External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>NetEase reported inline 2Q24 results: total revenue grew by 6% YoY to RMB25.5bn, in line with our/consensus estimate of RMB25.1/26.1bn; operating profit grew by 15% YoY to RMB7.0bn, vs our/consensus estimate of RMB6.7/7.2bn.</li><li>Looking ahead, we expect game revenue growth to bottom out and reaccelerate in 2H24E, underpinned by the resilient performance of legacy titles, incremental revenue contribution from new titles and the return of Blizzard’s game portfolio.</li><li>We maintain our FY24-26E total revenue forecast largely unchanged. We fine-tune our SOTP-derived target price to US$130.0 (previous: US$131.5). Maintain BUY.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NetEase reported inline 2Q24 results: total revenue grew by 6% YoY to RMB25.5bn, in line with our/consensus estimate of RMB25.1/26.1bn; operating profit grew by 15% YoY to RMB7.0bn, vs our/consensus estimate of RMB6.7/7.2bn.Looking ahead, we expect game revenue growth to bottom out and reaccelerate in 2H24E, underpinned by the resilient performance of legacy titles, incremental revenue contribution from new titles and the return of Blizzard’s game portfolio.We maintain our FY24-26E total revenue forecast largely unchanged. We fine-tune our SOTP-derived target price to US$130.0 (previous: US$131.5). Maintain BUY.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NetEase (NTES US) - Intact Quality Game Portfolio Despite Short-Term Growth Deceleration

Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

<ul>
<li>Whilst the Chinese online games market has struggled since 2023, <a href="https://www.smartkarma.com/entities/netease-inc" target="_blank" data-smartkarma-citation="entities:29030:1" rel="noopener">NetEase (9999 HK)</a> has continued to gain revenue market share driven by the success of its mobile titles.</li>
<li>Future revenue growth will depend on the continued success of NetEase’s legacy titles and its robust pipeline of upcoming releases, including several highly anticipated launches.</li>
<li>NetEase trades nearly 2 standard deviations below its 5-year historic average PE trading range, a level that has proved to be a very good entry point.</li>
</ul>


Whilst the Chinese online games market has struggled since 2023, NetEase (9999 HK) has continued to gain revenue market share driven by the success of its mobile titles.
Future revenue growth will depend on the continued success of NetEase’s legacy titles and its robust pipeline of upcoming releases, including several highly anticipated launches.
NetEase trades nearly 2 standard deviations below its 5-year historic average PE trading range, a level that has proved to be a very good entry point.


NetEase (9999-HK): Market Share Winner, Supported by Buybacks and Dividends

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>NetEase's first quarter earnings highlighted the company's ongoing growth, driven in large part by its game portfolio.</li><li>Net revenue for Q1 rose to RMB 26.9 billion, marking an accelerated YoY increase led by the company's diversified game offerings.</li><li>There was significant growth from established game franchises which have managed to maintain high popularity among their user bases, showcasing the sustainability of the company’s games.</li></ul>

NetEase's first quarter earnings highlighted the company's ongoing growth, driven in large part by its game portfolio.Net revenue for Q1 rose to RMB 26.9 billion, marking an accelerated YoY increase led by the company's diversified game offerings.There was significant growth from established game franchises which have managed to maintain high popularity among their user bases, showcasing the sustainability of the company’s games.

NetEase Inc.: Will The Increased Revenue From Game Innovation & Expansion Last?  - Major Drivers

<ul><li>NetEase announced 1Q24 results on 23 May: total revenue was up by 7% YoY to RMB26.9bn, in line with our/consensus estimate; non-GAAP net income grew by 12% YoY to RMB8.5bn, 2% ahead of consensus estimate thanks to the better-than-expected performance of games and music business GPM.</li><li>We are positive on its game revenue growth reacceleration in 2H24E supported by the quality game pipeline, despite that certain games adjustment and competition may cause short-term volatility.</li><li>We raise FY24-26E non-GAAP net income forecast by 2-5% to reflect the better-than-expected GPM expansion.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NetEase announced 1Q24 results on 23 May: total revenue was up by 7% YoY to RMB26.9bn, in line with our/consensus estimate; non-GAAP net income grew by 12% YoY to RMB8.5bn, 2% ahead of consensus estimate thanks to the better-than-expected performance of games and music business GPM.We are positive on its game revenue growth reacceleration in 2H24E supported by the quality game pipeline, despite that certain games adjustment and competition may cause short-term volatility.We raise FY24-26E non-GAAP net income forecast by 2-5% to reflect the better-than-expected GPM expansion.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NetEase (NTES US) - Inline 1Q24 Results; Upbeat on Game Revenue Growth Reacceleration in 2H24E

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.</li>
<li>The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.</li>
<li>In this note, we'll talk about the latest developments, possible outcomes and implications.</li>
</ul>


PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.
The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.
In this note, we'll talk about the latest developments, possible outcomes and implications.


China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

China

NetEase, Inc. operates as an leading internet technology company providing online services including content, community, communication, and commerce. The Company develops and operates online games, electronic commerce, internet media, innovative business, and other businesses. NetEase expands its businesses to Japan, North American, and other other international markets.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

NetEase (9999 HK)

NetEase (NTES US) - Intact Quality Game Portfolio Despite Short-Term Growth Deceleration

We maintain our FY24-26E total revenue forecast largely unchanged. We fine-tune our SOTP-derived target price to US$130.0 (previous: US$131.5)....

CMB International

NetEase Inc.: Will The Increased Revenue From Game Innovation & Expansion Last? - Major Drivers

NetEase's first quarter earnings highlighted the company's ongoing growth, driven in large part by its game portfolio. Net revenue for Q1 rose to...

Baptista Research

NetEase (NTES US) - Inline 1Q24 Results; Upbeat on Game Revenue Growth Reacceleration in 2H24E

NetEase announced 1Q24 results on 23 May: total revenue was up by 7% YoY to RMB26.9bn, in line with our/consensus estimate; non-GAAP net income...

CMB International

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

NetEase (NTES US) - Intact Quality Game Portfolio Despite Short-Term Growth Deceleration

We maintain our FY24-26E total revenue forecast largely unchanged. We fine-tune our SOTP-derived target price to US$130.0 (previous: US$131.5)....

CMB International

NetEase (9999-HK): Market Share Winner, Supported by Buybacks and Dividends

In this insight we analyse the Chinese online games market, NetEase’s revenue growth outlook, current valuation level, and shareholder returns.

Wium Malan, CFA

NetEase Inc.: Will The Increased Revenue From Game Innovation & Expansion Last? - Major Drivers

NetEase's first quarter earnings highlighted the company's ongoing growth, driven in large part by its game portfolio. Net revenue for Q1 rose to...

Baptista Research

NetEase (NTES US) - Inline 1Q24 Results; Upbeat on Game Revenue Growth Reacceleration in 2H24E

NetEase announced 1Q24 results on 23 May: total revenue was up by 7% YoY to RMB26.9bn, in line with our/consensus estimate; non-GAAP net income...

CMB International

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh