Barclays: Rich and diversified growth initiatives CMGE delivered a strong set of results, with 2Q14 total net revenues increasing 281% y/y (28% q/q) to
3Q growth guided to +237-257% y/y: CMGE guided 3Q revenues to be
Enriched games pipeline, aiming for quality: CMGE further enriched its games pipeline during 2Q, thanks to successful wins of IP for several well-known games from
Stronger distribution channels: CMGE noted its game centre app has been preinstalled in 35mn handsets so far and is on track for a total of 80mn this year. Potential new revenues coming from new user penetration as a result of strategic cooperation with a number of free wifi service providers will start to show initial traction and contribution in 4Q14, according to management.
Nomura: Closes chapter on restructuring process; Maintain Buy on abundant IP resources and solid growth Catalyst/action: curtain comes down on management restructuring; valuable IP may stimulate growth CMGE said that its
Independent Committee of the Companyhas completed its review of bribery allegations and did not find any evidence. It also said it has appointed former President Mr. Shuling Yingas its new COO. CEO Ken Jian Xiaoand Mr Shuling Ying'srecent share purchases of CNY10mworth of shares each further aligns the interests of management and the company.
Fine-tuning estimates; retain Buy and target price- We keep 2014/2015F sales largely unchanged and raise non-GAAP net profit by 14% and 6%, respectively, due to better operational leveraging. Offset by diluted shares from the follow-on offering, 2015 non-GAAP EPS is
Copyright 2014 ACN Newswire. All rights reserved.