Top Chinese Internet Stock Picks from Deutsche Bank Securities: Social Gaming Companies Dominate the List

Wall Street Transcript

67 WALL STREET, New York - October 16, 2012 - The Wall Street Transcript has just published its Internet Services Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Increased Mobile Content Traffic - Chinese Online Monetization Trends - Internet Infrastructure and Services Consolidation - Enterprise Adoption of Cloud Computing - Social Networking Economics

Companies include: Baidu, Inc. (BIDU), Sina Corp. (SINA) and many others.

In the following excerpt from the Internet Services Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Would you begin with a brief overview of your coverage of the Internet services sector, including some of the specific names you follow?

Mr. Hellawell: My team covers most of China's listed Internet names, ranging from Baidu (BIDU) in search, to Tencent (0700.HK) in social and gaming to Sina (SINA) in portal and microblogging. The space also includes several pure-play online gaming companies, e-commerce names, vertical-specific portals, social networks and news portals.

TWST: About which subsegment within the Chinese Internet services sector are you most bullish at the moment and why?

Mr. Hellawell: We like the larger, diversified platforms. Dominant names sitting at the intersection of social networking and gaming, in our mind, benefit from a demonstrable insulation from China's macro to and fro, and exposure to a still very secular growth in social networking. Social networking and gaming also seem to enjoy relatively greater business model clarity within the mobile age with monetization on smartphones having begun.

We also like the online video space. Consolidation continues in the space while ad budget is shifting dramatically to preroll video ads given their significantly higher click-through rates.

TWST: What are some of the technological advancements or new product or service offerings that have either recently been launched by companies in your group or are currently in development that you believe will have the greatest impact in the market over the next 12 or so months?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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