games each year, and now is 2 to 4 new games per quarter. 4 old games, "blood Legend 2" and "Legendary World" has been running for 6 to 9 years, longer than most games in China. 5) In addition to the "Blood Legend 2" and "Legendary World", Shanda games only 3 to 4 blockbuster games, meaning that the hit rate is only a lower 10% to 20%. (Li Ming)