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.

Equity Bottom-Up

<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

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

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>Despite a disappointing 4Q2023 earnings report, <a href="https://www.smartkarma.com/entities/netease-inc" target="_blank" data-smartkarma-citation="entities:29030:1" rel="noopener">NetEase (9999 HK)</a> remains firmly amid an earnings upgrade cycle.</li>
<li>With NetEase touching on being oversold, near-term momentum indicators are displaying bullish signals.</li>
<li>NetEase currently trades more than one standard deviation below its rolling 5-year historic average PE ratio.</li>
</ul>


Despite a disappointing 4Q2023 earnings report, NetEase (9999 HK) remains firmly amid an earnings upgrade cycle.
With NetEase touching on being oversold, near-term momentum indicators are displaying bullish signals.
NetEase currently trades more than one standard deviation below its rolling 5-year historic average PE ratio.


NetEase: Positive Technical Analysis Signals

<ul><li>The NetEase Q4 earnings revealed several strengths and weaknesses in the company.</li><li>On the positives, NetEase reported a 7% increase in total net revenue for 2023 to RMB 103.5 billion (USD 14.6 billion), driven by momentum across its businesses.</li><li>The revenue growth was attributed mainly to increased revenue contribution from the launch of new games such as Justice Mobile, and sustainably developed titles like Egg Party.</li></ul>

The NetEase Q4 earnings revealed several strengths and weaknesses in the company.On the positives, NetEase reported a 7% increase in total net revenue for 2023 to RMB 103.5 billion (USD 14.6 billion), driven by momentum across its businesses.The revenue growth was attributed mainly to increased revenue contribution from the launch of new games such as Justice Mobile, and sustainably developed titles like Egg Party.

NetEase Inc.: How The Company Has Built A Robust Gaming Ecosystem! - Major Drivers

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

<ul>
<li>NetEase reported C4Q23 top line, GAAP operating profit and GAAP net income (4.8%), (16%) and (9.0%) vs. our estimates, and (3.6%), (12%) and (6.8%) vs. consensus， mainly due to..</li>
<li>The positive, however, is the acceleration of launch of &lt;Naraka Mobile&gt; by 1-2 quarters. Our estimate of the gross billing remains the same;</li>
<li>We remain optimistic about the upcoming pipeline, and we raise our TP to US$122. Our new TP implies 15.4X PE, which is 12% above current price.</li>
</ul>


NetEase reported C4Q23 top line, GAAP operating profit and GAAP net income (4.8%), (16%) and (9.0%) vs. our estimates, and (3.6%), (12%) and (6.8%) vs. consensus， mainly due to..
The positive, however, is the acceleration of launch of &lt;Naraka Mobile&gt; by 1-2 quarters. Our estimate of the gross billing remains the same;
We remain optimistic about the upcoming pipeline, and we raise our TP to US$122. Our new TP implies 15.4X PE, which is 12% above current price.


[NetEase, Inc. (NTES US, BUY, TP US$122) TP Change]: Strong Games Pipelines Offering More Potentials

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.

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NetEase (9999 HK)

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

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

NetEase: Positive Technical Analysis Signals

In this insight, we perform a technical analysis of NetEase by looking at earnings forecast revision trends, momentum indicators, and current...

Wium Malan, CFA

NetEase Inc.: How The Company Has Built A Robust Gaming Ecosystem! - Major Drivers

The NetEase Q4 earnings revealed several strengths and weaknesses in the company. On the positives, NetEase reported a 7% increase in total net...

Baptista Research

[NetEase, Inc. (NTES US, BUY, TP US$122) TP Change]: Strong Games Pipelines Offering More Potentials

NetEase reports mixed Q4 results, but positive outlook with accelerated launch of Naraka Mobile and raised price target to US$122.

Blue Lotus Research Institute

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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

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

NetEase: Positive Technical Analysis Signals

In this insight, we perform a technical analysis of NetEase by looking at earnings forecast revision trends, momentum indicators, and current...

Wium Malan, CFA

NetEase Inc.: How The Company Has Built A Robust Gaming Ecosystem! - Major Drivers

The NetEase Q4 earnings revealed several strengths and weaknesses in the company. On the positives, NetEase reported a 7% increase in total net...

Baptista Research

[NetEase, Inc. (NTES US, BUY, TP US$122) TP Change]: Strong Games Pipelines Offering More Potentials

​NetEase reports mixed Q4 results, but positive outlook with accelerated launch of Naraka Mobile and raised price target to US$122.

Blue Lotus Research Institute

NetEase reports mixed Q4 results, but positive outlook with accelerated launch of Naraka Mobile and raised price target to US$122.