Morgan Stanley · NYSE:MS
Morgan Stanley — Investor Presentation (September 2005)
75 slides from Morgan Stanley's investor presentation, September 2005
Slide 1: Creating Consumer Value In Digital China
Creating Consumer Value In Digital China September 2005 Richard-Weidong Ji Mary Meeker richard.ji@morganstanley.com mary.meeker@morganstanley.com All of Morgan Stanley’s technology equity research reports are available on the Internet through Client Link at https://secure.ms.com. If you wish to rece
Slide 2: Contributors
Contributors Andy.Xie@morganstanley.com Jenny.Wu@morganstanley.com Economics – China Internet/Media – China Mark.Shuper@morganstanley.com Brian.Fitzgerald@morganstanley.com Telecommunications – China Internet – US Hani.Abuali@morganstanley.com Ramji.Srinivasan@morganstanley.com Internet – US Telecom
Slide 3: Outline
Outline • Perspective – Focus on Consumer Value will Drive Shareholder Value • 10 China Internet Trends • Mysteries • Challenges • Industry Analysis – Consumer Focus and Innovation are Key Mobile Value-added Services Online Advertising Online Gaming Online Commerce • Investment Framework - Business
Slide 4: Risks
Risks In addition to the risks outlined throughout this document: • It is key to remember that investing in emerging markets (the Internet) in emerging markets (like China) is always fraught with risks and challenges, and a portfolio approach to investing is crucial 4 Please see analyst certificatio
Slide 5: Perspective
Perspective 5 Please see analyst certification and other important disclosures starting on page 73.
Slide 6: China Internet = Size
Internet – Emerging Sweet Spot of China’s Consumer Ecosystem China Internet Potential to reach more Most consumers (1.3B) + Chinese consumers than = Size other industries Fastest growing economy Fastest growing (19x GDP expansion + industry in China = Growth over past 20 years) 6 Please see analyst
Slide 7: Our Investment Thesis: Focus on Consumer Value
Our Investment Thesis- Focus on Consumer Value will Drive Shareholder Value Right Questionable? Wrong Consumers Shareholders Company Shareholders Consumers Shareholders Company Company Consumers 7 Please see analyst certification and other important disclosures starting on page 73.
Slide 8: Most Trafficked Chinese Sites in China
Most Trafficked Chinese Sites in China Traffic Rank Company Name Major Business 1 Baidu Paid search 2 Sina Portal (MVAS and online advertising) 3 NetEase Portal (online games) 4 Sohu Portal (online advertising) 5 QQ / Tencent Instant messaging 6 3721 (Yahoo!) / Alibaba Paid search 7 Allyes Online ad
Slide 9: Most Trafficked Global Sites
Most Trafficked Global Sites Traffic Rank Company Name Country 1 Yahoo! USA 2 MSN USA 3 Google USA 4 Yahoo! Japan Japan 5 Baidu China 6 Sina China 7 Passport.net USA 8 eBay USA 9 163.com (NetEase.com) China 10 Sohu China 11 Microsoft USA 12 QQ / Tencent China 13 Amazon.com USA 14 3271 (Yahoo!) / Ali
Slide 10: 10 China Internet Trends
10 China Internet Trends 10 Please see analyst certification and other important disclosures starting on page 73.
Slide 11: Trend 1: Growing Faster than Other Markets
Trend 1 Growing Faster than Other Markets…with More Potential • China leads the world in number of mobile subscribers • China ranks No. 2 in Internet users with more Internet users under the age of 30 than any other country • Growth drivers for Chinese Internet have been / are robust By the end of 2
Slide 12: Trend 2: China Internet is Mobile-centric
Trend 2 Unlike the Rest of the World, China Internet is Mobile-centric Rather Than PC-centric Mobile Users Internet Users Mobile Phone to Installed PCs Country (MM) (MM) Internet User Ratio (MM) China 363 100 3.6:1 53 US 177 211 0.8:1 207 Japan 88 78 1.1:1 55 Germany 69 51 1.4:1 39 UK 54 37 1.5:1 26
Slide 13: Trend 3: Internet Brings about Cultural Evolution
Trend 3 Internet Brings about Cultural Evolution Pre-Internet Age Post-Internet Age Status Gaping holes Filling in holes Information Regulated (Top 10 Newspapers all Portals (Sina, Sohu)- alternative state-owned) news sources Only 8 model movies during the New entertainment formats, such Entertainme
Slide 14: Trend 4: Foreign Interests Accelerating
Trend 4 Foreign Interests Accelerating Foreign Entrants Local Targets Dates Transaction Type Market Position of Target eBay EachNet 7/03 Acquisition No. 1 in online auction Yahoo! 3721.Com 11/03 Acquisition No. 2 in paid search Alibaba 8/05 Bought 40% Stake No. 1 in B2B marketplace Amazon.com Joyo 8
Slide 15: Trend 5: Hotspot for Mergers and Acquisitions
Trend 5 Hotspot for Mergers and Acquisitions Vertical integration ‘Hostile’ share purchase ‘Poison Pill’ Shanda vs. Sina Sina vs. Shanda • TOM Online bought Puccini • Sina acquired Memestar & Crillion • Sohu acquired ChinaRen, Focus.net, and 17173.com • Shanda purchased PC game/ Horizontal China Int
Slide 16: Trend 6: A League of Big Players
Trend 6 A League of Big Players Industry Companies Industry Rank Market Share Online Advertising Sina No. 1 30% Sohu No. 2 25% Total share = 55% of industry rev Online Gaming Shanda No. 1 39% NetEase No. 2 18% Total share = 58% of industry rev MVAS Sina No.1 16% Tom Online No. 2 15% Tencent No. 3 10
Slide 17: Trend 7: Leadership Positions may not be Secure
Trend 7 Leadership Positions may not Necessarily be Secure Sales ($MM) 2Q2003 2Q2004 2Q2005 MVAS Sina 14 31 23 TOM Online - 29 41 as % of Sina - 93% 180% Online Gaming Shanda 17 35 56 NetEase 4 16 40 Narrowing gaps or as % of Shanda 24% 46% 70% Change in leadership Online Advertising Sina 10 16 20 S
Slide 18: Trend 8: Purer Players Have Higher Market Share
Trend 8 Purer Players Tend to Have Higher Market Share Industry Business-line as % of Industry Companies Rank in the Industry company’s revenue Online Gaming Shanda No. 1 87% NetEase No. 2 83 Online Advertising Sohu No. 2 66 MVAS TOM Online No. 1 95 Company date, Morgan Stanley Research (Estimates a
Slide 19: Trend 9: Regional Focus Can Vary
Trend 9 Regional Focus Can Vary Distribution of Chinese Internet Users • Geographical concentration • Chinese Internet users are 2.9% concentrated in coastal areas Beijing 4.3% 1.9% (56% of total, 2004, CNNIC) 1.0 % 1.3% 3.4% • Top 4 cities contribute 50% plus 3.6% Tianjin 2.1% of advertising sales
Slide 20: Trend 10: Content Becoming King
Trend 10 Content Becoming King • Content providers gaining pricing power − TOM Online paying out 40-50% of revenue to music companies for distribution rights − KongZhong paid 5x more for wireless distribution rights for leading blockbuster movie vs. 2 years ago − Foreign game developers, such as Act
Slide 21: Mysteries
Mysteries 21 Please see analyst certification and other important disclosures starting on page 73.
Slide 22: Mystery 1: Valuation Discounts to Global Peers
Mystery 1 Chinese Internet Players at Valuation Discounts to Global Peers Top 5 Internet Companies Our diagnosis China US • Macro uncertainty – Economic Average P/E multiples 15-25x 40-50x concerns create market issues Average earnings growth 25-40% 25-30% • Policy risks - revenue sharing changes, c
Slide 23: Mystery 2: Real Revenue Higher than Headline Revenue
Mystery 2 Real Revenue Perhaps Significantly Higher than Headline Revenue Industry revenue US company revenue ($B, CY2004) ($B, CY2004) Headline figures MVAS operators 0.8 Amazon 6.9 Online Gaming 0.4 Yahoo 3.6 Online Advertising 0.2 eBay 3.3 Google 3.2 Total 1.4 After adjusting for PPP Total 6.2 17
Slide 24: Mystery 3: Much Higher Margins than Global Peers
Mystery 3 Chinese Internet Players Have Much Higher Margins than Global Peers Company Name Operating Margin Company Name Operating Margin (For CY2004) (For CY2004) China US China Finance 65% eBay 32% NetEase 50% Google 20% KongZhong 41% Yahoo! 19% Tencent 40% InterActive 17% Shanda 39% Verisign 11%
Slide 25: Mystery 4: Ecommerce Ready to Take Off in China?
Mystery 4 ecommerce Ready to Take Off in China? Pillars for ecommerce Development in China GDP per capita $1,270 for China in 2004, 3% of that for the US but expanding rapidly Payments eBay EachNet debuted PayPal in July 2005; Au Fu Tong (escrow service) in place since October Payment volume for Ali
Slide 26: Mystery 5: Why Can Click Plus Brick Outcompete?
Mystery 5 Why can ‘Click Plus Brick’ Outcompete? • Chinese Internet companies mostly have online plus offline operations • For online companies, offline presence is instrumental for: • customer acquisition - Ctrip has over 1,300 call center staff to sell air tickets and hotel room nights • product p
Slide 27: Mystery 6: SOEs - Referees and Players?
Mystery 6 SOEs - Referees and Players? • State-owned Enterprises (SOEs) typically rule-makers − China Mobile has ordered content clean-up, cancellation of inactive accounts, and billing platform migration for MVAS (since 1Q2004). • SOEs also players − MVAS already accounted for ~16% of China Mobile
Slide 28: Mystery 7: Why Foreign Players Are Challenged
Mystery 7 Why are Foreign Players Especially Challenged in China? Domestic players Foreign entrants Regulatory barriers Low High Struggles of foreign entrants Reporting structure Lean Fat (often multi-layer) • eBay EachNet experienced market Local management In charge Mostly left after acquisitions
Slide 29: Case Study: Alibaba/Taobao vs. eBay EachNet
Case Study- Battle between Alibaba / Taobao and eBay EachNet Alibaba / Taobao eBay EachNet GMV $120MM in 1Q2005; $200MM in 2Q2005 $100MM in 1Q2005; not disclosed in 2Q2005 Total no. of listings 10MM 1MM Listing fees No Yes, but reduced by 25%- 50% since May 2005 Listing standard Front page placement
Slide 30: Case Study: Alibaba/Taobao vs. eBay EachNet
Case Study- Alibaba / Taobao vs. eBay EachNet Women Men Buying Selling Listings More customer-centric, with categories like ‘Men,’ More product-centric, with categories for ‘Buying’ ‘Women’ and ‘Home’ and ‘Selling’ Web Design Graphics-rich, more appealing to online customers Text-rich, less appealin
Slide 31: Challenges
Challenges 31 Please see analyst certification and other important disclosures starting on page 73.
Slide 32: Challenge 1: Economic Hard Landing or Soft Landing?
Challenge 1 Economic Hard Landing or Soft Landing? As % of GDP China US Differential • China’s economy relies heavily on: Personal consumption 42% 70% -28% • investment, which is at historical Government consumption 12% 15% -3% high but may be affected by the Investment 44% 20% 24% burst of property
Slide 33: Challenge 2: Expect the Unexpected!
Challenge 2 Expect the Unexpected! • Regulatory / government-related uncertainties − Leaders of 3 telecom carriers shuffled among each other in late 2004 − Changes in revenue sharing by mobile carriers − Google has been suspended multiple times due to ‘improper content’ • MP3 search is among the mos
Slide 34: Challenge 3: Long-term Value vs. Short-term Profit
Challenge 3 Long-term Value vs. Short-term Profit • Short-term behaviors could lead to value destruction Case Study- The mishap of MVAS operators in 2004 Services Selected Sanction List Reasons For Sanctions SMS Most listed ISPs Inactive accounts Billing malpractice Sina Fortune-telling related SM
Slide 35: Challenge 4: Hollowing of Management
Challenge 4 Hollowing of Management • Most Chinese Internet firms have experienced high levels of management turnover Case study- Sohu’s talent exodus Name of Sohu's Positions At Sohu Positions Post-Sohu Former Executives Victor Koo President Plans to start up his own venture Sam Qian Vice President
Slide 36: Other Challenges
Other Challenges • China’s current business environment is more favorable to SOEs than start-ups, especially in areas like regulation and financing • Dearth of innovation − lots of ‘me-too’ products, services, and content • Too much capital, too few good ideas • To buy or to build? − Most Internet c
Slide 37: Industry Analysis: Consumer Focus and Innovation are Keys
Industry Analysis – Consumer Focus and Innovation are Keys 37 Please see analyst certification and other important disclosures starting on page 73.
Slide 38: How do We Rate an Industry
How do We Rate an Industry What is important… What we are looking for… • Small fish in a big pond or big • Growth really matters fish in a small pond? • How close can we get to • The closer, the better consumers? • How crowded is the space? • The less competitive, the better • Who is the boss in the
Slide 39: Not All Value Chains were Created Equal
Industry Analysis - Not All Value Chains were Created Equal Online Online advertising Advertisers Advertising Agency Online Game Online Game Online gaming Developers Operators Internet Cafes Consumers Distributors MVAS Content poviders MVAS Operators Mobile Carriers (China Mobile & China Unicom) Dis
Slide 40: Scoreboard for Chinese Internet Industries
Scoreboard for Chinese Internet Industries Online Brand Online Paid MVAS Advertising Gaming Search Notes For The Scores Industry Growth 2 2 3 3 (3: Sales CAGR for next 3 years >30%, 2: 20%< but <30%, 1: <20%) Consumer Access 1 2 3 2 (3: Good direct access; 2: Some direct access; 1: Access all throug
Slide 41: Chinese Online Gaming Industry: Growth and Scale
Chinese Online Gaming Industry- Growth and Scale are the Name of the Game Chinese Online Gaming Industry Sales • $390MM sales for 2004 and 37% CAGR for next 3 years • Large players lead the space 2000 100% Online Game Sales 1800 Growth Rate 90% Online Game Sales (US$ mn) 1600 80% 1400 70% % Growth y
Slide 42: Beauty of Online Gaming
Beauty of Online Gaming Online Gaming is: • self-enhancing with networking effect - NetEase’s most popular game has an average concurrent users of around 300,000-400,000, 5x more than US leaders • sticky - average user playing time > 3 hrs per day (IDC) • scalable - Shanda’s operating margin on aver
Slide 43: What's Unique about Chinese Online Gaming Industry
What’s Unique about Chinese Online Gaming Industry • Revenue multiplier for Chinese Online • Games of Asian culture origins Gaming sales is around 11x (IDC estimates) dominate the top 10 list • 6x for telecom industry, 3x for IT industry, and 2x for media and publishing industry Rank Name of The Onl
Slide 44: Comparing Online Gaming with Movies
Comparing Online Gaming with Movies - All Hit-driven, but with Different Life Cycles Movies MMORPGs Content Finished products once released Work-in-progress that can be upgraded periodically Star Effect Big movie stars draw crowd Online gamers can become self-made stars Life Cycle Even blockbuster m
Slide 45: Profiling Different Game Products
Profiling Different Game Products 3D MMORPG* 3D MMORPG Casual Game Mobile Game Scale Multiplayers, typically thousands to hundred thousands Single player to a few players Single player to a few players Revenue Model Subscription, hourly charge, game item sales Game item sales Subscription Playing Ti
Slide 46: Our Investment Focus in Online Gaming
Our Investment Focus in Online Gaming - Integrated Game Operators • Game content is king • Channel margin for game • Foreign game developers command distributors declined by 50% 5x-10x higher game licensing fees now than a few years ago over past 3 years (iResearch) • NetEase and Kingsoft are leader
Slide 47: MVAS: Largest Revenue Contributor for China Internet
MVAS - Largest Revenue Contributor for China Internet Chinese commercial MVAS industry sales • MVAS industry is more fragmented than • $770MM in 2004 with high-20% CAGR for next 3 years Online Gaming and Online Advertising 2500 120% MVAS Sales Growth Rate 100% 2000 MVAS Revenue Company Names ($MM, C
Slide 48: MVAS: Light at the End of the Tunnel
MVAS - Light at the End of the Tunnel New Trends • Entry barriers are rising Our investment focus • Regulation, relationship, scale, and costs Market leaders with edgy • Content becoming hot business model, edgy content, • TOM Online pays out 40%-50% of and edgy distribution revenue to leading conte
Slide 49: What Does It Take to be a Winner in a Choppy Industry?
What does It Take to be a Winner in a Choppy Industry? MVAS has more risks than other Winners’ DNA Internet sectors • Unique business model - Crillion, • Short term - migration to new now wholly owned by Sina, billing platform enjoys exclusive relationship with job centers • Medium term - Revenue sh
Slide 50: MVAS: Which Product has the Best Prospects?
MVAS - Which Product has the Best Prospects? MVAS Product Revenue Annual Sales Growth Sales CAGR Products (CY2004, $MM) (CY2005) (CY2006-CY2008) IVR/ RBT 86 68% 22% • SMS a cash cow • 2.5G robust SMS 484 23% 13% • IVR/ RBT attractive 2.5G MMS 94 53% 29% WAP 108 51% 32% Sources: Morgan Stanley Resear
Slide 51: Art of Managing MVAS Portfolio
Art of Managing MVAS Portfolio Company Names Sina Tencent Tom Online Linktone KongZhong Sohu Netease Hurray! IVR/RBT Sales ($MM) 5 6 29 3 8 1 0 3 as % of Total MVAS 4% 8% 26% 5% 16% 2% 1% 7% SMS Sales ($MM) 103 65 55 40 8 30 14 14.9 as % of Total MVAS 83% 83% 49% 80% 16% 79% 85% 35% 2.5G (MMS/WAP) S
Slide 52: Online Advertising: Race for Eyeballs and Performance
Online Advertising - Race for Eyeballs and Performance Chinese Online Advertising Industry Sales • $220MM in 2004 with mid-20% CAGR for next 3 years • A League for the Big Guys 800 160% Online Brand Adv Sales 700 140% Online Advertising Sales (US$ mn) Growth Rate 600 120% 500 100% % Growth yoy Onlin
Slide 53: Our Investment Focus: Content, Demographics and Performance
Our Investment Focus- Content, Demographics and Performance What stands out in China Winners’ attributes: • Chinese advertising market - fastest • Content growing in world and second largest in • Sina’s partnership with 1,000 plus content Asia providers; Sohu’s content alliance with • Chinese online
Slide 54: Paid Search and its Unique Story in China
Paid Search and its Unique Story in China Chinese paid search industry sales • $74MM in 2004 with 60%+ CAGR E for next 3 yrs • Top 3 players accounted for 86% of search traffic in 2004 (iResearch)- 1000 160% Baidu (33%), Yahoo/Yisou/3721 Paid Search Sales (30%), Google (22%) 900 Growth rate 140% 800
Slide 55: Online Commerce: Road to the Promised Land
Online Commerce - Road to the Promised Land Our View Features Current Leaders Instant Messaging (IM) A building block for Internet value-added service Tencent has 3 quarters of IM market share as China's Tencent, MSN largest online community P2P Online Retailing The combat between eBay EachNet and Y
Slide 56: Investment Framework: Business / Competence / Price
Investment Framework - Business / Competence / Price 56 Please see analyst certification and other important disclosures starting on page 73.
Slide 57: Our Way of Picking Stocks
Our Way of Picking Stocks • Large market Good • Robust growth Business Model • High barriers + • Management- capable, reliable & Good Our consumer-centric Core Competence Stock Picks • Innovation + • ‘Margins of safety’ • Free embedded Good Price options 57 Please see analyst certification and other
Slide 58: Case Study: Business Model Matters, Ctrip vs. 51job
Case Study- Business Model Matters Microscopic Cross-Examination Between Ctrip and 51job Ctrip 51job Business models Agency model with little inventory risks Merchant model with advertising inventory Commission-based Contract-based, entailing promotional discount for customer acquisition Scalability
Slide 59: Case Study: Competence Makes Differences, Ctrip vs. eLong
Case Study- Competence Make Differences Between Ctrip and eLong Differential Between Ctrip vs. eLong Rank In Travel Consolidation Industry No. 1 vs. No. 2 Revenue 2.6x Hotel Room Nights Sold 7x Air Tickets Sold 2x Net Profit $16MM vs. loss of -$2.6MM Revenue Per Head 1.4x Revenue Per Contracted Hote
Slide 60: Case Study: Our Price Discipline
Case Study- Our Price Discipline: Focus on Growth and Bargains Valuation Criteria Examples Discount relative to potential growth Our projected PEGs for Ctrip, NetEase, and Tencent are at around 0.5x (relative to their operating income growth) Upside from company's outexecution Ctrip and NetEase exce
Slide 61: Investment Ideas
Investment Ideas 61 Please see analyst certification and other important disclosures starting on page 73.
Slide 62: Our Top Stock Ideas in China Internet
Our Top Stock Ideas in China Internet • Ctrip (CTRP, Overweight-V) - Setting an operational standard rarely seen in China • NetEase (NTES, Overweight-V) - Best-in-class in online gaming • Tencent (0700.HK, Overweight-V) - Leader of virtual community 62 Please see analyst certification and other impo
Slide 63: Ctrip: High Flyer from the First to the Last Mile
Ctrip (Overweight-V) - High Flyer from the First to the Last Mile Investment Positives • One of fastest growing companies in China - Sales up 94% Y/Y in 2004, versus 75% for Sina, 67% for NetEase, and 28% for Sohu; widened its gap against No. 2-ranked eLong • Higher barriers to entry - 1/3 of contra
Slide 64: Ctrip: Setting an Operational Standard Rarely Seen in China
Ctrip (Overweight-V) - Setting an operational standard rarely seen in China Ctrip's Operating Efficiency Ctrip’s Cost Leadership Ctrip's total revenue (CY2004) 2.6X larger than eLong Air ticket sales 2X Hotel room sales 7X Operating revenue per head 1.4X Operating revenue per hotel 1.8X Opex Per Hea
Slide 65: NetEase: In a Class by Itself
NetEase (Overweight-V) - In a Class by Itself • NetEase generates 80%+ revenue from online game sales, which have grown by 32% per quarter over the past 8 quarters • The peak concurrent users for NetEase’s two leading Online Gaming, Fantasy Westward Journey and Westward Journey 2, climbed to 710,000
Slide 66: NetEase: Best-in-Class in Online Gaming
NetEase (Overweight-V) - Best-in-Class in Online Gaming Investment Positives • NetEase is the China Internet leader in innovation and was the first Internet company to: • Tap into MVAS, thus becoming the first profitable Internet company in China • Shift its focus away from MVAS due to regulatory un
Slide 67: NetEase: Competitive Advantages, Threats
NetEase (Overweight-V) - Competitive Advantages, Threats Our View NetEase vs. Shanda - Closing The Gap NetEase vs. Other More nimble, more creative Portals Netease Shanda NetEase vs. Domestic Deeper pipeline, deeper Online game sales Game Operators pocket as % of Shanda's in 2Q2005 70% 100% NetEase
Slide 68: Tencent: Reigning Champ of Virtual Community
Tencent (Overweight-V) - Reigning Champ of Virtual Community Virtual Items Online Advertising & Avatars MVAS Online Gaming Sources: Tencent 68 Please see analyst certification and other important disclosures starting on page 73.
Slide 69: Tencent: Monetizing Online Communication and Entertainment
Tencent (Overweight) - Monetizing Online Communication and Entertainment Investment Positives • Dominating instant messaging (IM) space with authority • 3 quarters of IM users frequented Tencent’s IM in 2004, whose gap against MSN was widened to 5x • 300MM downloads of QQ client software, 16MM voice
Slide 70: Sina: Executing, but on Increasingly Competitive Fronts
Sina (Equal-weight-V) - Executing, but on Increasingly Competitive Fronts Investment Positives % of revenue Industry Rank Online Advertising 42% No. 1 • Leading online content provider MVAS 52% No. 2 • Overall web site, homepage, news, sports, entertainment, and lifestyle Others 6% channels all top-
Slide 71: Case Study: Potential Sina / Shanda Combination
Case Study – What we Think about a Potential Sina / Shanda Combination The Bull Case The Bear Case - Sina's content leadership may fuel the growth of Shanda's home - Shanda's core competence center on online games instead entertainment strategy of MVAS or online advertising- Shanda thus needs Sina's
Slide 72: Sohu: The Purest Advertising Portal
Sohu (Equal-weight-V) - The ‘Purest’ Advertising Portal Web Property Nature Of The Property Traffic Ranks Investment Positives Sohu's Portal Web portal No. 4 ChinaRen.com Alumni network No. 12 SoGou Sponsored search No. 13 • Owns 5 of top 50 sites in China, 17173.com Online game information protal N
Slide 73: TOM Online: A Portal by Origin; A Wireless Leader by Choice
TOM Online (Equal-weight-V) - A Portal by Origin; A Wireless Leader by Choice Examples Of TOM Online's Edgy Practice Investment Positives Content Content alliance with Universal, Warner, BMG, EMI etc Acquired Indiagame, the leading mobile game operators in India Services Exclusive operator of Skype
Slide 74: 51job: A Job Still to Be Done
51job (Equal-weight-V) - A Job Still to Be Done Investment Positives 3Q2004 4Q2004 1Q2005 2Q2005 Operating margin 26% 16% 6% 10% • Scale benefits: Revenue growth 2004 (Y/Y) 1Q2005 (Q/Q) 2Q2005 (Q/Q) Career Post Weekly 65% 27% -5% • We estimate 51job’s revenue size is 5-10x larger than closest rivals
Slide 75: Disclaimer
Disclaimer – www.morganstanley.com/research Other Important Disclosures For a discussion, if applicable, of the valuation methods used to determine the price targets included in this summary and the risks related to achieving these targets, please refer to the latest relevant published research on t
Morgan Stanley — Investor Presentation (September 2005) on 6ix