Perfect World (PWRD, Financial) is keen on developing several titles that include Swordsman Mobile, Forever Mars and Touch in the mobile segment,, which are believed to enable the company in further diversifying its portfolio in the years to come.
During the second quarter, Perfect World released Forsaken World 2.0 for Forsaken World, Raider Unleashed for Zhu Xian, Rage of Hades for Saint Seiya Online, Covenant of the Wolf for Fantasy Zhu Xian and Desert Maze for Swordsman Online. In addition, it also released the Call of Jianghu for Legend of Martial Arts, Shaolin Kongfu for Return of the Condor Heroes and expansion pack.
Perfect World has also progressed brilliantly into its mobile game business. In June, it released the mobile game Forsaken World. In mid-July, the company launched its CrossGate mobile.
Perfect World is continuing extremely well with its overseas business by leveraging its own subsidiaries. During the quarter, it released its new title Swordsman Online in Japan, Malaysia and Singapore. By the end of the second quarter, it launched the German, French and English versions of this game in Europe and North America. And recently this game was also released in Thailand.
Perfect World signed a licensing agreement for Swordsman Online in Indonesia during the second quarter. Going forward, it’s keen on delivering superior-quality entertainment to gamers across the world.
A look at the ratios
The trailing P/E and forward P/E ratios of 8.76 and 8.34 respectively indicate the solid cost cutting efforts by the company. Also, it’s better than the industry’s average P/E of 23.00. The PEG ratio of 0.78, below 1 represent healthy company growth and comparable to the industry’s average as well. The profit margin of 19.56% is satisfactory and depicts good company profit. The revenue per share and diluted EPS of 11.72 and 2.25 respectively suggests healthy company earnings.
The quarterly revenue growth and quarterly earnings growth of 31.00% and 100.30% respectively indicate impressive growth of investor earnings. The current ratio of 1.79 is good and signifies the robustness of the company’s balance sheet. Finally, the investors are advised to invest in Perfect World looking at the robust long-term growth prospects indicated by the CAGR for the next five years per annum of 12.20%, marginally above the industry’s average of 10.08% and expect promising returns in the long run.
