Pacific Crown maintain yy run win market target price to 105 dollars

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Pacific Crest, the Pacific crown of the US investment Bank, released its investment report today to maintain the "outperform" rating of the stock (NASDAQ:YY), bringing its target share price from $62 to $105, the Beijing time said late March 5.

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

The music business is still strong in the gathering time, the decline of revenue cost makes me more confident of the market competitiveness of the gathering time. As for the education business, we consider it a long-term opportunity for development. To this end, we will be the era of the target price increase to 105 U.S. dollars.

Revenue growth accelerated in fiscal quarter 2013, the quarter of the year, the gathering time revenue of 101.1 million U.S. dollars, higher than we expected 84.8 million U.S. dollars. Grew 136% year-on-year, compared with a year-on-year rise of 116% in the third quarter. In the quarter, music business was the main revenue driver, the number of paid subscribers grew by 17%, and the average revenue per user grew by 26% a quarter. Lower-than-expected operating costs have boosted operating profit margins. In the quarter, we had a 0.60 dollar dividend per share at the time of the gathering, higher than our expected 0.42 dollars. In the first quarter of the 2014 fiscal year, revenue is expected to grow by 3%, more than we expected. We believe that, as in the past, the guidance revenue from the gathering time is expected to be relatively conservative.

Education platform for long-term development opportunities: gathered time recently released a new independent brand online education platform "100 Education" (100.com). This is aimed at capturing future long-term development opportunities, and we expect that the platform will only try small-scale commercialization in 2014 and 2015. The gathering era said it would invest in the educational platform, but those investments would not largely affect margins in the short term.

Valuation: We continue to maintain the "outperform" rating of our share of the era, bringing the target share price from 62 US dollars to 105 dollars.