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, Inc., a key player in the global gaming industry, recently showcased its third-quarter earnings for 2025, highlighting both its strategic advancements and challenges.</li><li>Throughout this period, NetEase demonstrated robust growth, with total revenues increasing by 8% year-over-year to RMB 28.4 billion.</li><li>This growth was mainly propelled by a 12% rise in revenues from its games and related value-added services, emphasizing the company's strength in game content production and delivery.</li></ul>

NetEase, Inc., a key player in the global gaming industry, recently showcased its third-quarter earnings for 2025, highlighting both its strategic advancements and challenges.Throughout this period, NetEase demonstrated robust growth, with total revenues increasing by 8% year-over-year to RMB 28.4 billion.This growth was mainly propelled by a 12% rise in revenues from its games and related value-added services, emphasizing the company's strength in game content production and delivery.

NetEase’s New Business Models Look Disruptive—Could This Be the Next Massive Competitive Edge?

Smartkarma AI, Smartkarma

αSK

Smartkarma AI

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<ul>
 <li>
<a href="https://smartkarma.com/entities/netease-inc">NetEase </a>is a dominant force in China's gaming market, second only to Tencent, with a proven track record of developing and operating highly successful and long-running PC and mobile games, which form the bedrock of its revenue and profitability.</li>
 <li>The company is actively pursuing a global expansion strategy to diversify its revenue base beyond China, establishing overseas studios and investing in international talent to create content for a global audience. This move is crucial for mitigating risks associated with the domestic regulatory environment.</li>
 <li>Beyond its core gaming business, <a href="https://smartkarma.com/entities/netease-inc">NetEase </a>is cultivating a diversified ecosystem that includes its online education service (Youdao), a popular music streaming platform (<a href="https://smartkarma.com/entities/netease-inc">NetEase </a>Cloud Music), and other innovative businesses, although these currently contribute a smaller portion of overall revenue.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
NetEase is a dominant force in China's gaming market, second only to Tencent, with a proven track record of developing and operating highly successful and long-running PC and mobile games, which form the bedrock of its revenue and profitability.
  The company is actively pursuing a global expansion strategy to diversify its revenue base beyond China, establishing overseas studios and investing in international talent to create content for a global audience. This move is crucial for mitigating risks associated with the domestic regulatory environment.
  Beyond its core gaming business, NetEase is cultivating a diversified ecosystem that includes its online education service (Youdao), a popular music streaming platform (NetEase Cloud Music), and other innovative businesses, although these currently contribute a smaller portion of overall revenue.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>NetEase announced 3Q25 results: total revenue grew by 8% YoY to RMB28.4bn, 3% below Bloomberg consensus estimate; operating income increased by 12% YoY to RMB8.0bn, below consensus estimate of RMB9.2bn, primarily attributable to the higher-than-expected marketing expenses.</li><li>Nonetheless, we remain upbeat on the games revenue growth outlook in 4Q25E and FY26E, supported by NetEase’s quality game pipeline, solid performance of legacy titles and healthy growth of contract liabilities (+25% YoY in 3Q25).</li><li>In view of increased marketing spending, we slightly lower our FY25-27E nonGAAP net income forecast by 0-1%. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NetEase announced 3Q25 results: total revenue grew by 8% YoY to RMB28.4bn, 3% below Bloomberg consensus estimate; operating income increased by 12% YoY to RMB8.0bn, below consensus estimate of RMB9.2bn, primarily attributable to the higher-than-expected marketing expenses.Nonetheless, we remain upbeat on the games revenue growth outlook in 4Q25E and FY26E, supported by NetEase’s quality game pipeline, solid performance of legacy titles and healthy growth of contract liabilities (+25% YoY in 3Q25).In view of increased marketing spending, we slightly lower our FY25-27E nonGAAP net income forecast by 0-1%. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NetEase (NTES US) - Solid Games Business Outlook on Quality Pipeline and Evergreen Games

<ul><li>NetEase, Inc.'s second quarter financial results for 2025 illustrate a mixed yet promising outlook for the company.</li><li>The broad performance metrics highlight both robust areas of growth and certain challenges the company continues to face.</li><li>Key revenue drivers include the gaming and related value-added services (VAS) segment, which saw a 14% increase year-over-year, buoyed by solid returns from existing game franchises and successful new game launches like "Where Winds Meet" and "Marvel Rivals." Notably, the company’s expertise in offering diverse gaming experiences and its strategic global expansion have positively influenced revenue growth.</li></ul>

NetEase, Inc.'s second quarter financial results for 2025 illustrate a mixed yet promising outlook for the company.The broad performance metrics highlight both robust areas of growth and certain challenges the company continues to face.Key revenue drivers include the gaming and related value-added services (VAS) segment, which saw a 14% increase year-over-year, buoyed by solid returns from existing game franchises and successful new game launches like "Where Winds Meet" and "Marvel Rivals." Notably, the company’s expertise in offering diverse gaming experiences and its strategic global expansion have positively influenced revenue growth.

NetEase: Can Its Latest AI Innovation Propel It Into the Next Era of Gaming Leadership?

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>China announced game approval for the August batch. The number of games approved remained at a higher level than 2023.</li>
<li>The number of game approval in August marked the record high level since the resumption post tightening.</li>
<li>Of the companies that we are monitoring, Netease and Bilibili got approval for one game each.</li>
</ul>


China announced game approval for the August batch. The number of games approved remained at a higher level than 2023.
The number of game approval in August marked the record high level since the resumption post tightening.
Of the companies that we are monitoring, Netease and Bilibili got approval for one game each.


Tencent/Netease: Netease and Bilibili Got One Each in August

China

NetEase, Inc. operates as an leading internet technology company providing online services including content, community, communication, and commerce. The Company develops and operates online games, electronic commerce, internet media, innovative business, and other businesses. NetEase expands its businesses to Japan, North American, and other other international markets.

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NetEase (9999 HK)

NetEase’s New Business Models Look Disruptive—Could This Be the Next Massive Competitive Edge?

NetEase, Inc., a key player in the global gaming industry, recently showcased its third-quarter earnings for 2025, highlighting both its strategic...

Baptista Research

Primer: NetEase (9999 HK) - Dec 2025

NetEase is a dominant force in China's gaming market, second only to Tencent, with a proven track record of developing and operating highly...

αSK

NetEase (NTES US) - Solid Games Business Outlook on Quality Pipeline and Evergreen Games

We roll forward our valuation window to FY26E, and fine-tune our SOTP-derived target price to US$164.0 (previous: US$160.0). Maintain BUY.

CMB International

NetEase: Can Its Latest AI Innovation Propel It Into the Next Era of Gaming Leadership?

NetEase, Inc.'s second quarter financial results for 2025 illustrate a mixed yet promising outlook for the company. The broad performance metrics...

Baptista Research

Tencent/Netease: Netease and Bilibili Got One Each in August

We analyzed the game approval issued by NPPA for Chinese online game players for the month of August. Game approvals for large players are slow so...

Ke Yan, CFA, FRM

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