Chinese online game developer
Giant Interactive Group Inc.
) announced that Mr. Yuzhu Shi, the chief executive officer (CEO)
of the company, will quit effective from Apr 19, 2013. The board
will name a new CEO on the same day. However, Shi will continue
to serve as the Chairman of the board of directors of the
The company reported its fourth quarter earnings in late
February. Giant's adjusted earnings increased 34.9% year over
year in the fourth quarter of fiscal 2012 and 20% in fiscal 2012.
Giant's fourth quarter 2012 revenues were up 15.5%, while its
fiscal 2012 revenues grew 20.1%. The company's strong performance
was attributable to the continued growth of Giant's flagship game
ZT Online 2 and contribution from its newly launched micro-client
version. The company was able to control spending and deliver
strong margins apart from top and bottom-line growth.
Giant expects to provide new content for ZT Online 2 in 2013
and to diversify its massively multiplayer online (MMO) game
portfolio. The company also plans to launch its self-developed 3D
MMO flagship game called World of Xianxia, which has the
potential to deliver profits in 2013.
Giant is also set to launch two online games in the first half
of 2013, which are expected to become major growth drivers for
2013. The company is also focusing on developing mobile games as
a part of its growth strategy for 2013.
Giant Interactive focuses on massively multiplayer online role
playing games. Currently, Giant operates multiple games,
including the ZT Online 1 Series, ZT Online 2, Giant Online, XT
Online, The Golden Land, Elsword, and Allods Online. The company
holds a Zacks Rank #2 (Buy).
Other stocks in the industry that are performing well and are
worth considering include
Angie's List Inc
China Distance Education Holding
). While Shutterfly holds a Zacks Rank #1 (Strong Buy), Angie's
and China Distance carries a Zacks Rank #2 (Buy).
ANGIES LIST INC (ANGI): Free Stock Analysis
CHINA DISTANCE (DL): Free Stock Analysis
GIANT INTERACTV (GA): Free Stock Analysis
SHUTTERFLY INC (SFLY): Free Stock Analysis
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