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Giant Interactive(GA) is a China-based online game developer and operator. The company focuses on massively multiplayer online (MMO) games that are played through networked game servers, in which a number of players are able to connect and interact simultaneously. The stock gained 11.1% during the past one month.
Of the 16 analysts covering the stock, 44% recommend a buy while 44% suggest a hold. Analysts polled by
Bloomberg expect the stock to gain an average 5.1% to $8.2 in the upcoming 12 months.
For 2010 fourth quarter, the company's net profit surged 17% to $35 million on improved revenue. Excluding stock-based compensation, earnings per share increased 18.4% to 16 cents. Net revenue multiplied to $55.8 million, mainly generated from its ZT online series gaming. Meanwhile, during the quarter, active subscriptions for online games were up 49% to 1.7 million, compared to the year earlier. The company recently declared a cash dividend of 18 cents per share on its outstanding shares.
For 2011 first quarter, the company expects sequential growth in its top-line. A strategy to expand the online games market coupled with effective cost structures will generate attractive results in the year to come. In addition, in the second quarter of 2011, the company plans to conduct additional testing for Dragon Soul, a game launched in 2010 fourth quarter. This game would extend beyond the home market.