Oppenheimer: Rice is still facing challenges or acquisition targets

Sina Science and technology news Beijing time of March 15 night, Oppenheimer released a study today, the rice Rice (nasdaq:taom) is expected to continue to face challenges in the near future.　　Oppenheimer slashed its revenue forecasts for 2013 years and raised earnings forecasts per share. The following is the full report: The quarterly revenue of Rice was in line with expectations, while profits were better than expected. Online business revenue fell 16% per cent year-on-year as rice continued to implement previous strategies to reduce recent commercialization initiatives. As a result of cost control measures and government subsidies, Rice's operating profit margin rose in the quarter. However, with the decline in online revenues and the shift to the offline business, the 2013-year profit margin of rice is likely to remain under pressure. Rice management forecast that the first-quarter revenue will be 8 million to 8.3 million U.S. dollars, better than the average analyst expectations, but still means more than 20% of the year-on-year decline. We adjusted the Rice's performance expectations to reflect lower growth rates and higher margin expectations. Despite the challenges of a competitive environment, the attractiveness of rice for long-term strategic investors is growing.　　The current corporate value of rice is about $25 million trillion and is likely to be a target for leveraged buy-outs or management acquisitions. The four-quarter revenue for Rice was 7.5 million dollars, in line with our expectations and analysts ' average expectations. Non-US GAAP shares yield of 0.07 dollars per share of ads, better than our estimated $0.02 trillion, and an average of 0.04 dollars expected by analysts.　　Revenue fell 13% from a year earlier, with online business revenues down 16% year-on-year, but offline business revenue grew 11% per cent year-on-year. In the quarter, the number of active accounts for Rice was 34.4 million, an increase of 27%, and a 41% decline in the chain. The number of paid accounts is 1.2 million, down 29% year-on-year, the chain down 29%. Average revenue per user (ARPU) for 5.22 U.S. dollars, the year-on-year growth of 19%, the chain growth of 11%. Rice is continuing to implement strategies to reduce the commercialization of child users.　　This will put further pressure on the 2013-year sales of rice. The gross profit margin of the four quarter of rice was 73.2%, the chain Rose 3%, but fell 8%. Non-US general accounting standards operating profit margin of 23.4%, the chain of 13% increase, up 9%. Excluding government subsidies, non-US general accounting standards operating profit margins are negative.　　In the 2013, the profitability of rice was under pressure due to the slide in online business revenues and the shift to offline business. This March, Rice started the closed test of the "Creative Corps", a licensed cartoon style action MMO.　　Rice is focused on developing products and commercialization for older children, and the "Fantasy Corps" third-person shooter game will attract such players. Rice is expected to have revenue of 8 million to 8.3 million in the first quarter, up 20% to 23% per cent year-on-year. We are expected to reduce the 2013 revenue from 40 million U.S. dollars to 37 million U.S. dollars, the share of ads per share revenue forecast from 0.02 U.S. dollars to 0.12 dollars. and analysisOn average, Rice was expected to have a revenue of $45 million in 2013, with an earnings of $0.11 per share ads. This adjustment reflects lower growth rates and higher margin expectations. (Zhang Fan)