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

Equity Bottom-Up

<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

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 Feb batch. The number of games approved remained at a higher level than 2023.</li>
<li>The pace of China game approval appears to be accelerating, to the same level as pre-tightening.</li>
<li>Netease gets one game approved but we don't see that the acceleration of game approval benefits big names proportionally.</li>
</ul>


China announced game approval for the Feb batch. The number of games approved remained at a higher level than 2023.
The pace of China game approval appears to be accelerating, to the same level as pre-tightening.
Netease gets one game approved but we don't see that the acceleration of game approval benefits big names proportionally.


Tencent/Netease: Approval Rotation to Netease in Feb

<ul>
<li>We expect NetEase to report C4Q23 revenue, GAAP op. profit and GAAP net income 4.9%, 5.7% and 8.5% vs. consensus.</li>
<li>The robust topline growth was mainly contributed by revenue recognition of &lt;<em>Justice Mobile</em>&gt; in the peak summer season. </li>
<li>The grossing of legacy titles like &lt;FWWJ&gt; is also growing steadily due to the low-price strategy. We raise our TP to US$118 to reflect the rich and diversified pipeline...</li>
</ul>


We expect NetEase to report C4Q23 revenue, GAAP op. profit and GAAP net income 4.9%, 5.7% and 8.5% vs. consensus.
The robust topline growth was mainly contributed by revenue recognition of &lt;Justice Mobile&gt; in the peak summer season. 
The grossing of legacy titles like &lt;FWWJ&gt; is also growing steadily due to the low-price strategy. We raise our TP to US$118 to reflect the rich and diversified pipeline...


[NetEase, Inc. (NTES US, BUY, TP US$118) TP Change]: Strong In-House Game Performance Drives Margins

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).</li>
<li>The indicative weights for the December 2024 index rebal event will be announced later this week on Friday 22nd November 2024.</li>
<li>In this insight, we take a look at our updated flow estimates for December 2024. Separately, we have also presented our latest March 2025 index review predictions.</li>
</ul>


The Hang Seng Internet &amp; IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
The indicative weights for the December 2024 index rebal event will be announced later this week on Friday 22nd November 2024.
In this insight, we take a look at our updated flow estimates for December 2024. Separately, we have also presented our latest March 2025 index review predictions.


Quiddity Leaderboard HSIII: ~US$160mn One-Way Flows in Dec 24; 3 ADDs/DELs in Mar 25 Likely

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, 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

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. (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

Tencent/Netease: Approval Rotation to Netease in Feb

China's game approval process is picking up pace, with more games approved in February compared to monthly average last year, we also observed...

Ke Yan, CFA, FRM

[NetEase, Inc. (NTES US, BUY, TP US$118) TP Change]: Strong In-House Game Performance Drives Margins

NetEase's strong revenue growth in C4Q23 driven by <em>Justice Mobile</em> and low-price strategy for legacy titles, leading to increased target...

Blue Lotus Research Institute

Quiddity Leaderboard HSIII: ~US$160mn One-Way Flows in Dec 24; 3 ADDs/DELs in Mar 25 Likely

Easou Technology Holdings (2550 HK) has dropped 80%+ in the last few trading days and is on the verge of missing out on HSIII addition in March 2025.

Janaghan Jeyakumar, CFA

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

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[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

Tencent/Netease: Approval Rotation to Netease in Feb

​China's game approval process is picking up pace, with more games approved in February compared to monthly average last year, we also observed...

Ke Yan, CFA, FRM

[NetEase, Inc. (NTES US, BUY, TP US$118) TP Change]: Strong In-House Game Performance Drives Margins

​NetEase's strong revenue growth in C4Q23 driven by <em>Justice Mobile</em> and low-price strategy for legacy titles, leading to increased target...

Blue Lotus Research Institute

Quiddity Leaderboard HSIII: ~US$160mn One-Way Flows in Dec 24; 3 ADDs/DELs in Mar 25 Likely

Easou Technology Holdings (2550 HK) has dropped 80%+ in the last few trading days and is on the verge of missing out on HSIII addition in March 2025.

Janaghan Jeyakumar, CFA

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

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

China's game approval process is picking up pace, with more games approved in February compared to monthly average last year, we also observed...

NetEase's strong revenue growth in C4Q23 driven by <em>Justice Mobile</em> and low-price strategy for legacy titles, leading to increased target...