Zhang Chaoyang: Sohu Will Become an Overlord of China's Internet

If two months ago to buy Sohu shares, then congratulations, your stock price has doubled.

"Wall Street has now began to understand Sohu." Zhang Chaoyang told reporters. "Before, in the calculation of PE, Sohu and Sina were always together, and the price-earnings ratio slightly lower today, they began searching, this algorithm is correct.

In two months ago for a fairly long period of time, about 1 years, Sohu stock has been hovering in the 25 US dollars from top to bottom. Now, Sohu's shares up to 59.49 US dollars.

The high price is not unreasonable, and its third-quarter results on substantial growth.

October 30, Sohu releases 2007 third quarter results, total revenue reached a record high of 51.5 million US dollars, up 46 percent, of which, brand advertising revenues reached 29.8 million US dollars, up 42% ; online gaming income reached 12.7 million US dollars, up 473 percent.

Sohu released from the third quarter results is not difficult to see, Sohu substantial growth performance of the game and its sharp increase in revenue.

"" Qishi "to" Daojian "Sohu persist all the way down, now finally begun in the" Tianlongbabu "broke out." Turning now the sudden outbreak of the game revenue, Zhang Chaoyang said.

Sohu season strong revenue and profit growth exceeded Goldman Sachs, Credit Suisse, RBC and other world-renowned investment bank and analyst expectations. After the earnings release, Sohu's stock price in after-hours trading as high as 11.13 percent, up to 59.49 US dollars. On that day, Sohu transactions in excess of three months average four times.

Wall Street and the entire investment community on the concept of continuing good games, most recently in the Internet industry embodies obvious. First five listed event setback, the concept of the game by the end of the Kingsoft investors recognized the successful listing, followed by the start selling health products Shi Yuzhu, this will be with a "Zhengtu" Login Nasdaq; Then, pressing against the labeling of NetDragon online games, but also has come to the door of the Nasdaq.

"Wall Street will think, in brand advertising on the basis of the rise of online games provide a stable revenue model, the revenue model and with the sustained growth of China's demand for the entertainment, markets are huge, unlimited potential." Said Zhang Chaoyang .

However, he explained, "Even in the price-earnings ratio to be, network gaming P / E is only about half of brand advertising, which only 18 or so, the latter as high as 30 and above."

Zhang Chaoyang said, because China's rapid economic growth and line advertising to the ongoing shift online advertising, especially in 2008 Beijing Olympic Games is approaching, resources and content of Sohu has obvious advantages in brand advertising business growth more obviously, this trend will continue in the future.

"Olympic sponsors in Sohu invested by the advertising, in 2007 than in 2006 increased by 70%." Zhang Chaoyang said, "Who says the 2008 Olympic Games Internet sponsor of no effect? Now Wall Street are beginning to understand the concept of Sohu means that the Olympic Games nothing. "

"Online games like movies, one after another, brand advertising like mountaineering, stable and progressive step by step." Zhang Chaoyang said.

"2007 third quarter, but over a long period of time Sohu outbreak of years, Sohu adhere to the" simmered", started with the marathon competitors, in fact, we have already entered a stage beyond competitors sprint to the trend of development, Sohu become overlord of the Chinese Internet is only a matter of time. "Zhang Chaoyang said.

Source: 中国经济时报 Zhao Ming Nov. 1, 2007