JPmorgan Asia Pacific Equity Research 27 February 2008

China Daily Views

Shanda Interactive
Entertainment Ltd Overweight
4Q07 Review: Solid numbers once again, maintain
sector top-pick
$30.83
25 February 2008
Price Target: $43.00
China
Internet
Dick WeiAC
(852) 2800-8535
dick.x.wei@jpmorgan.com
Imran Khan ‡
(1-212) 622-6693
imran.t.khan@jpmorgan.com
20
25
30
35
40
$
Feb-07 May-07 Aug-07 Nov-07 Feb-08
Price Performance
YTD -1M -3M -12M
Absolute -7.5% 5.0% -2.1% 23.7%
Source: RIMES, Reuters.
www.morganmarkets.com J.P. Morgan Securities (Asia Pacific) Limited
J.P. Morgan Securities Inc.
‡ Employed by JPMSI
See page 48 for analyst certification and important disclosures, including investment banking relationships.
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• Shanda revenue of US$97.8M (up 52% YoY, 9% QoQ), above
guidance of 4%-7% QoQ growth vs. JPM and consensus estimates
of US$92.3M & US$93.4M. GAAP diluted EPS of US$0.54, vs.
JPM estimates of US$0.44 vs. consensus of US$0.45.
• Shanda’s diversified game portfolio delivered the upside. With
around 20 games in operation and ~15 more in the pipeline,
Shanda boasts the most diversified platform among listed game
companies. While we forecast single-digit sequential revenue
growth in coming quarters (driven by quarterly game updates,
marketing, growth in internet & broadband penetration, etc), 2Q08
launch of widely-expected Chang Chun online could add upside to
our forecast. Shanda’s 3“C” strategy of further expanding
Contents, improving stickiness of its gamers Community, and
Commerce system (item trading and direct point card sales),
should further solidify Shanda’s leading position in China game
industry. Shanda remains our top-pick in China game sector.

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[此贴子已经被作者于2008-3-1 9:46:52编辑过]