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In the past two years, Changyou has undoubtedly become the most watched company in the global gaming industry.

Its own stock price has been rising sharply.

Now the rough financial report has come out. In the past year, Changyou's revenue reached US$9.7 billion, and its net profit reached US$1.4 billion!

It has become the world's most valuable game company, with a market value of more than 82 billion US dollars!

However, this is not an encouraging figure in the eyes of many people.

Because the P/E ratio is too low.

Net profit is US$1.4 billion, and market value is only US$82 billion...which means that the price-to-earnings ratio is less than 60 times.

You know, the net profit of competitor EA in the past year is basically difficult to exceed 100 million US dollars, but the market value exceeds 10 billion US dollars... which means that the price-earnings ratio exceeds 100 times!

Why?

This is so unfair!

From any point of view, Changyou has more investment potential than EA.

Zhou Buqi also specifically communicated with Goldman Sachs about this, asking why their analysts' stock price report on Changyou seemed to be worse than that of EA... The explanation he got was quite reasonable.

There are three main points.

First, Changyou’s stock price is too high and its market value is too high.

Many retail investors and institutions are very cautious when investing. Because the gap between Changyou and its competitors is so big, it has already left competitors like Blizzard and EA far behind. This lead is so huge that it is beyond comprehension.

We all make games, so even if there are advantages and disadvantages, at least we should be at the same level of company.

This is the basic logic.

But the reality is that if Microsoft is not counted as a game company, the combined market value of the top ten largest game companies in the United States is less than half of Changyou!

This is a bit unrealistic!

Therefore, investors will be very cautious when buying Changyou stocks.

In addition, Blizzard has successfully redeemed itself from Vivendi, which is highly anticipated by the market; EA has carried out comprehensive reforms and business adjustments after changing its CEO, and its performance has improved significantly. Many institutions believe that there is a bargain-hunting opportunity. .

Therefore, institutions will be more enthusiastic about the stocks of Blizzard and EA, while Changyou will be slightly less interested.

Second, Changyou’s business structure is relatively complex.

There are both AAA masterpieces and stand-alone casual puzzle games. There are both computer online game masterpieces and mobile games. We even host world-class game competitions... The more complex the business structure, the more difficult it is to It's hard for people to understand.

Under a complex business structure, there is a significant decline in one data - profit margin.

Today, Changyou’s profit margin is less than 15%.

But two years ago, Changyou's business was relatively clear, and its profit margin could exceed 30%!

Total revenue has grown significantly and net profits have greatly improved, but profit margins have dropped significantly, which will cause worries in the market.

The third point is also the most important point.

Changyou is not an American company.

In recent years, under the general trend of policy loosening and capital recovery, a large number of domestic companies have come to list in the United States, creating the myth of wealth creation one after another. But in the process, one fraud scandal after another emerged.

Last year, New Oriental was shorted by Muddy Waters, causing its stock price to plummet.

It turns out that the short report was wrong.

A false alarm.

However, other Chinese concept stock companies that were shorted by U.S. capital were not so lucky. They did not have Yu Minhong's confidence in operating with integrity and strong industry connections. Many companies suffered disaster.

This affects Chiyu.

The entire concept of Chinese concept stocks has been questioned, and the price-to-earnings ratio has dropped.

In addition, the domestic stock market is rising sharply.

Welcoming the bull market.

The game industry was the first to stand up.

Today, more than a dozen domestic game companies listed in the United States have chosen to delist in the United States, then enter the domestic capital market through mergers and acquisitions, and then choose to return to China for listing. These game companies are not understood or trusted in the United States, and they give a biased and low price-to-earnings ratio, but when they return to China and come to the big A-shares... hum, these game companies are star assets and high-quality enterprises!

Will Changyou also transition under this general trend?

This will make American capital very worried.

In fact, Changyou's annual board meeting was mainly to discuss this matter. Even Lao Zhang came from China to study this matter. It is definitely not possible to follow the example of other domestic game companies and delist from the United States and then go back to A-shares for backdoor listing.

With the size of Changyou, A shares simply cannot afford it.

Zhang Chaoyang and Zhou Buqi haven't seen each other for half a year, and they don't seem to care much about this matter.

After meeting at Changyou's headquarters the next day, I was very happy and asked, "Do you know what I've been doing recently?"

Zhou Buqi glanced at him, a little strange, "What's wrong? Which beautiful girl did you meet again?"

"It has nothing to do with the girl!"

Lao Zhang waved his hand.

But that look on his face was really as exciting and fulfilling as having a new love.

Zhou Buqi asked: "What is that? Sohu's stock price has soared? Sohu's stock price has soared. Isn't that because Changyou brought it up?"

Zhang Chaoyang said with a smile: "I have accepted your suggestion and I am already doing it."

"What advice?"

"Take physics class."

"Ah?" Zhou Buqi's eyes lit up, "You took action? When? Why didn't I hear about it? For such a big thing, you have to market it! A big boss like you gave a physics class in person, How good of a hype concept is this?”

Zhang Chaoyang said: "I tested it and found that the online live broadcast model is not working well. The live broadcast industry is still not mature enough. I went to Tsinghua University to get a classroom, gave a few classes, and recorded them. It hasn't been released yet!"

"Recording and broadcasting..." Zhou Buqi nodded, "The appeal of recording and broadcasting is inevitably worse than live broadcasting, but it is still good. If it works well, it will be enough to become a great Internet concept, which can greatly To enhance the attractiveness of Sohu’s brand and stock.”

"Those are secondary. The key is..." Lao Zhang pointed to his chest, "The key is that I am happy! Really, happy! I am happier than how much money I make!"

Zhou Buqi smiled and said, "Are you fighting for your ideals?"

Zhang Chaoyang nodded, "I went to Tsinghua University to take a few classes and chatted with a few physics professors... It's true, there is really a kind of fire bursting out from the bottom of my heart. Taking classes gives me a sense of career more than managing a company."

"Boss Ma also said the same. He said he would definitely return to school to be a teacher after retirement." Zhou Buqi immediately thought of something, "By the way, when you take classes at Tsinghua University, do you use English or Chinese?"

Tsinghua University and Peking University are international-level universities. Not only do they have many foreign students and foreign teachers, but all majors are of the highest standards and must be in line with international standards.

In all world-class universities around the world, the mainstream teaching language is not the mother tongue of the country, but English.

Not only Tsinghua University and Peking University in China, but also Seoul National University in South Korea, Tokyo University in Japan, Berlin University in Germany, etc., all teach in English.

On the academic front, English is the first language.

In other words, it is impossible to reach the forefront of the world academically without knowing English.

Half of the courses in Tsinghua are taught in English, which is considered low internationally.

Physics itself is a Western concept, so it is normal to teach in English.

Zhang Chaoyang said: "Half and half, I'm not giving lectures to senior college students or graduate students. There are also some freshmen. I will also release them in the form of videos to share with netizens in the future. If they are all in English, there may be barriers."

Zhou Buqi said: "Why do you have to take classes at Tsinghua University? You can go to all major universities around the world. First, go to all the Ivy League schools in the United States for study tours. Just like Confucius back then, he traveled around the world to study, and also How great will it be to have 72 disciples? When the time comes, foreign universities will recognize your high level and may award you some honorary doctorate, just like Hu Shi did back then. How fulfilling will that be?"

"Huh?" Zhang Chaoyang looked suspicious, "Why do I feel that your tone is not right...Is there something wrong with you?"

Zhou Buqi smiled and said: "That's right, here at Ziweixing International, I plan to enter the field of online education. If you mainly teach in English, I can open a special column for you called "Super Rich Man Worth Ten Billions" "Teach you physics lessons" and help you promote it."

Zhang Chaoyang said angrily: "You want me to work for you again, right? Turn my hobby into a tool for you to make money?!"