China/Asia TMT

Shawn Yang

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>We estimate that NetEase's 1Q23 revenue/non-GAAP net income is 1.4%/9.4% vs cons; and 2023's is 7.5%/12.3% vs cons. We suggest that &lt;Eggy Party&gt; has a lot of similarities with &lt;Roblox&gt;.</li>
<li>Four things the market may underestimate about NetEase: 1) the life cycle of &lt;Eggy Party&gt;; 2) &lt;Eggy Party&gt;'s overseas launch; 3)&lt;Justice Mobile&gt;; and 4) AIGC.</li>
<li>We raise NetEase's TP from US$ 99 to US$ 106, and this remains to be one of our top BUY ideas in China internet.</li>
</ul>


We estimate that NetEase's 1Q23 revenue/non-GAAP net income is 1.4%/9.4% vs cons; and 2023's is 7.5%/12.3% vs cons. We suggest that &lt;Eggy Party&gt; has a lot of similarities with &lt;Roblox&gt;.
Four things the market may underestimate about NetEase: 1) the life cycle of &lt;Eggy Party&gt;; 2) &lt;Eggy Party&gt;'s overseas launch; 3)&lt;Justice Mobile&gt;; and 4) AIGC.
We raise NetEase's TP from US$ 99 to US$ 106, and this remains to be one of our top BUY ideas in China internet.


[NetEase (NTES US, BUY, US$106) TP Change]: Eggy Party Could Be Compared to Roblox

High Quality Stock Setups, Weekly Stock Bull Finder

Weekly Stock Bull Finder

High Quality Stock Setups

Finding high potential stock setups on quality companies

Thematic (Sector/Industry)

<ul><li>Tech Heavyweights Shouldering the Load- Caution Flags Waving Since the end of 2022, few and fewer big cap tech names are now carrying the overall S&amp;P 500 index performance.</li><li>As of last Friday’s close, the S&amp;P 500 is up about 2% YTD. However, without the contribution of chip maker Nvidia (NVDA) it would be flat YTD.</li><li>Since the end of 2022, few and fewer big cap tech names are now carrying the overall S&amp;P 500 index performance.</li></ul>

Tech Heavyweights Shouldering the Load- Caution Flags Waving Since the end of 2022, few and fewer big cap tech names are now carrying the overall S&amp;P 500 index performance.As of last Friday’s close, the S&amp;P 500 is up about 2% YTD. However, without the contribution of chip maker Nvidia (NVDA) it would be flat YTD.Since the end of 2022, few and fewer big cap tech names are now carrying the overall S&amp;P 500 index performance.

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>Roblox Corporation is delivered a strong Q4 performance with revenues exceeding the analyst consensus estimate and narrower-than-expected losses.</li><li>With the exception of the first quarter of COVID, they added more new payers than ever before.</li><li>We give Roblox Corporation a 'Hold' rating with a revised target price.</li></ul>

Roblox Corporation is delivered a strong Q4 performance with revenues exceeding the analyst consensus estimate and narrower-than-expected losses.With the exception of the first quarter of COVID, they added more new payers than ever before.We give Roblox Corporation a 'Hold' rating with a revised target price.

Roblox Corporation: Collaboration With H&M & Other Drivers

<ul><li>This is our first report on Roblox, one of the most popular online entertainment and gaming platforms in the U.S. that is gradually spreading its wings across the world.</li><li>Their DAUs were 58.8 million in Q3 on a DAU basis, a 24% growth from the same quarter last year.</li><li>It is a fact that Roblox continues to face challenging comparisons especially with the last year and the pandemic times.</li></ul>

This is our first report on Roblox, one of the most popular online entertainment and gaming platforms in the U.S. that is gradually spreading its wings across the world.Their DAUs were 58.8 million in Q3 on a DAU basis, a 24% growth from the same quarter last year.It is a fact that Roblox continues to face challenging comparisons especially with the last year and the pandemic times.

Roblox Corporation: Initiation of Coverage – Business Strategy & Key Drivers

Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

<ul>
<li>This model looks for slowing growth, margin declines, sales and/or earnings disappointments, troubling working capital trends, poor estimate trends or lowered guidance, among other characteristics.</li>
<li>The key judgement is whether a slowdown is temporary or the beginning of a trend.  These shorts tend to have high valuations and betas.  Multiple compression accelerates the stock’s decline.</li>
<li>Today we are flagging Plug Power, Nvidia, Palantir, and Roblox</li>
</ul>


This model looks for slowing growth, margin declines, sales and/or earnings disappointments, troubling working capital trends, poor estimate trends or lowered guidance, among other characteristics.
The key judgement is whether a slowdown is temporary or the beginning of a trend.  These shorts tend to have high valuations and betas.  Multiple compression accelerates the stock’s decline.
Today we are flagging Plug Power, Nvidia, Palantir, and Roblox


Breaking Growth Short Candidates: Plug Power, Nvidia, Palantir, Roblox

United States

Roblox Corporation provides entertainment products and services. The Company designs and develops a wide range of online games such as internet three-dimensional and tutorial games for kids, teens, and adults. Roblox serves customers worldwide.

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ROBLOX (RBLX US)

[NetEase (NTES US, BUY, US$106) TP Change]: Eggy Party Could Be Compared to Roblox

Four things the market may underestimate about NetEase: 1) the life cycle of ; 2)Eggy Party 's overseas launch; 3) Justice Mobile; and 4) AIGC.

Blue Lotus Research Institute

Weekly Stock Bullfinder - Week of 3/27

Tech Heavyweights Shouldering the Load- Caution Flags Waving Since the end of 2022, few and fewer big cap tech names are now carrying the overall...

Weekly Stock Bull Finder

Roblox Corporation: Collaboration With H&M & Other Drivers

Roblox Corporation is delivered a strong Q4 performance with revenues exceeding the analyst consensus estimate and narrower-than-expected...

Baptista Research

Roblox Corporation: Initiation of Coverage – Business Strategy & Key Drivers

This is our first report on Roblox, one of the most popular online entertainment and gaming platforms in the U.S. that is gradually spreading its...

Baptista Research

Breaking Growth Short Candidates: Plug Power, Nvidia, Palantir, Roblox

Breaking Growth stocks combine declining fundamentals with a multiple compression. This week we flag: Plug Power, Nvidia, Palantir, Roblox

Eric Fernandez, CFA

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