Paliresearch maintain grand Game buying ratings

U.S. Eastern Time December 2 morning (Beijing Time December 2) news, according to foreign media reported today, market research company Pali (hereinafter referred to as "Pali") to the Grand Game (Nasdaq:game) stock rating maintained in the "buy" (purchase) unchanged,　　and keep its target price unchanged at 15 dollars. Pali said the Grand game's third-quarter results were good in the 2009 fiscal year, but the forecast for fourth-quarter results was slightly weaker, in line with Pali analyst expectations, just below Wall Street analysts ' average expectations. Pali analysts saw the grand game's quarterly results as a minor setback, but also believed its first-quarter results would be better for the 2010 fiscal year, as some games are currently in beta and may be officially released in the first quarter.　　In addition, in seasonal terms, the first quarter is usually a period of strong performance for Shanda games. Pali analysts noted that while Shanda's expected fourth-quarter results were slightly weaker, it would not change the sustainability of Shanda's growth with its rich portfolio of gaming products, rich product development, and advanced operational capabilities.　　There is a grand game based on the business fundamentals and far below the interbank stock valuation, Pali maintain a grand game of "buy" rating unchanged. The following is the Pali analyst's specific expectations of Shanda's future: Fiscal year 2009 is expected to be weak in the first quarter of fiscal year 2010, but the results are expected to be better in the second half of FY 2009, which is expected to increase by 3% to 5% in the quarter, in fiscal year four, That's 191.9 million dollars to 195.6 million dollars, the value is in line with our expectations, but slightly below the average Wall Street analyst's expected $194.5 million trillion. Still, we think Shanda will be better in the first quarter of fiscal 2010 because it is expected to release new games in the first quarter (some games are in beta during the fourth quarter) and favorable seasonal factors.　　Shanda Games currently operates 31 games and is expected to release 4 new games per quarter. We believe that Shanda played a minor setback in the fourth quarter, but it does not mean that Shanda will stagnate after IPOs (IPO) like the Nasdaq:cyou and Giants (NASDAQ:GA) because of its rich and diverse portfolio of game products,　　Abundant development of products as well as advanced operational capabilities, is conducive to the grand game to achieve stable growth, so that it becomes better in the same company. Third-quarter results exceeded expectations in fiscal year 2009, with Shanda Gaming's third-quarter revenue of $186.3 million trillion, exceeding the average Wall Street analyst's expected $185.5 million trillion and our projected $184.6 million trillion. Not in accordance with the United States General accounting standards, Grand games in the third quarter earnings per share 0.24 dollars, the average forecast for Wall Street analysts was $0.03 trillion higher than our forecast of $0.02 trillion; in the third quarter of the US General accounting standard, Shanda played 0.20 dollars a share, exceeding the Wall Street analyst's average forecast of $0.18 trillion, and our expected $0.19 trillion.　　Shanda Gaming's operating margin fell to 33.1% in the third quarter, mainly due to a one-off non-cash equity payout. Valuation-We reaffirm the "buy" rating of the Grand game. Based on earnings forecasts of $0.96 trillion (under US GAAP) and 15.5 times multiples per share for fiscal year 2010, we maintain a $15 target price unchanged for Shanda games.　　We will revise the Grand game 2010 fiscal year revenue forecast from 925.6 million US dollars downward to 900.7 million US dollars, but maintains its earnings per share forecast unchanged. The risks faced by Shanda games include: 1 games Plug and Play, 2 concentration of income, 3 competition, 4 management lack of experience in communication with Wall Street; 5 regulatory change; 6 regulators increase. (Tangfeng)