The Valuation of Soft-World International Corporation

• Main Authors: Yi-Ju Chen, 陳奕如
• Other Authors: Yao-Wen Hsu
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/80601110804691658331

碩士 === 國立臺灣大學 === 國際企業學研究所 === 101 === The subprime mortgage crisis hit U.S. in 2008, and it further spread to the whole world, lasted for several years. Asset value, international trade, and economic activities were all being impacted. Under the difficult conditions in the overall economy, global online game industry still has steady annual growth rate of more than 10%. Asia is the most active and growing market：Korea is the origin of online game, Taiwan and Hong Kong are mature market through more thirty years development and China is a Comer and has a large population. From the report of Market Intelligence & Consulting Institute (MIC), Asia-Pacific online game market has already had an $8 billion market size and an annual growth rate of 11%. The market size is estimated to reach a $13 billion market size in 2016. In Taiwan, there are nearly four million online gamers. Online game in Taiwan has NT16 billion market size growing by 4.2% growth rate in 2011. Market Intelligence & Consulting Institute (MIC) estimated that market size in Taiwan will grow by 4.8% in 2012-2014. Compared to the 20% growth rate of market size in China, the online game industry in Taiwan has been in state of maturity. Because of the rise of Social Networking Service (SNS), the market size of casual game and social game has been fast-growing. It led the gamer’s range out of the young male market spread to more wide ages and female which made the world online game market gamers grow. In the same time, rapid development of the mobile platform made the online game market to be more complicated but undoubtedly growing. From the report published by Ministry of Culture of the People’s Republic of China in 2011, the mobile game has been estimated to have 52.8% Compound Annual Growth Rate (CAGR). Soft-world International Corporation is an online game company which has the most complete chain in Taiwan and it operate the business in online game industry for a long time. In recent years, Soft-world International Corporation shows vitality by research and develops the game engines by itself, set up the “Music Production Center” in the southern Taiwan and set up the “Motion Capture Studio”. For striving to create a unique identity for the game, Soft-world International Corporation improves game development capabilities and combines it with Taiwan local cultural elements. For attracting consumers and spreading market, Soft-world International Corporation launched the “My Card” digital transaction platform to provide convenience transaction way. Face the situation with the saturated domestic market, the booming China market, the new gamers’ constitution and the rise of new game platform” Mobile game platform”, what are the prospects for Soft-world International Corporation? What is the actual equity value of Soft-world International Corporation? In this thesis, I try to understand the online game industry by surveying the competitive situation and trend of the global online game industry. By the analysis of possible future changes, I will use the Discounted Cash Flow Method to estimate the most conservative values of Soft-world International Corporation at present. In this thesis, I will analyze the stock value of Soft-world International Corporation under the following situations: Firstly, Soft-world International Corporation group maintain currently MMOPRG game-based mode of operation. Secondly, Chinesegamer International Corporation the subsidiary of Soft-world International Corporation puts its most of production capacity into developing mobile games, so revenues will be affected to overflow Soft-world International Corporation. Under the status which maintain the currently mode of operation, it has the most conservative value of NT115.56 per share; but in the situation of a little revenues overflow from Chinesegamer International Corporation has been eliminated the most conservative value of NT83.12 per share.