March 2 morning news in the U.S. listed Chinese online game stocks fell yesterday, the full price, all seven evaporation of the company's total market value of one billion U.S. dollars a night. Analysis pointed out that China's online gaming companies are into the adjustment period, performance or need to pick-up in about three quarters of the time, but still has a long term investment value.
Yesterday, the grand, grand game and a perfect space-time three companies released earnings.
Shanda in the fourth quarter net income of which approximately 54.1 million U.S. dollars, an increase of 13%, represents a decline of 15%; Shanda's games in the fourth quarter net profit of 60.8 million U.S. dollars, an increase of 44%, ring up 13%; perfect space-time Net income for the fourth quarter of 39.7 million U.S. dollars, up 117.0 percent, the chain fell 6.1%.
Unsatisfactory earnings immediately affect stock prices. Yesterday's pre-grand game has fallen 13 percent share, while its opening fell 1.28 U.S. dollars, to 6.99 U.S. dollars, or 15.48%. By the close, the grand game has fallen to 6.81 U.S. dollars stock, or as high as 17.65%
In the grand game, a fortune that day reported that both the other two online games company's share price fell sharply, closing down 10.57% grand, the perfect space-time fell 8.89%. In addition, the U.S. stock market China's online gaming stocks declined across the board, giant fell 2.45%, down 1.42% Netease, surf down 0.72%, NINETOWNS down 0.14%.
Been the case directly to the fuse, including a perfect space-time performance slipped, while Shanda's games are also expected in the first quarter of its total revenue would be lower by 10% to 15%. This has to a certain extent, affected the investors confidence in China's online gaming stocks as a whole.
7 US-listed Chinese online game companies, a total evaporation of one billion U.S. dollars a night market. These enterprises have been treated as Excellence in China's Internet and the maximum profit winners.
Citigroup today upgraded shares of Shanda's game rating lowered to "hold" at the same time lowered its target price to 9.00 U.S. dollars. Citigroup said the game is still unable to see the grand average revenue per user when we can return to normal levels, while United States is not recommended investors to sell shares Shanda games, pointing out that the fair value of Shanda stock should be 7.00 U.S. dollars.
At the same time, JP Morgan General to maintain a grand game "overweight" rating and lowered the target price to 11 dollars, but also pointed out that the valuation of Shanda's games has been low. JPMorgan Chase believes that Shanda's games take two to three quarters of good results, in order to win back investor confidence, propelling the stock.
On the other hand, the perfect space-time is also a conference call yesterday, expects revenues in the first quarter, compared with 2% -6% growth, profit margins are also expected to rebound in the near future there will not be because of a one-time expenditures.
Analysts pointed out that China's online gaming companies experiencing rapid growth in a row, after entering an adjustment phase. But analysts generally believe that these public enterprises still have more channels for different games, still has a long term investment value, while the online games seating between enterprises took place during this period may also be fine-tuning.
