Check this oit from http://chinavestor.com the china stock research company online. February Newsletter.
Venturing into the internet sector, it’s important to note that Chinese internet users spent about 170 yuan ($25) a month on services in 2006, almost 8 percent higher than the amount in 2005. Beijing-based Sina Corp. (SINA) defended its title as China’s No. 1 internet portal, but its peer NetEase.com (NTES) surpassed Sohu.com (SOHU) to become the second most popular portal in China. Still Sohu issued Q4 2006 guidance above analysts’ estimates propelling the stock price 40% since then. However, we think this rally may have come to an end. To the contrary of Sohu’s run-up, NetEase has been struggling. The company has to replace its ageing WWJ online game. Since NetEase derives over 80 percent of its revenues from the online gaming sector, we don’t expect the company to gain much momentum until this critical issue is solved. Regarding Baidu.com (BIDU), the dominant Chinese search engine, we are still bullish. Please read our previous Newsletter for details on Baidu<o:p></o:p>
$36.0 (02/05/07)
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