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

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China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>We estimate that NetEase’s 4Q22 revenue/non-GAAP net income will be in line/12% vs cons. Our 2023’s revenue/non-GAAP net income are in line/12% vs cons.</li>
<li>In 4Q22, several of NetEase’s mid-tier games saw declines in ranking.  We expect that NetEase will have a period of single digit growth in revenue.</li>
<li>We still rate NetEase BUY and raise TP to US$ 87. But NetEase is not our top pick within China internet space.</li>
</ul>


We estimate that NetEase’s 4Q22 revenue/non-GAAP net income will be in line/12% vs cons. Our 2023’s revenue/non-GAAP net income are in line/12% vs cons.
In 4Q22, several of NetEase’s mid-tier games saw declines in ranking.  We expect that NetEase will have a period of single digit growth in revenue.
We still rate NetEase BUY and raise TP to US$ 87. But NetEase is not our top pick within China internet space.


NetEase(NTES.US) 4Q22 Preview: Enter a Period of Lukewarm Performance