Giant Interactive Group Inc (ADR) (NYSE:GA) Hopes to Sustain Growth


Dallas, Texas 10/14/2013 (Financialstrend) – Giant Interactive Group Inc (ADR) (NYSE:GA) the leading online games developer from China has managed to garner a market cap of $2.2 billion. As of close of business on October 11, the shares of the stock were trading at $9.28 per share. This indicates a 0.54% increase in its market value from its previous day close. These valuations reflect a close to 97% appreciation from its 52 week low pricing of $4.7 per share.  In the past month the stock has rallied by more than 9.8% taking it within striking distance to its 52 week low pricing. It is just 2.3% down from its 52 week high valuation.

Strong 2Q results

In its most recently ended quarter of 2Q for which results have been announced, Giant Interactive had recorded a 14% increase on its quarter on quarter earnings from share ratio. Its ROI over a trailing 12 month period is up 36.7% which compares positively against the gaming industry baseline. Over the past 12 months, shareholders were paid a dividend of $0.46 per share. This translates to an annual dividend yield of 4.96%. It had recorded a big jump in revenue in 2Q which came in at RMB 588 million and over all represents steady growth on a quarter on quarter compare over the past three years.

Weak 3Q result forecast

3Q results are expected to be declared in the first week of November for quarter which ended on September 30. Company executives have forecasted a flat to a very moderate uptake in revenue for 3Q. The street expectations on the contrary are more positive with analysts expecting the target price of the stock to hover around the $9.15 per share.

Investors of GA would be hoping that the 3Q results will help sustain the steady growth in the market value of the stock.  Over the previous 12 months, the stock has gained 89% in market value.