Perfect World engaged in Film and TV series creation as well as Gaming development in
China, together with strong game development and film production capabilities.
Assuming a target P/E of 23x in 2019, we derived a TP of $34.25, 9.1% lower than
previous TP. Due to the recent slump in stock price, we update to a “Buy” rating, with a
potential upside of 34.5%. (Closing price at 18 June 2019)