Reaffirming the "overweight" rating of the Times

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

The gathering period will be the U.S. Eastern Time August 1 after the U.S. stock market close to release the second quarter earnings. We believe that the gaming and music business of the gathering era will remain strong, so that the results of the second quarter will be at least the same as expected, or even exceed expectations. We reiterate the "overweight" rating of the stock-gathering period, with the target price being reassessed after the earnings release.

Second-quarter forecasts: We expect revenue to reach $55.3 million trillion in the second quarter of the gathering, with $0.21 per share diluted. Wall Street's expectation is that revenues will reach $55.6 million trillion, with a thin profit of $0.21 per share. We believe that the gathering time will at least meet that expectation, or even exceed that expectation. We also expect online gaming and music business revenues to grow by 11% and 7% per cent, respectively.

"Fast Man" attracts the audience but the competition is intense: gathers the time this May this year already with Hunan Satellite TV and its subordinate subsidiary company to sign the exclusive cooperation agreement, will Hunan satellite TV comprehensive Art Talent show "2013 Happy male Voice" to introduce the gathering time interactive internet platform. July 19, "Fast Man" on Sina Weibo has 3.5 million related news, 2.1 million people participate in the discussion forum. At the same time, "Fast man" is also facing strong competition, with 9 major provincial TV stations launched a similar program. We believe that the "fast man" will bring about 3 million dollars in the gathering time cost, the third quarter will achieve balance of payments. One of the biggest benefits of this collaboration is bringing in more mainstream users, thereby eliminating the industry's previous skepticism: that the users of the gathering era are mainly game users. If the cooperation is successful, it may also stimulate other TV stations to cooperate with the gathering times in the future.

Valuation: We reaffirm the "overweight" rating of the time of the gathering, while maintaining a 40 dollar target share price unchanged.