Second-quarter income rose 30%

　　The is mainly driven by Tianlong eight 3 and the Divine Comedy of war, which also offsets the weak performance of the pinball Hall. The unit corresponds to a 2012-year price-to-earnings ratio of about 4.5 times times, and the upcoming new games (6 3D games) are largely not reflected in the stock price. Benefiting from strong free cash flow, the company announced a special dividend of $3.8 per share of ads (US depository shares) (dividend yield is about 20%).

The second quarter of the trip to achieve revenue of 147 million U.S. dollars, an increase of 30%, compared to our expectations 3%. Thanks to improved cost control, the revenue per share of ads is 1.29 dollars (up 13%), 18% higher than we expected.

We are optimistic: 1 benefit from the "Tianlong eight 3" growth and "the War of the Divine Comedy," The strong performance of the total game income growth of 35% year-on-year, to achieve the total income of 93%. Web game revenue also grew by about 39% a year, accounting for about 12% of its total income (9% in the last quarter) and 2 for the third quarter, which was expected to grow 4% to 7% (up from 19% to 22%), and 3 for net cash of about 465 million dollars, accounting for about 45% of its market value. The company announced a special dividend of $3.8 per share for ads (totaling $201 million) and a dividend yield of about 20%.

We are concerned: 1 Although cost control is better than expected, net profit is still falling by 1% to 47%. The third quarter is expected to continue to decline by 2% per cent, 2 because the tour to the "Tianlong eight 3" in the lower paid players to give props, its APA (active pay account) chain reduction 16%, the year-on-year decrease of 10%.

We calculated the target price of 44 US dollars according to the cash flow discount method. It is noteworthy that: 1 its web game affiliate Seventh Avenue plans to IPO in the US market. The company spent about 100 million dollars in the second quarter of 2011 to acquire a 68% per cent stake. Because Seventh Avenue has a strong free cash flow, we believe that the main purpose of this listing is to motivate employees and build the company's brand; 2 the "Comedy of the War" lifted the APA of Seventh Avenue to 12%.