Perfect World (PWRD) Continues to Impress in Execution

Submitted By Trader Mark
For a stock that used to sit in complete ambivalence, Perfect World (ttp://www.bestwaytoinvest.com/quote/PWRD">PWRD) has blossomed into a star of late. There were times I held this stock for months and it did nothing, now it seems to only go up...

The company is out with another solid earnings report and more importantly in our world of analyst expectations being the only meaningful thing; those were also bested. I see nothing to change the story. It's not even very expensive relative to the companies being bid up on a daily basis who are shrinking instead of growing; PWRD should make $2.50 with their eyes closed so being conservative its a forward PE of 16... it would not be a surprise to see them closer to $2.65. Full report here.

Perfect World Co., a Chinese developer and operator of online games, said Monday its second-quarter profit jumped 60 percent, crediting a strong performance from its recently launched game "Battle of the Immortals."
The Beijing-based company behind games like "Perfect World" and "Ether Saga Online" said it earned 262.6 million yuan ($38.4 million), or $4.94 yuan (72 cents) per American Depository share.
Revenue increased 56 percent to 521.3 million yuan ($76.3 million) from 334.4 million yuan.
The results beat Wall Street predictions. Analysts polled by Thomson Reuters expected a profit of 64 cents per share on $73.2 million in revenue.
Perfect World said that on average, about 761,000 people in China were playing its games at any one time during the quarter, up from 619,000 in the same period last year.
The number of active paying customers in China rose to about 1.9 million from 1.5 million. The average revenue per active paying customer increased 26 percent.
The company credited the increases in active players and customers mainly to the strong performance of "Battle of the Immortals" and the continued popularity of several of its existing games.
Overseas licensing revenues totaled 46.2 million yuan ($6.8 million), up from 35 million yuan in the second quarter of last year.
Perfect World said it expects its third-quarter revenue to total between 547 million yuan ($80 million) and 563 million yuan, which would represent a 43 percent to 47 percent increase over the same period in 2008.