Goldman Sachs reports thatonlinecasinorealmoneyfreeplay, Fast Hand's first-quarter revenue was in line with expectations, but non-IFRS net profit was 33% and 39% higher than the bank and market expectations. The bank believes that fast-hand performance reflects the company'sonlinecasinorealmoneyfreeplayFor our high-quality revenue streams (excluding streaming), advertising revenue per thousand impressions (eCPM) has improved with advertising technology upgrades and continues to deliver year-on-year growth of 20%.
The results also reflect the expansion of profitability due to changes in revenue mix and operating expense disciplines, as well as the commitment to shareholder returns. The bank believes that the market will raise its profit forecast for this year after the company's profit forecast was raised by 50% last year. The bank expects the company's net profit this year and next to be 18 billion yuan and 25 billion yuan respectively. Even though the stock has risen 30% since mid-month last year, its current share price is only trading at a forecast P/E ratio of 13 times, compared with forecasts for earnings per share growth of 75% and 37% respectively this year and next. The bank raised its fast hand target price from HK$75 to HK$80, maintained its "Buy" rating, and at the same time remained on the "Sure Buy List".
