NEW YORK (TheStreet) -- Perfect World (PWRD) soared to a one-year high of $23.20 as of 2:21 p.m. EST on Friday after the China-based online game company, which focuses on massively multiplayer online role-playing games (MMORPGs), teamed with Chinese telecommunications giant Huawei to form a joint venture into the online gaming market.
Perfect World will design customized games for optimal performance on Huawei consoles, which should enhance players' gaming experiences, according to the agreement.
Huawei, which is nearly 30 years old, is the world's second-largest telecommunications equipment supplier and third-largest smartphone manufacturer.
TheStreet Ratings team rates PERFECT WORLD CO LTD as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate PERFECT WORLD CO LTD (PWRD) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and feeble growth in the company's earnings per share."