Software & Services Tencent "A Strong 3Q Driven by New Games" research, Software, exceeding, Tencent, percentage

yangruoxin

Pls see attached the full PDF research report, below is a highlight:
Key Points:
◆     3Q revenue may reach Rmb2bn, representing QoQ growth of 25%+ and YoY growth of almost 100%. The gaming sector could be the main growth engine with PCU of two new games, Dungeon and Fighter and Cross Fire, exceeding 800k and 600k, respectively.
◆     Margin decline. We expect gross margin to have declined because of the increasing percentage of licensed games and increasing content costs related to the Olympics and increasing S&M expenses for new games.
◆     EPS for 3Q may reach Rmb0.40, beating Bloomberg consensus for 8% growth.
◆     Our 2008 revenue forecast is Rmb7,141mn, EPS HK$1.70. Our 2009 revenue forecast is Rmb9,348mn, EPS HK$2.27. The stock is currently trading at the low end of its P/E range.
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