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Tuesday, December 4, 2007

Let's Play Game

Don't know where to invest in the hot Chinese market? How about invest at something fun and growing? The Chinese online game industry is expecting to growing rapidly and is the hottest sector in China.

Here are the list of Chinese online game companies:
  • The9 Limited(NCTY): The Shanghai based company makes online games and has licseeses to operate multiplayer online RPGs such as War of Warcraft and online soccer game FIFA Online. The company has been growing rapidly for the past few years from $4.4 million in revenue in 2004, $57 million in 2005 to $126 million in 2006. Net income has also increased more than times from $3 million to $40 million during the same period. The stock is currently trading at $24.03 at P/E ratio of 18.12
  • Inc. (NTES): The Beijing based company is a diversified internet company with presense in Internet portals, wireless value-added services and online games. Recently the company posted a decline in third quarter profit which also hurt the stock performance. However the company has been buying back the stock which is a postive sign. The stock is trading at $20.74 with P/E of 17.2.
  • Giant Interactive Group(GA): the Shanghai based company focus on multiplayer online game. The company recently posted strong third quarter earning with $290 million yuan in revenue compared to $114.9 million revenue and is expected to earn $425 million yuan for the next quarter.
  • Perfect World Co. Ltd. (PWRD): the Beijing based company makes 3D online games including multiplayer online RPGs. The company will begin beta test for new online role playing game on Dec. 18 and is attracting lots of buzz recently. The revenue for the company is also growing rapidly as the earning in March 2007 alone is almost the same as the earning for the entire 2006.
  • Shanda Interactive Entertainment Ltd. (SNDA): the Shanghai based company offers multiplayer online role playing games as well as board games. Recently the company reported 66% rise in third quarter profit due to strong revenue of $238.9 million yuan compared to $143.5 million yuan last year. The company is trading at $35.91 with P/E ratio of 14.4, relatively cheaper than its rivals.
  • Inc. (SOHU): the Beijing based company is a diversified internet company focusing on online portal, online game, e-commerce and search engine. The company is a steady growing company with revenue of $134 million US last year and could surpass that this year especially as the company is lookinf for a better than expected fourth quarter earnings. The company is currently trading at $60.7 with P/E of 89.68.