reiterated that the net Dragon shares hold the rating, and raise target price to HK $25.50

Haitong International released its investment report today, reiterating that it has a rating and raised its target price to HK $25.50.

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

Looking for new opportunities. After selling valuable assets, the Cyber Dragon is looking for opportunities to replicate the successes it has achieved in the mobile Internet arena. It is said that the Cyber Dragon has acquired a number of easy to remember domain names, including 11.com and 101.com, which may turn into a navigation page or Web game or mobile application publishing site, and in the future in the online gaming business to provide new sources of growth. However, given that the current online gaming business of the Cyber Dragon has grown much faster than its mobile internet business and the predictability of other assets in the company has been limited, we have reiterated the company's holding rating before issuing a special dividend and raised its target price to HK $25.50.

The special dividend is set at HK $7.77 per share. The net Dragon confirmed the sale of the 91-wireless special dividend to HK $7.77 per share, while the day of dividend payment and the distribution date were set for October 29, 2013 and November 6, 2013 respectively. We expect that the net cash remaining in the company will be around 4 billion trillion yuan after the special dividend is distributed, a large proportion of which should be spent on existing fast-growing businesses, including education and the expansion of SME software and potential mergers and acquisitions opportunities in the mobile internet sector.

More games will be launched in the future. The company currently has more than 10 mobile games in operation and another 10+ new game in development. The network Dragon plans to launch 4 to 5 new mobile games each year in the future. And the company's existing network game expansion package and new client games will be launched in the coming year. We expect its online game sales to continue its earlier growth.