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　　 Changjiang Securities

Event description:

At 2:00 p.m. on November 8, Shunwang Technology [Weibo] A new product launch conference was held in Hangzhou and four major products were released, namely, cloud sea platform 8100, webmaster 8100, cloud sea browser and cloud game solutions.

Event comment:

Cloud games will reconstruct the company's value and lead the game industry revolution: the company's core technology team has broken many core technologies of cloud games through long-term technology research and development, which will allow users to run games directly in the cloud, eliminating the steps of users downloading and installing games, and breaking the restrictions of games on terminals and operating systems, It greatly reduces the time and hardware cost for players to run large games. At the same time, as the bottleneck of access bandwidth continues to be eliminated, the maturing of cloud games will also have a huge impact on web games and some hardware service providers. As the only cloud game platform provider that can span PC, mobile and TV terminals, it is expected to usher in unprecedented opportunities. Under the condition that the profit model of licensing, advertising, sharing and value-added services is feasible and clear, This product is expected to help the company realize value restructuring.

The cloud sea platform helps to achieve both performance and user experience: when the cloud sea platform enters the user terminal in the form of desktop, its effective advertising space and advertising value will be greatly improved, and the way to realize its traffic will be increased by further controlling users' access to applications and Internet portals. In addition, the 3D games, movies, and cloud based synchronous roaming functions embedded in Cloud Sea will create a more advanced product experience for Internet cafe users, significantly enhance the stickiness of platform users, and open up the space for diversified development of products, laying the groundwork for the future development of cloud sea users across the network.

The new webmaster and Yunhai browser will enhance the reputation of Internet cafe owners and franchisees: the webmaster 8100 will reduce the server burden, reduce user complaints and improve the management efficiency of Internet cafe owners and franchisees by implementing industry-leading intelligent flow control, virtual disk disaster recovery, game startup acceleration technology and the original Internet cafe monitoring and management platform. In addition, cloud sea browser takes streaming media cache acceleration technology as the core starting point, attracts users by realizing stable, safe and fast product features, and opens customized homepage, navigation and other functions to Internet cafe owners to provide them with profit space for flow realization.

Maintain the "recommended" rating: We are optimistic about the future performance contribution of the new webinar, Yunhai and browser, as well as the unprecedented industrial opportunities brought by cloud game technology. It is estimated that the company's EPS in 2012 and 2013 will be 0.73 yuan and 1.25 yuan respectively, and the current share price corresponds to 37 times and 21 times of PE in 2012 and 2013, maintaining the "recommended" rating.

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