The door to the United States closed to Chinese game manufacturers?

After the grand game, the giant game, the perfect World Chairman Chi recently also made the determination to withdraw from the U.S. stock market. And the new game manufacturers to list or choose a domestic a-share, or such as flying fish technology, Blue Port Interactive Landing Hong Kong stocks, last year chose to go to the U.S. listed touch-controlled technology has failed to go, the door to the United States seems to be closed to Chinese game manufacturers.

The tide of retreating city

The perfect world announced that the Board of directors had received a preliminary non-binding privatisation agreement issued by the company's founder and chairman Chi at the end of last month. Under this privatisation agreement, CHI will use cash to buy the perfect world at $20 a share of the US depository stock, except for all the other shares that he holds outside of his own stock.

With the proposal, the perfect world rose 3.49 U.S. dollars during the regular trading of the Nasdaq Stock market on 2nd this month, at $19.25, or 22.14%.

The perfect world to start privatisation also indicates that it will become a giant network, after a grand game, but also to start privatization from the United States retreat from the city of the game company.

The Giants ' network was launched at the end of last July. Giant network in the privatization process through the internal transformation, to the subdivision direction layout. Giant network After the split, go more focused on the division of Development routes, hope to be favored by the capital market products listed separately.

and 3 months after the giant's network announced privatisation, the grand game also made a decision to retreat from the U.S. stock market. The process of privatization is still in progress. Previously, the perfect world has also participated in the grand game of the privatisation consortium. Some insiders believe that the perfect world was hoping to make further decisions on the basis of the observation of giants, Shanda games, and the market response of the domestic or Hong Kong listings. But see Shanda is more than the division of food Business and stripped, the perfect world chose to quit.

If the perfect world from the U.S. stock market retreat, remain in the U.S. stock of the traditional game enterprise only nine city, swim, in addition to the Chinese hand tour, Le Tease as the representative of the Hand Tour enterprises. It is noteworthy that touch technology, which was intended to be listed on the Nasdaq, also cancelled the plan.

Lower Valuations

In fact, the domestic gaming industry, especially the traditional end-travel areas of recent development slowed down. According to the latest data show that the third quarter of last year, China's client network game market overall size of 14.088 billion yuan, the chain growth of 1%, the year-on-year decline of 1%; the overall size of the mobile game market is 7.265 billion yuan, the chain growth of 9.2% The market size of the Web game reached 5.66 billion yuan, an increase of 5.1% in the last quarter, an increase of 24.2%.

As the industry to achieve saturation and regulatory efforts to strengthen the game market development bottleneck, is advertised as the most lucrative game industry has been worse than before. The capital market realizes that gaming companies cannot guarantee growth, so they are less interested in investing.

According to industry analysis, the reasons for the privatization of game companies, and its market value in the U.S. capital market is undervalued has a direct relationship. As Chen, CEO of Shanda, said, "Wall Street does not understand the Chinese game", the large client game companies in the U.S. market has long been not optimistic, so the traditional gaming companies have been left out of the cold.

While there were still overseas-listed gaming companies last year, overseas recognition of Chinese gaming companies remained unchanged, with P/E and share prices still falling.

Analysts at the country's third-party research institute say that because gaming companies are driven by gaming products, their revenues are dependent on their products and are therefore subject to many limitations. And the product cycle is very short, coupled with contingency and other factors, it is difficult to obtain recognition of U.S. capital markets. Game companies do not want to embarrass themselves, preferring to choose more active domestic capital market.

At present, in addition to the 50 times-fold price-earnings ratio, the grand P/E ratio is only 6.76 times times, perfect before announcing the privatisation proposal is less than 8 times times, while the Nasdaq average p/e is about 20 times times. However, the price/earnings ratio of the domestic-listed gaming companies remains at a high level. A shares listed in the Sino-Green PO earnings ratio of 150.4 times times, palm-fun technology for 75.72 times times, the gods Interactive backdoor branch of the wood industry's earnings ratio of 68.05 times times. And earlier, some Chinese game enterprises, such as Mo Lin, Nibiru, huaqing flying, etc. are also spread to the domestic listing of the news.

It is clear that the domestic capital market is impressive compared to the U.S. stock price earnings ratio. Although Hong Kong stocks do not have a high domestic valuation, the data show that there is some attraction. The two-year-ago-listed IgG and Burson interactive P/E ratios were 60.951 times times and 15.441 times times respectively, while the new-jin Flying Fish technology now has a P/e ratio of 40.869 times times.

"Compared with U.S. stocks, investors in the A-share and Hong Kong stock markets know more about the domestic gaming industry and are more willing to risk the uncertainty of gaming companies," he said. "Analysts told the Beijing Business newspaper reporter, because close to the market environment, domestic investors through more thorough research industry development, also can grasp the enterprise movement, so willing to put the capital in the game this easily realizable industry." And the huge difference of valuation, also become the net swims in the share of privatization, return a share of power.

The pressure of Alexander

The Perfect World's 2014 quarterly financial report, released last November, showed that the company's three-quarter total revenue was 974 million, up 18.7%, and the net profit attributable to shareholders was 60.7 million yuan. But share prices have been falling as a result of lower-than-expected earnings, December 16, when shares fell to the lowest level of $14.87/shares in the year.

Analysts said that the current U.S.-listed gaming companies face the performance pressure is very large, business is not expected, resulting in lack of confidence, which is also the company from the U.S. capital market retreat from the big reason. The traditional game enterprise's day is even worse, the handset game development tendency dictates, but the perfect world in the hand tour market performance also is not ideal.

"On the other hand, domestic policy is tightening, there is policy control, the introduction of foreign capital will be reduced, the U.S. listing is not good to achieve." Analysts added that the cost pressures for overseas listings are huge, and that the cost of operating both before and after the IPO is not easy for some new gaming companies.

Compared with U.S. stocks, last year Hong Kong and a shares were very active, a-share listed game company's mergers and acquisitions have been widely concerned. Revenue growth rate is very fast, such as in the third quarter of the sales of green Bao 125 million yuan, an increase of 82.95% per cent, palm technology three quarter revenue for 221 million yuan, the year-on-year increase of 129.37%. Hong Kong stock game listed companies, in addition to Tencent, the giant, the net Dragon's three-quarter revenue for 235 million yuan, an increase of 6.1%, while the three quarterly revenue for 139 million yuan, the year-on-year growth of 118.7%.

Although the mainland and Hong Kong capital market conditions are very objective, the mainland's valuation of gaming companies is higher, but some game companies still choose to Hong Kong listing. The reason, analysts explain, a-share listed companies show a clear monopoly, basically through mergers and acquisitions investment expansion, investment institutions will not be loyal to this model. "While the Hong Kong market is relatively open, the valuation of gaming companies is not as high as that of the mainland, but it is more dynamic, especially in terms of hand travel," he said. ”

There are insiders believe that in the hand tour industry adjustment period, the first to seize the market to live more important, research and development and operations require a large amount of capital investment. For the Hand tour enterprises, in order to gain a foothold in the market and listed financing is very important, and for the traditional game enterprises, to move to the hands of the market to do the investment to make its profit pressure is huge, long-term down will affect its long-term competitiveness.

The giant's president, Guixe, had previously said that the company's operating pressures were very large in the past quarter, and that it often led to corporate strategic myopia and problems in product planning. "Privatization happens to give the giant a breather." ”