Sohu.com, SOHU and Sina (Sina, Sina) are China's two influences of Internet and multimedia information services companies, but the performance of last year's performance in a large number of intervention is large. The results report released this week once again emphasized the investors: China has nothing to do with the same surface.
China's wireless service market is infinite, as a network news and content providers, Sina has just been involved in this market. It released the fourth fiscal quarterly performance report after closed on Monday.
Sohu started with an Internet portal and also stepped into the wireless service market. Sohu announced in the fourth fiscal quarterly earned 17 cents before the opening of Monday, and analyzers surveyed by Thomson First Call were expected to match. However, this website known as "Chinese Yahoo, Yhoo" has announced disappointing performance expectations, resulting in analysts that the company's first fiscal quarter per share can only reach 14-16 cents. A analyst under the survey of First Call is expected to be 18 cents. Investors have sold Sohu stocks, which plunged 9.6% to $ 15.57 in early morning.
Jason Brucechke, San Francisco Pacific, San Francisco, said, "Jason Brueschke, said," The income is expected to be disappointing. If analysts believe that Sohu's first quarter performance can match their expectations, Sohu stock may already soar 25%. "
Frustrated love is nothing new about analysts and Sohu's investors who follow Sohu status. Previously, Sohu half revenue from the advertisement and the other half from the Multimedia Information (MMS) service, and the user can send pictures, text, and audio information through this service. However, in August last year, the Chinese government launched a activity against spam and erotic information, and Sohu's MMS license was sentenced to a year. Sohu stock prices were therefore huge, ranched from $ 21.45 on August 2 to $ 14.48 on September 1. At that time, MMS service was an important source of income of Sohu, and the license was revoked undoubtedly a reasons. Sohu 2003 income has surged 180% from 2002 to $ 84.4 million. But in 2004, the income was only 28% higher than in 2003, $ 103.2 billion, far below competitor an average of 81% performance.
The government's governance rectification also includes a new provision for the entire industry, which makes China's wireless service providers have a unified charging standard, prohibiting them from being charged to the mobile phone mailbox. This provision leads to the sharp decline in the income of the entire wireless service industry.
Although approximately two-thirds of income come from wireless services, Sina's blow is not as heavy as Sohu. Sina 2003 revenue surged 194% from the previous year, reaching $ 114.2 million, 76 cents per share. Sina's latest announcement showed that the company's 2004 income increased by 75% from 2003 to $ 200 million. The fourth fiscal quarter earned 30 cents per share, and the earnings per share of the same period last year were 16 cents.
So, is the Sohu behavior should be revoked? I'm afraid not. Analysts believe that Sohu's practice is different from China's other wireless service providers, but I don't know why China Mobile Communications (China Mobile Communications) is particularly stricter sanctions. The company's website said that China Mobile Communications Corporation is "an important state-owned enterprise, direct leadership of the central government."
"In August last year, the government made a series of sanctions on the wireless service provider, but most companies were most crucified, and fines were not in the district tens of thousands of dollars." Bruce said, "But Sohu is obviously different, It is set to kill the chicken monkeys. In my opinion, they obviously want to punish Sohu, let it lose. "
Government control - or at least the government's impact - a major feature of the China Telecom industry, although many mobile phone service companies, Internet portals and other wireless services companies are active molecules in the United States, Hong Kong and the domestic stock market. Sohu and Sina, there are Tom Online (Tomo), NTES, China.com, China.com, LTON, LTON, and Kongzhong, Kongzhong, you must bring to China. Mobile Communications Group Company is respectful. The company has not only 10 wholly-owned regional branches, but also a full Note, China Mobile (Hong Kong) Co., Ltd. (China Mobile (HK), CHL, Abbreviation: China Mobile), and 21 The provincial branch of the households. From the number of users, the company is not the world's largest wireless service provider, and it is also a huge thing in the market. "China Mobile Communications Group Co., Ltd. decided to show these wireless service companies who said. The calculation, now its control is more controlled, "Deutsche Bank analyst William Bao Bean said." It has a bigger market share. "(Bowl does not hold The stock of any of the above companies, but the German Bank provides investment banking services to China Mobile and Tom Online.)
"China Mobile Communications Corporation hopes that the wireless content is healthier - wants to eliminate erotic content, and also want to help end users. Regardless of whether the user is applied to use this service. "
He said that these corrective measures and fines may end one day will receive a positive effect. But he also admitted that the new charging standard has had a short-term negative impact on the whole industry. "These technological changes have brought a lot of trouble, and many companies have decreased in this period." So he lowered his own revenue of Sohu, dropped to 17 cents per share, for Sina It is expected to be reduced by 1 cents to 32 cents. (He does not hold the stock of these two companies, and there is no investment banking between the two companies.)
However, Busk issued a research report on Tuesday, "We believe that there will be more increase in space" from now on, and raise the rating of Sohu stock to neutral. His reason is: Although it is very unfortunately revoked, standing on the side, but Sohu also avoids the sharp fluctuation of MMS revenue, and does not have to hurry to adjust the performance expectations like it.
"Sina and other providers will have to cut their respective first, second fiscal quarters and year-round performance expectations, this is very disadvantageous for stock prices." Brucell said, "Sohu's current expectations more credible, it has been I have a long section of the downhill, and now I will climb up. "
The fund of the hedge fund Investor SELECT Advisors put some funds to China. John Trammell, John Trammell, believes that the China Telecom industry has broad prospects, but the turmoil is still frequent.
"This is the most worthwhile communist country in the world," Trimore said. He does not directly hold Sohu or Sina's stock. He did not ask himself to invest in hedge funds to disclose their investment portfolio, and did not disclose managers named these hedge funds. "This is an exciting era, but people are hard to understand what happens."
Investors should keep in mind that Chinese people hang in their mouths in the mouth: "Congratulations to get rich!", Thinking is to choose Chinese dumplings or China Telecom's share to get true blessings.
