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

Thematic (Sector/Industry)

<ul>
<li>With consumption in the doldrums, one would expect none growing at double digits. This is actually not the case; </li>
<li>Further, how many Chinese Growth Equity names are accelerating in growth in the second half? Quite a lot;</li>
<li>We reiterate our view that Chinese Internet names are took-all winners with strong pricing power, which are showing when they need to. The weak market sentiment is self-fulfilling.</li>
</ul>


With consumption in the doldrums, one would expect none growing at double digits. This is actually not the case; 
Further, how many Chinese Growth Equity names are accelerating in growth in the second half? Quite a lot;
We reiterate our view that Chinese Internet names are took-all winners with strong pricing power, which are showing when they need to. The weak market sentiment is self-fulfilling.


How Many Chinese Growth Equity Names Are Growing at Double Digits?

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, Inc. delivered a positive result and managed an all-around beat last quarter.</li><li>NetEase's classic legacy titles and newly launched games played a pivotal role in expanding its global footprint.</li><li>Looking ahead, NetEase anticipates the launch of Where Winds Meet, a highly anticipated AAA martial arts-themed action-adventure game.</li></ul>

NetEase, Inc. delivered a positive result and managed an all-around beat last quarter.NetEase's classic legacy titles and newly launched games played a pivotal role in expanding its global footprint.Looking ahead, NetEase anticipates the launch of Where Winds Meet, a highly anticipated AAA martial arts-themed action-adventure game.

NetEase Inc.: Inside the Strategies Fueling Their Gaming Industry Takeover! - Major Drivers

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

<ul>
<li>China announced game approval for the December batch. The number of games approved has increased compared to recent months.</li>
<li>The pace of China game approval appears to be accelerating, to the same level as pre-tightening.</li>
<li>Netease scored two approvals while Tencent scored one. Netease finished the year with the most games approved.</li>
</ul>


China announced game approval for the December batch. The number of games approved has increased compared to recent months.
The pace of China game approval appears to be accelerating, to the same level as pre-tightening.
Netease scored two approvals while Tencent scored one. Netease finished the year with the most games approved.


Tencent/Netease: Netease Tops '23 League Table with Most Games Approved

<ul>
<li>NetEase reported revenue/non-GAAP operating profit/GAAP net income inline/5.24%/16.2% vs. our estimation.</li>
<li>The bottom-line beats were primarily attributed to the operational efficiency achieved through the usage of AIGC tools, and reduced S&amp;M expenses resulting from organic traffic generated by high-quality game content.</li>
<li>We maintain our BUY rating and raised TP to $138 for future game releases, implying 19x PE, and it is currently trading at 17x PE in 2024</li>
</ul>


NetEase reported revenue/non-GAAP operating profit/GAAP net income inline/5.24%/16.2% vs. our estimation.
The bottom-line beats were primarily attributed to the operational efficiency achieved through the usage of AIGC tools, and reduced S&amp;M expenses resulting from organic traffic generated by high-quality game content.
We maintain our BUY rating and raised TP to $138 for future game releases, implying 19x PE, and it is currently trading at 17x PE in 2024


[NetEase, Inc.(NTES US,BUY,TP US$138)TP Change]: Raise TP for Upcoming and Highly Anticipated Titles

<ul>
<li>700 HK/BABA US:Taobao Deals App Now Supports WeChat Pay for All Users. (+)</li>
<li>700 HK: &lt;Arena Breakout: Infinite&gt; Developing AI Technology: Voice-Command Teammates (+)</li>
<li>NTES US: &lt;Where Winds Meet&gt; Final Pre-Launch Test Scheduled for August 28th (+)</li>
</ul>


700 HK/BABA US:Taobao Deals App Now Supports WeChat Pay for All Users. (+)
700 HK: &lt;Arena Breakout: Infinite&gt; Developing AI Technology: Voice-Command Teammates (+)
NTES US: &lt;Where Winds Meet&gt; Final Pre-Launch Test Scheduled for August 28th (+)


[Blue Lotus Daily-TMT Update]:700 HK/BABA US/NTES US/JD US/2618 HK/WMT US/BABAUS/AMZNUS/PDDUS/3690HK

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)

How Many Chinese Growth Equity Names Are Growing at Double Digits?

More Chinese growth equity names growing at double digit than single and more are accelerating in growth in C2H24. Pessimism can turn into self...

Blue Lotus Research Institute

NetEase Inc.: Inside the Strategies Fueling Their Gaming Industry Takeover! - Major Drivers

NetEase, Inc. delivered a positive result and managed an all-around beat last quarter. NetEase's classic legacy titles and newly launched games...

Baptista Research

Tencent/Netease: Netease Tops '23 League Table with Most Games Approved

China's game approval process is picking up speed, with more games approved in December. Netease emerged as the leader in game approvals for the...

Ke Yan, CFA, FRM

[NetEase, Inc.(NTES US,BUY,TP US$138)TP Change]: Raise TP for Upcoming and Highly Anticipated Titles

NetEase beats revenue and profit estimates, thanks to operational efficiency and reduced expenses. BUY rating maintained with raised target price...

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:700 HK/BABA US/NTES US/JD US/2618 HK/WMT US/BABAUS/AMZNUS/PDDUS/3690HK

Taobao Deals app now accepts WeChat Pay, AI technology in development for <arena infinite breakout:="">, final pre-launch test for <where winds...

Blue Lotus Research Institute

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

How Many Chinese Growth Equity Names Are Growing at Double Digits?

More Chinese growth equity names growing at double digit than single and more are accelerating in growth in C2H24. Pessimism can turn into self...

Blue Lotus Research Institute

NetEase Inc.: Inside the Strategies Fueling Their Gaming Industry Takeover! - Major Drivers

NetEase, Inc. delivered a positive result and managed an all-around beat last quarter. NetEase's classic legacy titles and newly launched games...

Baptista Research

Tencent/Netease: Netease Tops '23 League Table with Most Games Approved

​China's game approval process is picking up speed, with more games approved in December. Netease emerged as the leader in game approvals for the...

Ke Yan, CFA, FRM

[NetEase, Inc.(NTES US,BUY,TP US$138)TP Change]: Raise TP for Upcoming and Highly Anticipated Titles

​NetEase beats revenue and profit estimates, thanks to operational efficiency and reduced expenses. BUY rating maintained with raised target price...

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:700 HK/BABA US/NTES US/JD US/2618 HK/WMT US/BABAUS/AMZNUS/PDDUS/3690HK

​Taobao Deals app now accepts WeChat Pay, AI technology in development for <arena infinite breakout:="">, final pre-launch test for <where winds...

Blue Lotus Research Institute

China's game approval process is picking up speed, with more games approved in December. Netease emerged as the leader in game approvals for the...

NetEase beats revenue and profit estimates, thanks to operational efficiency and reduced expenses. BUY rating maintained with raised target price...

Taobao Deals app now accepts WeChat Pay, AI technology in development for <arena infinite breakout:="">, final pre-launch test for <where winds...