(Nasdaq: CMGE), a leading mobile game company in China.
" />
English | 简体中文 | 繁體中文 | 한국어 | 日本語
Monday, 13 October 2014, 19:00 HKT/SGT
Share:
China Mobile Games & Entertainment Group Fundamentals Still Solid; Buy into Dips

HONG KONG, Oct 13, 2014 - (ACN Newswire) - CICC maintain "BUY" rate and raise the target price by 32% from US$19 to US$25 on China Mobile Games and Entertainment Group Limited ("CMGE" or the "Company")
(Nasdaq: CMGE), a leading mobile game company in China.

3Q14 rev. close to high end of guidance, pipeline strong
CICC expect 3Q14 revenue to grow 245% YoY / 23% QoQ to Rmb338mn, and non-GAAP NI to grow 213% YoY / 24% QoQ to Rmb78mn. Strong results were helped by Super Hero, Tiantian Hero, and increasing revenue from self-developed card & board games.

Trends to watch
Winner in the consolidation of mobile game publishing business.
CICC see that CMGE has benefited from mobile game publisher consolidation and has been taking more and more market share. CICC favor CMGE's independent role as a mobile game publisher and believe industry growth coupled with market share gains can help CMGE deliver strong performance.

Strong 4Q14 pipeline to contribute to rapid growth in 2015.
CMGE launched CA (FPS) and The New Legend (APRG) in late September, both delivered monthly gross billings of over Rmb20mn. CMGE has a robust pipeline in 4Q14, CICC believe Feng Zhong Qi Yuan (the same IP as the popular TV drama), Age of Discovery, Naruto and One Piece are among the most awaited games.

Management concerns to disappear with smooth operations.
The market is over-concerned with CMGE's management issues. As the company performs well, market concerns will gradually be erased, and corporate restructure will prove to be more efficient as margins improve.

Valuation and recommendation
CMGE's share price was at one point 100% higher than the last call in August; though it experienced a pullback due to systematic risk, the current share price is still 18% higher than the initial coverage on August 5, 2014. CICC lower 2014 EPS by 11.5% to Rmb8.6 and increase 2015 EPS by 10.3% to 15.4. CICC believe the recent correction provides a good opportunity to buy and raise the target price by 32% from US$19 to US$25, as removed the management risk discount of 20% and raised 2015 earnings forecast by 8.3%. Maintain BUY rating. TP represents 2014/15 PER of 18x/10x.

Topic: Press release summary Sectors: Media & Marketing, Daily Finance, IT Individual, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network


Copyright © 2025 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

 

Latest Press Releases
Trust Swiftly Launches AI-Fighting Identity Verification Platform with Public Bounty Challenge  
Mar 15, 2025 09:00 HKT/SGT
Lit Studios enters into MOU with Bingo Group, a Hong Kong listed company  
Mar 14, 2025 20:45 HKT/SGT
Gain Therapeutics Doses First Participant in Phase 1b Clinical Trial of GT-02287 in Parkinson's Disease  
Mar 14, 2025 19:54 HKT/SGT
Approval in Principle (AiP) for the Basic Design of a Large Ammonia-Fueled Ammonia Carrier Obtained from Classification Society  
Friday, March 14, 2025 5:37:00 PM
Toyota Launches All-New Crown Estate in Japan  
Friday, March 14, 2025 4:22:00 PM
Probowangi Toll Road Package 3 Reaches 74.9% Completion, WIKA Supports Logistics Efficiency and National Connectivity  
Mar 14, 2025 16:00 HKT/SGT
Habitat for Humanity offers up to US$40,000 in grants for innovative youth-led housing solutions in Asia-Pacific  
Mar 14, 2025 09:18 HKT/SGT
TreasureNFT Introduces New Features to Enhance NFT Trading Efficiency  
Mar 14, 2025 08:00 HKT/SGT
Future of airport operations to take centre stage at inter airport Southeast Asia conference  
Mar 14, 2025 07:58 HKT/SGT
CleverTap partners with upGrad to build a Deep Learning Track to upskill Marketers with Hands-On AI & Analytics Training  
Mar 14, 2025 04:00 HKT/SGT
More Press release >>
 Events:
More events >>
Copyright © 2025 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Cookies Policy | Privacy Policy | Disclaimer | Terms of Use | RSS
US: +1 214 890 4418 | China: +86 181 2376 3721 | Hong Kong: +852 8192 4922 | Singapore: +65 6549 7068 | Tokyo: +81 3 6859 8575