JL Warren Capital

JL Warren Capital LLC is a leading independent equity research firm focused on Chinese companies and listed multinationals in China. We employ a bottom-up research approach that takes great care to avoid the acquisition of material non-public information. Through investigative due diligence including channel surveys and interviews, our research helps clients to pinpoint the dislocations in the market.

Investment Advisors

China Online Games: Tencent and NetEase Increasingly Dominant.

Netease Q3 Update: Awaiting New Blockbuster Games

China to Tighten the Regulations on Online Airline Ticket Sale

NetEase: A Closer Look at the Game Pipeline.

Investment Advisors, JL Warren Capital

Junheng Li

Equity Bottom-Up

<p>In both December and January, we are seeing <a href="https://www.smartkarma.com/entities/17203" target="_blank" data-smartkarma-citation="entities:17203:1">NetEase Inc (ADR) (NTES US)</a>' promising launches of mobile games, including Ever Lasting City of 7 Days (role play RPG) and Decisive Battle in Heinankyo (Multiple Online Battle Arena).  We estimate that both Ever Last City and Battle of Heinankyo will generate ~400-500 mm RMB in cash revenue per month.  The staying power of legacy titles such as FWJ is also impressive, generating ~800-900 mm RMB per month in cash revenue after 3 years after the initial launch. </p>

In both December and January, we are seeing NetEase Inc (ADR) (NTES US)' promising launches of mobile games, including Ever Lasting City of 7 Days (role play RPG) and Decisive Battle in Heinankyo (Multiple Online Battle Arena).  We estimate that both Ever Last City and Battle of Heinankyo will generate ~400-500 mm RMB in cash revenue per month.  The staying power of legacy titles such as FWJ is also impressive, generating ~800-900 mm RMB per month in cash revenue after 3 years after the initial launch. 

NetEase: Promising Q1 Mobile Game Pipeline,Yet Uncertain Monetization Prospect for MMOFPS Games