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

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

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

[NetEase, Inc. (NTES US, BUY, TP US$122) TP Change]: Strong Games Pipelines Offering More Potentials

NTES.US: NetEase Holds Annual Game Conference, Announced New Game Pipelines, and Our Estimations(+)

NetEase (NTES US, BUY, TP US$106) Earnings Review: Justice Mobile Is the Next Catalyst

[NetEase(NTES US, BUY, TP US$102) TP Change]: Cut TP to $102 Due to More Near-Term Downside Risks

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>NetEase’s 2Q rev. miss cons. by (3.08%) and non-GAAP net income beat cons by 50.6%.</li>
<li>We anticipate that former legacies will continue to be under pressure. However, the 3Q23 is expected to show strong performance with new titles like "Justice Mobile" and "Racing Master."</li>
<li>We have raised our annual revenue expectations for "Justice Mobile" and maintain an optimistic view of NetEase's upcoming pipeline. We increased to TP US$ 105, implying 17x PE in 2023</li>
</ul>


NetEase’s 2Q rev. miss cons. by (3.08%) and non-GAAP net income beat cons by 50.6%.
We anticipate that former legacies will continue to be under pressure. However, the 3Q23 is expected to show strong performance with new titles like "Justice Mobile" and "Racing Master."
We have raised our annual revenue expectations for "Justice Mobile" and maintain an optimistic view of NetEase's upcoming pipeline. We increased to TP US$ 105, implying 17x PE in 2023


[NetEase (NTES US, BUY, TP US$105) TP Change]: Raise TP for and Upcoming Pipeline

NetEase Inc

[NetEase (NTES US, BUY, TP US$105) TP Change]: Raise TP for and Upcoming Pipeline