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

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

Blue Lotus Entertainment Sector Update: Tencent, NetEase and Kingsoft Have Strong Pipeline

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

[NetEase (NTES US) Earnings Review]: Eggy Party and Justice Mobile Are Two Catalysts

[NetEase (NTES US) Company Update]: Eggy Party Could Have Long Life Cycle

Gravity Works As WeWork Doesn't; Now Plan B

Bifurcated Chinese Express Market Developing

China/Asia TMT

Shawn Yang

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

NetEase Inc

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