(Source) Most of the online gamers would have heard of ChangYou or played games under this company before. If you do not, go dig around its North America portal (link). One of the powerhouses in China alongside Tencent Games, Netease, Shanda Games, Giant Interactive and Perfect World, ChangYou managed to kick all its IPO listed opponents aside in the US stock market, NASDAQ. It is currently number 3 in the top 10 most profitable US-listed Chinese stocks list provided in the source above. The other 2 online gaming companies in the list would be Giant Interactive and Netease.
Changyou.com Limited (ADR) (NASDAQ:CYOU) is the 3rd most profitable stock in this segment of the market. This might be something for people to look into if they are trying to work out how to invest on stocks. You may want to look at how to buy stocks by Stocktrades if you are a novice in this area. Its net profit margin was 52.84% for the last 12 months. Its operating profit margin was 60.81% for the same period.
Giant Interactive Group Inc (ADR) (NYSE:GA) is the 7th most profitable stock in this segment of the market. Its net profit margin was 46.02% for the last 12 months. Its operating profit margin was 54.45% for the same period.
NetEase.com, Inc. (ADR) (NASDAQ:NTES) is the 8th most profitable stock in this segment of the market. Its net profit margin was 44.50% for the last 12 months. Its operating profit margin was 45.63% for the same period.
Personally, I feel that ChangYou’s current status in the English market is not doing really well, with a striking lack of different genres and choices in its games stable for players to choose from. All that is set to change in 2012, with the company looking towards web games and publishing 3rd party games as well, including DaVinci Online (link).
One of the reasons why the company’s stock is so profitable, I am guessing it is down to the mega-launch its latest title, Duke of Mount Deer Online, enjoyed over the past few months. Costing over USD 80 million to develop (link), the results so far seems very positive. I am not sure if the game will hit the English market, but read my small preview here (link)!
