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.

Equity Bottom-Up

<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

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

<ul>
<li>Total revenue grew by 15% YoY and operating margin improved YoY in 1Q22.</li>
<li>The authorities began to grant licenses and new games will be launched in China and overseas.</li>
<li>We set an upside of 25% and a price target at US$120. Buy.</li>
</ul>


Total revenue grew by 15% YoY and operating margin improved YoY in 1Q22.
The authorities began to grant licenses and new games will be launched in China and overseas.
We set an upside of 25% and a price target at US$120. Buy.


NetEase (9999 HK): Steady Without New Games in 1Q22 and New Games in Pipeline, Buy

<ul>
<li>NTES is exploring overseas market by starting studios and selling games.</li>
<li>We believe NTES has the experience in dealing with the license suspension for new games.</li>
<li>We believe the stock has an upside of 48% for year end 2022.</li>
</ul>


NTES is exploring overseas market by starting studios and selling games.
We believe NTES has the experience in dealing with the license suspension for new games.
We believe the stock has an upside of 48% for year end 2022.


NetEase (NTES) Pre-Earnings: Exploring Overseas Market

<ul>
<li>Game revenue recovered due to the new game, <em>“Harry Potter: Magic Awakened”</em>.</li>
<li>Surprisingly, <a href="https://www.smartkarma.com/entities/youdao-inc" target="_blank" data-smartkarma-citation="entities:28315:1" rel="noopener">Youdao, Inc. (DAO US)</a> did not shrink under the pressure of new policy. </li>
<li>We believe both revenue growth and operating margin will rise in 2022.</li>
</ul>


Game revenue recovered due to the new game, “Harry Potter: Magic Awakened”.
Surprisingly, Youdao, Inc. (DAO US) did not shrink under the pressure of new policy. 
We believe both revenue growth and operating margin will rise in 2022.


NetEase (NTES): 3Q21, Magic Awakened by Harry Potter

China

Youdao, Inc. develops and markets mobile internet applications. The Company provides language translation applications, personal cloud applications, e-commerce shopping applications, and other related products. Youdao also develops investment related applications.

Price Gauge
52-week Range	0.00 - 0.00
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Youdao, Inc. (DAO US)

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 (9999 HK): Steady Without New Games in 1Q22 and New Games in Pipeline, Buy

Total revenue grew by 15% YoY and operating margin improved YoY in 1Q22. The authorities began to grant licenses and new games will be launched in...

Ming Lu

NetEase (NTES) Pre-Earnings: Exploring Overseas Market

NTES is exploring oversea market. We believe NTES has the experience in dealing with the license suspension for new games. We believe the stock has...

Ming Lu

NetEase (NTES): 3Q21, Magic Awakened by Harry Potter

The new game, “Harry Potter: Magic Awakened”, is successful. Surprisingly, Youdao did not shrink under the new policy. We believe both revenue...

Ming Lu

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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 (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 (9999 HK): Steady Without New Games in 1Q22 and New Games in Pipeline, Buy

Total revenue grew by 15% YoY and operating margin improved YoY in 1Q22. The authorities began to grant licenses and new games will be launched in...

Ming Lu

NetEase (NTES) Pre-Earnings: Exploring Overseas Market

NTES is exploring oversea market. We believe NTES has the experience in dealing with the license suspension for new games. We believe the stock has...

Ming Lu

NetEase (NTES): 3Q21, Magic Awakened by Harry Potter

The new game, “Harry Potter: Magic Awakened”, is successful. Surprisingly, Youdao did not shrink under the new policy. We believe both revenue...

Ming Lu