US investment company reports comments on Chinese online gaming company's recent performance

U.S. investment company Brean Murray, Carret recently published a report on NetEase, perfect time and space, and Tencent's recent performance in the game business, pointed out the positive factors and challenges faced by companies. The following is the main content of the report: NetEase: "World II" shows the growth momentum, with "World II" of the latest information released at the end of September, the number of players in the game appears to be a large increase, mainly reflected in the number of servers and server utilization increased. As a result, we expect the game to show significant revenue growth in the fourth quarter. But we think the decline of World of Warcraft may offset this positive phenomenon, because the wrath of the Lich King is still being challenged. With NetEase in the three or four-line city to promote the game, players seem to have reservations about the fairness of the game, because many players are using the game bugs to improve the level of their game characters, but NetEase is trying to repair this.　　In addition, we observed an active "outsourcing" phenomenon in the game, in which players pay a third party to upgrade their characters to the desired level before participating in the game, which may eventually limit the player's time to play. Perfect Time and space: the Land of God is in focus. The current content of the perfect world seems to have stabilized over the past few weeks, but the downward trend in ghost legends has increased. We believe that the company will try to offset the current problems by enriching the game lineup by launching the "Magic Continent" on October 21. At the same time, the enthusiasm surrounding the "magic Continent" seems to have diminished, as the game dropped 4 places in the most anticipated game list after we released the last issue of the China games biweekly.　　Thus, perfect time and space may choose to increase marketing input around this game, thus increasing the player's understanding of the game while ensuring a high level of user base at the initial stage. Tour: The introduction of the information to the "Tianlong eight" will be helpful. "Tianlong Eight" introduced a new piece of information a few days ago, while the game's server level has improved slightly over the past two weeks and server utilization has increased. However, as we have discussed in our previous report, "Tianlong eight" needs to add new content in the face of the introduction of other competing games, and the new information appears to be at least a temporary solution to the problem. We continue to anticipate that "Tianlong eight" is at a more stable level, and the tour continues to invest in the next round of content development.　　At present, the company has not announced the "Deer Ding" release plan. Tencent: "Dungeons and Warriors" there has been a good recovery. Although the Dungeons and Warriors in the early part of the third quarter of the decline, but since the September launch of the film, the game seems to stand on a strong rebound, the index in the past few Sell-off has seen a large increase. Tencent's biggest game, "through the FireWire," also continues to show a more solid growth situation. We believe that China's shooting game market has the potential to continue to grow to several times the current scale, and Tencent through the merger agent games and independent research and development of the game efforts, will be able to better use this potential. Based on the current momentum, we think that the content of Tencent's game, the renminbi's recent appreciation of the Hong Kong dollar is a positive factor, so we will move Tencent's target share price to HK $195, that is, we have 32 times times the forecast of earnings per share of the company for the 2011 fiscal year. (Digging the shell net)