Analyst Bullish on China MVAS Provider Hurray! (HRAY)

Piper Jaffray’s Safa Rashtchy published a research note yesterday on the Chinese wireless services sector. Key extracts:

The wireless landscape has been evolving over the past year, with revenue shifts among various sectors, as well as among service providers, with TOM Online (TOMO) now emerging as the leader of the space, ahead of SINA (SINA). We expect this trend to continue in 2006, and we continue to believe that the wireless sector has recovered and is going through a healthy period of modest growth before 3G services are launched. Looking back at the performance of China MVAS players in 2005 reveals several takeaways: 1) SMS still remains a major revenue contributor; 2) KongZhong (KONG), Hurray! (HRAY) and TOM Online (TOMO) dominate WAP and are best positioned for the transition to 3G; and 3) KongZhong and TOM Online are the most diversified players which should insulate them from some of the volatility associated with the strength and weakness of specific wireless segments in any given quarter. At current valuation levels, Hurray! is our favorite pick among the China wireless players.

HRAY 1-Yr Price Performance:

Comments

[User 1:]

Hray:
Due to the weak quality of HRAY's audio webcast we were unable to produce a high quality transcript. Therefore, while we initially posted a transcript to Seeking Alpha we decided it wasn't good / useful enough for our readers.
Assuming the audio quality of HRAY's upcoming webcast is better than that of last qtr we will be delighted to publish a transcript of the Q1 call shortly after its conclusion.
Thank you.
SA Editors

2006 Apr 10 08:29 AM