PiperJaffray maintains perfect World overweight rating

Sina Science and technology news Beijing time August 23, the U.S. investment bank Piper Jaffray today published a study to maintain the perfect World (NASDAQ:PWRD) stock "overweight" (overweight) rating, the target price of 32 U.S. dollars. The following is a summary of the report: We continue to recommend the unit after the perfect second-quarter results are far more than we expect on Wall Street. The company achieved a revenue of $120.6 million trillion in the second quarter, more than we expected in 106.7 million dollars, mainly because 110.2 million of dollars in online gaming revenue exceeded expectations (our forecast was $96.8 million). The 0.93 dollar earnings per share exceeded our forecast of $0.50 (Wall Street's average forecast of $0.59), due to rising incomes and lower operating costs than expected. The company's third-quarter revenue guidance forecast was 116.96 million to 124.2 million US dollars (756 million to 803 million yuan), higher than our 114.4 million dollar forecast, and higher than the 112.8 million dollar Wall Street average.　　We gave the perfect world stock "overweight" rating, with a target share of $32, equivalent to 11.2 times times earnings per share expected in 2011. Second-quarter results were far more than expected. The perfect world in the second quarter to achieve revenue of 120.6 million U.S. dollars, the chain growth of 9.5%, beyond our 106.7 million dollar forecast and Wall Street 109.8 million dollar average expectations. Earning 0.93 dollars per share, more than we expect in 0.50 dollars and Wall Street's average of 0.59 dollars, because of rising incomes and lower operating costs than expected. Online gaming revenue reached 110.2 million U.S. dollars, the chain growth of 11.7%, more than we expect 96.8 million dollars. Overseas authorized income of 9.6 million U.S. dollars, slightly lower than our 9.9 million dollar expectations, reflecting the overseas market for the reduction in the number of new games to reduce the licensing costs.　　The other income is 9 million dollars. The performance of the core games is strong and business leverage drives net profit growth. The core game of the Perfect World, "the Immortal" and "The Perfect World 2" are still very popular with players, the October 2010 release of the "Magic of the mainland" and March 2011 released the "Ghost World" and other new games still strong performance. The operating profit rate for the second quarter was 41.1%, which grew 380 basis points, far exceeding our 26.8% per cent forecast, mainly because sales and management costs were lower than expected.　　The former accounted for 17.1% of the revenue, below our 24.5% per cent estimate, while the latter accounted for 8.9% of the revenue, less than we had expected in 12.5%. Overseas markets continue to contribute revenue, and the game pipeline predicts future growth prospects. Overseas markets remain a meaningful source of revenue, contributing about 25% of the revenue in the second quarter. The company continues to expand its pipeline by diversifying into the field of web games and social gaming. On August 18, the 2D MMORPG (large multiplayer online corner) was sealed and independently developed.Color Play game), the company will fully test the game. We expect the "Holy Warrior Star Online" to be released in FY 2012 with two other new games, which are based on a new 3D MMORPG developed by the Japanese manga "Saint Fighter Star".　　We believe that the company will release "The Immortal" and "The Perfect World 2" in the next few quarters of the documentary. Risk: Ability to develop and authorize new intellectual property, economic uncertainty, competition, shortened game life, executive power, product cost increases, pricing and government regulation. (Si yuan)