Declared Dividend • May 30
Dividend increased to CN¥0.33 Dividend of CN¥0.33 is 43% higher than last year. Ex-date: 4th June 2026 Payment date: 4th June 2026 Dividend yield will be 2.4%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is not covered by earnings (119% earnings payout ratio) nor is it covered by cash flows (156% cash payout ratio). The dividend has increased by an average of 34% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 32% to bring the payout ratio under control. EPS is expected to grow by 161% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Announcement • May 30
Perfect World Co., Ltd. Announces Final Cash Dividend on A Shares for the Year 2025, Payable on 4 June 2026 Perfect World Co., Ltd. announced 2025 final profit distribution plan to be implemented (A shares): Cash dividend/10 shares (tax included) of CNY 3.30000000. Record date: 03 June 2026, Ex-date: 04 June 2026, Payment date: 04 June 2026. Valuation Update With 7 Day Price Move • May 08
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥17.55, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 24x in the Entertainment industry in China. Total returns to shareholders of 1.5% over the past three years. New Risk • Apr 28
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. Cash payout ratio: 109% Dividend yield: 1.3% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 109% Minor Risks Share price has been volatile over the past 3 months (9.1% average weekly change). Large one-off items impacting financial results. Reported Earnings • Apr 28
First quarter 2026 earnings released: EPS: CN¥0.05 (vs CN¥0.16 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.05 (down from CN¥0.16 in 1Q 2025). Revenue: CN¥1.17b (down 42% from 1Q 2025). Net income: CN¥102.7m (down 66% from 1Q 2025). Profit margin: 8.8% (down from 15% in 1Q 2025). Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. New Risk • Apr 16
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 8.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite being loss-making. Share price has been volatile over the past 3 months (8.1% average weekly change). Buy Or Sell Opportunity • Nov 28
Now 25% undervalued after recent price drop Over the last 90 days, the stock has fallen 15% to CN¥14.17. The fair value is estimated to be CN¥18.96, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 9.0% over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • Oct 31
Third quarter 2025 earnings released: EPS: CN¥0.082 (vs CN¥0.13 loss in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.082 (up from CN¥0.13 loss in 3Q 2024). Revenue: CN¥1.73b (up 31% from 3Q 2024). Net income: CN¥162.3m (up CN¥374.3m from 3Q 2024). Profit margin: 9.4% (up from net loss in 3Q 2024). Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Entertainment industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 119 percentage points per year, which is a significant difference in performance. Price Target Changed • Oct 21
Price target increased by 7.2% to CN¥18.87 Up from CN¥17.59, the current price target is an average from 8 analysts. New target price is 10.0% above last closing price of CN¥17.16. Stock is up 75% over the past year. The company is forecast to post earnings per share of CN¥0.41 next year compared to a net loss per share of CN¥0.68 last year. Reported Earnings • Aug 28
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: EPS: CN¥0.11 (up from CN¥0.06 loss in 2Q 2024). Revenue: CN¥1.67b (up 17% from 2Q 2024). Net income: CN¥201.0m (up CN¥348.1m from 2Q 2024). Profit margin: 12% (up from net loss in 2Q 2024). Revenue exceeded analyst estimates by 4.6%. Earnings per share (EPS) missed analyst estimates by 1.1%. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Entertainment industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 113 percentage points per year, which is a significant difference in performance. Price Target Changed • Aug 26
Price target increased by 7.6% to CN¥16.49 Up from CN¥15.33, the current price target is an average from 7 analysts. New target price is approximately in line with last closing price of CN¥16.37. Stock is up 127% over the past year. The company is forecast to post earnings per share of CN¥0.40 next year compared to a net loss per share of CN¥0.68 last year. Price Target Changed • Jul 10
Price target increased by 14% to CN¥14.48 Up from CN¥12.73, the current price target is an average from 8 analysts. New target price is approximately in line with last closing price of CN¥15.08. Stock is up 109% over the past year. The company is forecast to post earnings per share of CN¥0.35 next year compared to a net loss per share of CN¥0.68 last year. Declared Dividend • Jun 01
Dividend reduced to CN¥0.23 Dividend of CN¥0.23 is 50% lower than last year. Ex-date: 9th June 2025 Payment date: 9th June 2025 Dividend yield will be 1.7%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months. However, the dividend is covered by cash flows (52% cash payout ratio). The dividend has increased by an average of 24% per year over the past 10 years. However, payments have been volatile during that time. Announcement • May 28
Perfect World Co., Ltd. Approves Cash Dividend for 2024 Perfect World Co., Ltd. at its AGM held on May 26, 2025, approved profit distribution plan with Cash dividend/10 shares (tax included): CNY 2.30000000 for 2024. Price Target Changed • Apr 30
Price target increased by 8.6% to CN¥11.79 Up from CN¥10.86, the current price target is an average from 8 analysts. New target price is 13% below last closing price of CN¥13.59. Stock is up 36% over the past year. The company is forecast to post earnings per share of CN¥0.32 next year compared to a net loss per share of CN¥0.68 last year. Buy Or Sell Opportunity • Apr 27
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 18% to CN¥12.28. The fair value is estimated to be CN¥9.99, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Meanwhile, the company became loss making. Buy Or Sell Opportunity • Nov 27
Now 26% overvalued after recent price rise Over the last 90 days, the stock has risen 83% to CN¥13.53. The fair value is estimated to be CN¥10.70, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 10% over the last 3 years. Meanwhile, the company became loss making. Price Target Changed • Nov 03
Price target increased by 7.4% to CN¥9.67 Up from CN¥9.01, the current price target is an average from 10 analysts. New target price is approximately in line with last closing price of CN¥9.73. Stock is down 22% over the past year. The company is forecast to post earnings per share of CN¥0.13 for next year compared to CN¥0.26 last year. Reported Earnings • Oct 31
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: CN¥0.13 loss per share (down from CN¥0.12 profit in 3Q 2023). Revenue: CN¥1.31b (down 24% from 3Q 2023). Net loss: CN¥211.9m (down 190% from profit in 3Q 2023). Revenue missed analyst estimates by 9.2%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Oct 09
Now 23% undervalued Over the last 90 days, the stock has risen 26% to CN¥9.09. The fair value is estimated to be CN¥11.84, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 8.7% over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • Aug 27
Second quarter 2024 earnings: EPS misses analyst expectations Second quarter 2024 results: CN¥0.06 loss per share (down from CN¥0.071 profit in 2Q 2023). Revenue: CN¥1.43b (down 44% from 2Q 2023). Net loss: CN¥147.1m (down 206% from profit in 2Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has fallen by 22% per year whereas the company’s share price has fallen by 19% per year. Price Target Changed • Jul 10
Price target decreased by 10% to CN¥9.81 Down from CN¥10.91, the current price target is an average from 10 analysts. New target price is 40% above last closing price of CN¥7.01. Stock is down 54% over the past year. The company is forecast to post earnings per share of CN¥0.52 for next year compared to CN¥0.26 last year. Announcement • May 29
Perfect World Co., Ltd. Announces 2023 Final Profit Distribution on A Shares, Payable on 05 June 2024 Perfect World Co., Ltd. announced 2023 final profit distribution plan to be implemented (A shares): Cash dividend/10 shares (tax included) of CNY 4.60000000. Record date is 04 June 2024, Ex-date is 05 June 2024Payment date is 05 June 2024. Price Target Changed • May 03
Price target decreased by 8.9% to CN¥11.06 Down from CN¥12.14, the current price target is an average from 10 analysts. New target price is 11% above last closing price of CN¥10.00. Stock is down 53% over the past year. The company is forecast to post earnings per share of CN¥0.48 for next year compared to CN¥0.26 last year. Reported Earnings • Apr 27
First quarter 2024 earnings released: CN¥0.02 loss per share (vs CN¥0.13 profit in 1Q 2023) First quarter 2024 results: CN¥0.02 loss per share (down from CN¥0.13 profit in 1Q 2023). Revenue: CN¥1.33b (down 30% from 1Q 2023). Net loss: CN¥29.8m (down 112% from profit in 1Q 2023). Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has fallen by 17% per year whereas the company’s share price has fallen by 22% per year. Major Estimate Revision • Apr 22
Consensus EPS estimates fall by 27% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥9.21b to CN¥8.70b. EPS estimate also fell from CN¥0.681 per share to CN¥0.497 per share. Net income forecast to grow 84% next year vs 50% growth forecast for Entertainment industry in China. Consensus price target down from CN¥14.08 to CN¥12.68. Share price was steady at CN¥9.83 over the past week. Price Target Changed • Apr 20
Price target decreased by 9.9% to CN¥12.68 Down from CN¥14.08, the current price target is an average from 9 analysts. New target price is 30% above last closing price of CN¥9.76. Stock is down 53% over the past year. The company is forecast to post earnings per share of CN¥0.50 for next year compared to CN¥0.26 last year. Reported Earnings • Apr 16
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥0.26 (down from CN¥0.72 in FY 2022). Revenue: CN¥7.79b (up 1.6% from FY 2022). Net income: CN¥491.5m (down 64% from FY 2022). Profit margin: 6.3% (down from 18% in FY 2022). Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) also missed analyst estimates by 15%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has fallen by 24% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Mar 27
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥10.34, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 23x in the Entertainment industry in China. Total loss to shareholders of 42% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥6.72 per share. Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥10.53, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 16x in the Entertainment industry in China. Total loss to shareholders of 50% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥6.79 per share. New Risk • Feb 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 6.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 123% Cash payout ratio: 119% Minor Risks Share price has been volatile over the past 3 months (6.8% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (6.7% net profit margin). Board Change • Feb 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 8 experienced directors. No highly experienced directors. Non-Independent Director Xiaoyin Lu was the last director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Announcement • Jan 10
Perfect World Co., Ltd. Elects Chi Yufeng as Non-Independent Director Perfect World Co., Ltd. at its 1st Extraordinary General Meeting of 2024 on 08 January 2024, approved the election of Chi Yufeng as non-independent director. Valuation Update With 7 Day Price Move • Dec 26
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥11.20, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 17x in the Entertainment industry in China. Total loss to shareholders of 56% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥6.33 per share. Major Estimate Revision • Nov 22
Consensus EPS estimates increase by 14% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate increased from CN¥0.44 to CN¥0.499. Revenue forecast unchanged at CN¥8.04b. Net income forecast to grow 128% next year vs 71% growth forecast for Entertainment industry in China. Consensus price target of CN¥15.58 unchanged from last update. Share price was steady at CN¥13.20 over the past week. Price Target Changed • Oct 31
Price target decreased by 7.8% to CN¥16.41 Down from CN¥17.80, the current price target is an average from 12 analysts. New target price is 37% above last closing price of CN¥12.00. Stock is up 2.0% over the past year. The company is forecast to post earnings per share of CN¥0.44 for next year compared to CN¥0.72 last year. Reported Earnings • Oct 30
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: CN¥0.12 (down from CN¥0.16 in 3Q 2022). Revenue: CN¥1.74b (down 2.9% from 3Q 2022). Net income: CN¥234.8m (down 23% from 3Q 2022). Profit margin: 14% (down from 17% in 3Q 2022). Revenue missed analyst estimates by 16%. Earnings per share (EPS) also missed analyst estimates by 38%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has fallen by 23% per year whereas the company’s share price has fallen by 24% per year. Major Estimate Revision • Sep 06
Consensus EPS estimates fall by 10%, revenue upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from CN¥8.68b to CN¥8.78b. EPS estimate fell from CN¥0.779 to CN¥0.701 per share. Net income forecast to grow 150% next year vs 53% growth forecast for Entertainment industry in China. Consensus price target down from CN¥21.04 to CN¥18.80. Share price was steady at CN¥13.81 over the past week. Price Target Changed • Sep 05
Price target decreased by 7.9% to CN¥19.37 Down from CN¥21.04, the current price target is an average from 14 analysts. New target price is 40% above last closing price of CN¥13.82. Stock is down 3.2% over the past year. The company is forecast to post earnings per share of CN¥0.55 for next year compared to CN¥0.72 last year. Reported Earnings • Aug 31
Second quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2023 results: EPS: CN¥0.071 (down from CN¥0.16 in 2Q 2022). Revenue: CN¥2.56b (up 42% from 2Q 2022). Net income: CN¥138.6m (down 53% from 2Q 2022). Profit margin: 5.4% (down from 17% in 2Q 2022). Revenue exceeded analyst estimates by 21%. Earnings per share (EPS) missed analyst estimates by 59%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has fallen by 25% per year whereas the company’s share price has fallen by 28% per year. Valuation Update With 7 Day Price Move • Jun 26
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥16.87, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 28x in the Entertainment industry in China. Total loss to shareholders of 49% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥12.21 per share. Announcement • May 09
Perfect World Co., Ltd. Announces Implementation of Final Cash Dividend for 2022, Payable on 12 May 2023 Perfect World Co., Ltd. announced implementation of final cash dividend (tax included) of CNY 3.50000000 per 10 A shares for 2022. Record date is 11 May 2023 with Ex-date on 12 May 2023 and Payment date on 12 May 2023. Net cash dividend per 10 shares after tax: CNY 3.15000000 (CNY 3.50000000- CNY 0.35000000). Announcement • May 06
Perfect World Co., Ltd. Approves 2022 Profit Distribution Plan Perfect World Co., Ltd. at its Annual General Meeting of 2022 on 28 April 2023 approved 2022 profit distribution plan. The detailed profit distribution plan are as follows: Cash dividend/10 shares (tax included): CNY 3.50000000. Price Target Changed • Apr 28
Price target increased by 9.3% to CN¥20.41 Up from CN¥18.68, the current price target is an average from 12 analysts. New target price is 6.9% below last closing price of CN¥21.92. Stock is up 48% over the past year. The company is forecast to post earnings per share of CN¥0.83 for next year compared to CN¥0.72 last year. Price Target Changed • Apr 26
Price target increased by 7.5% to CN¥20.07 Up from CN¥18.68, the current price target is an average from 12 analysts. New target price is 10% below last closing price of CN¥22.41. Stock is up 62% over the past year. The company is forecast to post earnings per share of CN¥0.82 for next year compared to CN¥0.72 last year. Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥22.41, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 27x in the Entertainment industry in China. Total loss to shareholders of 20% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥12.19 per share. Price Target Changed • Apr 11
Price target increased by 10% to CN¥18.29 Up from CN¥16.58, the current price target is an average from 13 analysts. New target price is approximately in line with last closing price of CN¥18.60. Stock is up 50% over the past year. The company is forecast to post earnings per share of CN¥0.85 for next year compared to CN¥0.72 last year. Reported Earnings • Apr 08
Full year 2022 earnings released: EPS: CN¥0.72 (vs CN¥0.19 in FY 2021) Full year 2022 results: EPS: CN¥0.72 (up from CN¥0.19 in FY 2021). Revenue: CN¥7.67b (down 10.0% from FY 2021). Net income: CN¥1.38b (up 273% from FY 2021). Profit margin: 18% (up from 4.3% in FY 2021). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥16.27, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 21x in the Entertainment industry in China. Total loss to shareholders of 47% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥10.92 per share. Major Estimate Revision • Jan 20
Consensus EPS estimates fall by 18% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥8.26b to CN¥8.17b. EPS estimate also fell from CN¥0.88 per share to CN¥0.73 per share. Net income forecast to grow 83% next year vs 49% growth forecast for Entertainment industry in China. Consensus price target of CN¥16.97 unchanged from last update. Share price rose 3.9% to CN¥14.27 over the past week. Board Change • Nov 16
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 5 experienced directors. No highly experienced directors. Member of Supervisory Board Dan Zhang is the most experienced director on the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 21
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: CN¥0.16 (down from CN¥0.29 in 3Q 2021). Revenue: CN¥1.79b (down 29% from 3Q 2021). Net income: CN¥304.5m (down 44% from 3Q 2021). Profit margin: 17% (down from 21% in 3Q 2021). Revenue missed analyst estimates by 15%. Earnings per share (EPS) also missed analyst estimates by 35%. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 14
Second quarter 2022 earnings: EPS misses analyst expectations Second quarter 2022 results: EPS: CN¥0.16 (up from CN¥0.10 loss in 2Q 2021). Revenue: CN¥1.79b (down 9.1% from 2Q 2021). Net income: CN¥297.2m (up CN¥503.9m from 2Q 2021). Profit margin: 17% (up from net loss in 2Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 36%. Over the next year, revenue is forecast to grow 28%, compared to a 23% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Announcement • May 20
Perfect World Co., Ltd. Announces Implementation of Final Distribution Plan on A Share for the Year 2021, Payable on May 26, 2022 Perfect World Co., Ltd. announced 2021 final distribution plan to be implemented as cash dividend per 10 shares (tax included) on A share of CNY 12.00000000 payable on May 26, 2022. Record date is May 25, 2022. Ex-date is May 26, 2022. Announcement • May 19
Perfect World Co., Ltd. Approves Cash Dividend for the Year 2021 Perfect World Co., Ltd. approved cash dividend per 10 shares (Tax included) is CNY 12.0000000 for the year 2021, at the AGM held on May 16, 2021. Valuation Update With 7 Day Price Move • May 02
Investor sentiment improved over the past week After last week's 24% share price gain to CN¥14.77, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 15x in the Entertainment industry in China. Total loss to shareholders of 17% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥22.44 per share. Price Target Changed • Apr 29
Price target decreased to CN¥19.54 Down from CN¥21.27, the current price target is an average from 13 analysts. New target price is 32% above last closing price of CN¥14.77. Stock is down 31% over the past year. The company is forecast to post earnings per share of CN¥0.93 for next year compared to CN¥0.19 last year. Announcement • Apr 27
Perfect World Co., Ltd. Announces Final Profit Distribution Proposal for 2021 Perfect World Co., Ltd. announced on 26 April 2022 the profit distribution proposal for 2021 as final cash dividend of CNY 12.00000000 per 10 shares (tax included). Board Change • Apr 27
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 5 experienced directors. No highly experienced directors. Member of Supervisory Board Dan Zhang is the most experienced director on the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Major Estimate Revision • Apr 21
Consensus revenue estimates fall by 19% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥11.9b to CN¥9.67b. EPS estimate fell from CN¥1.11 to CN¥0.98 per share. Net income forecast to grow 413% next year vs 26% growth forecast for Entertainment industry in China. Consensus price target of CN¥21.18 unchanged from last update. Share price rose 11% to CN¥13.18 over the past week. Reported Earnings • Apr 16
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥0.19 (down from CN¥0.80 in FY 2020). Revenue: CN¥8.52b (down 17% from FY 2020). Net income: CN¥371.2m (down 76% from FY 2020). Profit margin: 4.4% (down from 15% in FY 2020). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 11%. Earnings per share (EPS) also missed analyst estimates by 30%. Over the next year, revenue is forecast to grow 39%, compared to a 25% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥13.25, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 17x in the Entertainment industry in China. Total loss to shareholders of 37% over the past three years. Major Estimate Revision • Jan 26
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate fell from CN¥0.66 to CN¥0.55 per share. Revenue forecast steady at CN¥9.54b. Net income forecast to grow 263% next year vs 34% growth forecast for Entertainment industry in China. Consensus price target down from CN¥24.23 to CN¥22.85. Share price fell 20% to CN¥13.66 over the past week. Valuation Update With 7 Day Price Move • Jan 24
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥14.63, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 22x in the Entertainment industry in China. Total loss to shareholders of 14% over the past three years. Reported Earnings • Oct 27
Third quarter 2021 earnings released: EPS CN¥0.29 (vs CN¥0.28 in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: CN¥2.53b (down 13% from 3Q 2020). Net income: CN¥542.3m (up 1.2% from 3Q 2020). Profit margin: 21% (up from 18% in 3Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Sep 06
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥15.66, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 15x in the Entertainment industry in China. Total loss to shareholders of 1.1% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥29.07 per share. Announcement • Sep 02
Perfect World Co., Ltd. (SZSE:002624) announces an Equity Buyback for CNY 500 million worth of its shares. Perfect World Co., Ltd. (SZSE:002624) announces a share repurchase program. Under the program, the company will repurchase up to CNY 500 million worth of its shares. The shares will be repurchased at a price not more than CNY 20 per share. The shares repurchased will be used for equity incentive or ESOP. The plan will be valid for 12 months. Price Target Changed • Aug 20
Price target decreased to CN¥26.07 Down from CN¥28.49, the current price target is an average from 16 analysts. New target price is 79% above last closing price of CN¥14.56. Stock is down 60% over the past year. Reported Earnings • Aug 18
Second quarter 2021 earnings released: CN¥0.10 loss per share (vs CN¥0.34 profit in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and control over costs. Second quarter 2021 results: Revenue: CN¥1.98b (down 23% from 2Q 2020). Net loss: CN¥206.6m (down 132% from profit in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Price Target Changed • Aug 10
Price target decreased to CN¥29.29 Down from CN¥31.56, the current price target is an average from 15 analysts. New target price is 98% above last closing price of CN¥14.80. Stock is down 58% over the past year. Valuation Update With 7 Day Price Move • Jul 27
Investor sentiment deteriorated over the past week After last week's 19% share price decline to CN¥15.90, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 15x in the Entertainment industry in China. Total loss to shareholders of 14% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥11.68 per share. Major Estimate Revision • Jul 20
Consensus EPS estimates fall to CN¥1.07 The consensus outlook for earnings per share (EPS) in 2021 has deteriorated. 2021 revenue forecast decreased from CN¥11.6b to CN¥11.2b. EPS estimate also fell from CN¥1.21 to CN¥1.07. Net income forecast to grow 63% next year vs 46% growth forecast for Entertainment industry in China. Consensus price target of CN¥31.56 unchanged from last update. Share price was steady at CN¥19.45 over the past week. Valuation Update With 7 Day Price Move • Jul 12
Investor sentiment deteriorated over the past week After last week's 19% share price decline to CN¥18.80, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 15x in the Entertainment industry in China. Total loss to shareholders of 3.3% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥11.84 per share. Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment improved over the past week After last week's 21% share price gain to CN¥24.40, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 16x in the Entertainment industry in China. Total returns to shareholders of 23% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥11.45 per share. Announcement • May 21
Perfect World Co., Ltd. Approves Final Cash Dividend on A Shares for the Year 2020, Payable on 26 May 2021 Perfect World Co., Ltd. announced at the AGM held on May 17, 2021 that the company approves final profit distribution proposal of CNY 1.60000000 per 10 shares (A shares) (tax included) for 2020. Record date is 25 May 2021, Ex-date is 26 May 2021 and payment date is 26 May 2021. Announcement • Apr 28
Perfect World Co., Ltd. Announces Final Profit Distribution Proposal for 2020 Perfect World Co., Ltd. announced final profit distribution proposal of CNY 1.60000000 per 10 shares (tax included) for 2020. Major Estimate Revision • Apr 20
Consensus EPS estimates fall to CN¥1.27 The consensus outlook for earnings per share (EPS) in 2021 has deteriorated. 2021 revenue forecast decreased from CN¥12.3b to CN¥11.7b. EPS estimate also fell from CN¥1.41 to CN¥1.27. Net income forecast to grow 23% next year vs 56% growth forecast for Entertainment industry in China. Consensus price target down from CN¥37.90 to CN¥36.65. Share price rose 11% to CN¥22.43 over the past week. Valuation Update With 7 Day Price Move • Mar 15
Investor sentiment deteriorated over the past week After last week's 20% share price decline to CN¥19.94, the stock trades at a trailing P/E ratio of 21.1x, down from the previous P/E ratio of 26.5x. Average P/E is 31x in the Entertainment industry in China. Total return to shareholders over the past three years was a loss of 1.1%. Is New 90 Day High Low • Mar 10
New 90-day low: CN¥22.78 The company is down 16% from its price of CN¥27.00 on 10 December 2020. The Chinese market is down 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Entertainment industry, which is down 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥196 per share. Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment deteriorated over the past week After last week's 17% share price decline to CN¥22.96, the stock is trading at a trailing P/E ratio of 24.3x, down from the previous P/E ratio of 29.4x. This compares to an average P/E of 31x in the Entertainment industry in China. Total returns to shareholders over the past three years are 14%. Is New 90 Day High Low • Feb 04
New 90-day low: CN¥23.86 The company is down 17% from its price of CN¥28.79 on 06 November 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Entertainment industry, which is down 5.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥190 per share. Major Estimate Revision • Feb 02
Analysts update estimates The 2020 consensus earning per share (EPS) estimate was lowered from CN¥1.25 to CN¥1.11. Revenue estimate was approximately flat at CN¥10.5b. Net income is expected to grow by 46% next year compared to 44% growth forecast for the Entertainment industry in China. The consensus price target of CN¥39.43 was unchanged from the last update. Share price is up 2.0% to CN¥26.71 over the past week. Announcement • Jan 31
Perfect World Co., Ltd. Announces Elections of Non-Independent Director, Independent Directors and Non-Employee Supervisors At the Extraordinary General Meeting Held on January 28, 2021 Perfect World Co., Ltd. announced election of Lu Xiaoyin as non-independent director; Sun Ziqiang and Wang Doudou as independent directors; Guan Ying and Zhang Dan as non-employee supervisors at the Extraordinary General Meeting held on January 28, 2021.