Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

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

Thematic (Sector/Industry)

<ul>
<li>700 HK: Tencent's &lt;Honor of Kings: World&gt;to Launch in 2025.(+)</li>
<li>700 HK: Tencent's &lt;Delta Force&gt; to Launch on September 26 for PC and Mobile (+)</li>
<li>700 HK/NTES US: Tencent and NetEase Announce Playtime Restrictions for Minors During Mid-Autumn and National Day Holidays (/)</li>
</ul>


700 HK: Tencent's &lt;Honor of Kings: World&gt;to Launch in 2025.(+)
700 HK: Tencent's &lt;Delta Force&gt; to Launch on September 26 for PC and Mobile (+)
700 HK/NTES US: Tencent and NetEase Announce Playtime Restrictions for Minors During Mid-Autumn and National Day Holidays (/)


[Blue Lotus Daily-TMT Update]:700 HK/NTES US/1024 HK/3690 HK/PDD US/JD US/BABA US/1810 HK/SE US

Analyst - Media&Entertainment Sector, Blue Lotus Research Institute

Stan Zhao

Analyst - Media&Entertainment Sector

<ul>
<li>Tencent's &lt;Honor of Kings&gt; has seen significant grossing growth following gameplay features' expansion and global servers' launch.</li>
<li>Additionally, &lt;Teamfight Tactics Mobile&gt; saw a surge in grossing rankings after its anniversary event and has since maintained a stable position.</li>
<li>&lt;Justice Mobile&gt; has stabilized following its anniversary update, while &lt;Naraka Mobile&gt; experienced a noticeable drop in revenue rankings. Future updates will be monitored to assess the game's performance moving forward.</li>
</ul>


Tencent's &lt;Honor of Kings&gt; has seen significant grossing growth following gameplay features' expansion and global servers' launch.
Additionally, &lt;Teamfight Tactics Mobile&gt; saw a surge in grossing rankings after its anniversary event and has since maintained a stable position.
&lt;Justice Mobile&gt; has stabilized following its anniversary update, while &lt;Naraka Mobile&gt; experienced a noticeable drop in revenue rankings. Future updates will be monitored to assess the game's performance moving forward.


Online Game Monitor: August 13 - September 8, 2024

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>NetEase's 2024 second quarter earnings report revealed considerable strategic progress, although accompanied by some operational challenges typical for a growing enterprise.</li><li>The company reported a total revenue of RMB 25.5 billion, indicating a 6% year-over-year increase, driven largely by the success in its gaming division and expanded efforts in international markets.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

NetEase's 2024 second quarter earnings report revealed considerable strategic progress, although accompanied by some operational challenges typical for a growing enterprise.The company reported a total revenue of RMB 25.5 billion, indicating a 6% year-over-year increase, driven largely by the success in its gaming division and expanded efforts in international markets.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

NetEase Inc.: An Expanding Game Portfolio with Worldwide Reach! - Major Drivers

<ul>
<li>NTES US/BABA US: NPPA Released August Domestic Game Code Approvals.(+/+)</li>
<li>700 HK: 700 HK: &lt;Honor of Kings&gt; July Grossing Up 26% MoM. (+)</li>
<li>BABA US: Alibaba backed AI-startup launches video and music generation model (+)</li>
</ul>


NTES US/BABA US: NPPA Released August Domestic Game Code Approvals.(+/+)
700 HK: 700 HK: &lt;Honor of Kings&gt; July Grossing Up 26% MoM. (+)
BABA US: Alibaba backed AI-startup launches video and music generation model (+)


[Blue Lotus Daily-TMT Update]:NTESUS/BABAUS/700HK/PDDUS/JDUS/VIPSUS/1810HK/SHEIN/WMTUS/4385JP/EBAYUS

<ul>
<li>NetEase reported C2Q24 top line, GAAP operating profit and GAAP net income in line, (5.6%) and (7.3%) vs. our estimates, and in line, (4.0%) and (5.5%) vs. consensus. </li>
<li>We believe game growth will materially accelerate in C2H24 and 2025, based on our projection for Naraka Mobile, Where Winds Meet and the two Marvel games. </li>
<li>We keep TP of US$122 unchanged and maintain BUY .</li>
</ul>


NetEase reported C2Q24 top line, GAAP operating profit and GAAP net income in line, (5.6%) and (7.3%) vs. our estimates, and in line, (4.0%) and (5.5%) vs. consensus. 
We believe game growth will materially accelerate in C2H24 and 2025, based on our projection for Naraka Mobile, Where Winds Meet and the two Marvel games. 
We keep TP of US$122 unchanged and maintain BUY .


[NetEase (NTES US, BUY, TP US$122) Review]: Growth Will Materially Accelerate in C2H24 and 2025

China

NetEase, Inc. is an Internet technology company that develops applications, services and other Internet technologies in China. The Company's core businesses consist of email service, web portal and online entertainment, including online gaming services. NetEase also offers online advertising, search, mobile applications and e-commerce.

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NetEase Inc (NTES US)

[Blue Lotus Daily-TMT Update]:700 HK/NTES US/1024 HK/3690 HK/PDD US/JD US/BABA US/1810 HK/SE US

Tencent announces new game launches and playtime restrictions for minors during holidays in collaboration with NetEase.

Blue Lotus Research Institute

Online Game Monitor: August 13 - September 8, 2024

Tencent's mobile games, like <hok> have seen growth in grossing rankings while NetEase's <naraka mobile> is facing a decline.</naraka></hok>

Blue Lotus Research Institute

NetEase Inc.: An Expanding Game Portfolio with Worldwide Reach! - Major Drivers

NetEase's 2024 second quarter earnings report revealed considerable strategic progress, although accompanied by some operational challenges...

Baptista Research

[Blue Lotus Daily-TMT Update]:NTESUS/BABAUS/700HK/PDDUS/JDUS/VIPSUS/1810HK/SHEIN/WMTUS/4385JP/EBAYUS

NPPA approves new games, Honor of Kings sees revenue increase, Alibaba-backed AI startup introduces new model for video and music generation.

Blue Lotus Research Institute

[NetEase (NTES US, BUY, TP US$122) Review]: Growth Will Materially Accelerate in C2H24 and 2025

NetEase's Q2 results meet expectations, with projected game growth in the second half of 2024 and 2025. Analysts maintain a BUY rating with a...

Blue Lotus Research Institute

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Blue Lotus Daily-TMT Update]:700 HK/NTES US/1024 HK/3690 HK/PDD US/JD US/BABA US/1810 HK/SE US

​Tencent announces new game launches and playtime restrictions for minors during holidays in collaboration with NetEase.

Blue Lotus Research Institute

Online Game Monitor: August 13 - September 8, 2024

​Tencent's mobile games, like <hok> have seen growth in grossing rankings while NetEase's <naraka mobile> is facing a decline.</naraka></hok>

Blue Lotus Research Institute

NetEase Inc.: An Expanding Game Portfolio with Worldwide Reach! - Major Drivers

NetEase's 2024 second quarter earnings report revealed considerable strategic progress, although accompanied by some operational challenges...

Baptista Research

[Blue Lotus Daily-TMT Update]:NTESUS/BABAUS/700HK/PDDUS/JDUS/VIPSUS/1810HK/SHEIN/WMTUS/4385JP/EBAYUS

​NPPA approves new games, Honor of Kings sees revenue increase, Alibaba-backed AI startup introduces new model for video and music generation.

Blue Lotus Research Institute

[NetEase (NTES US, BUY, TP US$122) Review]: Growth Will Materially Accelerate in C2H24 and 2025

​NetEase's Q2 results meet expectations, with projected game growth in the second half of 2024 and 2025. Analysts maintain a BUY rating with a...

Blue Lotus Research Institute

Tencent announces new game launches and playtime restrictions for minors during holidays in collaboration with NetEase.

Tencent's mobile games, like <hok> have seen growth in grossing rankings while NetEase's <naraka mobile> is facing a decline.</naraka></hok>

NPPA approves new games, Honor of Kings sees revenue increase, Alibaba-backed AI startup introduces new model for video and music generation.

NetEase's Q2 results meet expectations, with projected game growth in the second half of 2024 and 2025. Analysts maintain a BUY rating with a...