Pacific Atlas Securities released today research report

Rice washing: Performance expectations update

We expect the third-quarter revenue of Rice for 2013 to be 13.3 million U.S. dollars, higher than the previous forecast of $12.5 million trillion, with a earnings of $0.06 per share, below the previously expected 0.08 dollars. Revenue for fiscal year 2013 was expected to be $9.5 million, higher than the previous forecast of $9.1 million trillion, with a yield of $0.04 per share, below the previously expected $0.05 trillion. Revenue for fiscal 2013 is expected to be $44.4 million, higher than the previous forecast of $40.4 million trillion, with a yield of $0.14 per share, below the previously expected $0.19 trillion. Revenue for fiscal year 2014 is expected to be 50.2 million U.S. dollars, earning 0.20 dollars per share.

Investment theme:

We have always feared that Rice would face similar risks as other Chinese online gaming companies, but there is a valuation premium. The risk of Rice's valuation has dropped sharply, but the underlying risk remains high after the recent performance of underperforming performance. Compared with other Chinese online gaming companies, there are some key differences between rice washing, such as less competition, revenue from off-line business, and low development costs. But at the same time, Rice also faces some similar risks, such as the concentration of revenue, the risk of introducing popular games, the rapid growth of development and marketing spending and competition from Tencent (0700.HK). (Tangfeng)