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. reported steady financial and operational performance for the second quarter of 2026, with total net revenue reaching RMB 30.1 billion (USD 4.4 billion), driven predominantly by its games business.</li><li>The company’s games and related value-added services (VAS) generated RMB 25 billion in net revenues, reflecting a 10% year-over-year increase, despite a 2% sequential decline attributed primarily to certain self-developed and licensed titles.</li><li>This growth was supported by a diverse portfolio spanning original IPs, live operations, and innovations such as the recent launch of Sea of Remnants in China and new content updates to established games like Sword of Justice, Identity V, and the NARAKA: BLADEPOINT franchise.</li></ul>

NetEase, Inc. reported steady financial and operational performance for the second quarter of 2026, with total net revenue reaching RMB 30.1 billion (USD 4.4 billion), driven predominantly by its games business.The company’s games and related value-added services (VAS) generated RMB 25 billion in net revenues, reflecting a 10% year-over-year increase, despite a 2% sequential decline attributed primarily to certain self-developed and licensed titles.This growth was supported by a diverse portfolio spanning original IPs, live operations, and innovations such as the recent launch of Sea of Remnants in China and new content updates to established games like Sword of Justice, Identity V, and the NARAKA: BLADEPOINT franchise.

NetEase’s $4.4 Billion Quarter — Gaming Growth Meets A Leaner Pipeline!

Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

TSMC (Taiwan Semiconductor Manufacturing) / Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing) (2330 TT)

TSMC (Taiwan Semiconductor Manufacturing)

<ul>
<li>Since the last rebalancing on 30th January, our portfolio appreciated 3.4% against MSCI Asia-ex-Japan's 1%. Since inception on May 15, 2025, our portfolio has appreciated 35.8%, vs MXASJ's 32.8%. </li>
<li>Since last reshuffle, the portfolio was driven by Korea (2.57% return contribution), Taiwan (1.3%) and India (0.75%). Four Chinese internet stocks, Alibaba, Tencent, Tencent Music and Netease, contributed -1.97% return.</li>
<li>We now exclude Dr Lal Pathlabs in India and include Tata Steel. We also include Maybank in Malaysia. All our inclusions have seen sharp EPS estimate upgrades lately.</li>
</ul>


Since the last rebalancing on 30th January, our portfolio appreciated 3.4% against MSCI Asia-ex-Japan's 1%. Since inception on May 15, 2025, our portfolio has appreciated 35.8%, vs MXASJ's 32.8%. 
Since last reshuffle, the portfolio was driven by Korea (2.57% return contribution), Taiwan (1.3%) and India (0.75%). Four Chinese internet stocks, Alibaba, Tencent, Tencent Music and Netease, contributed -1.97% return.
We now exclude Dr Lal Pathlabs in India and include Tata Steel. We also include Maybank in Malaysia. All our inclusions have seen sharp EPS estimate upgrades lately.


Asian Equities: Model Portfolio - We Reshuffle India, Add Malaysia; Korea Remains Biggest Overweight

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Thematic (Sector/Industry)

<ul>
<li>China announced game approval for the September batch. The number of games approved is higher than in 2023 and 2024.</li>
<li>The pace of China game approval is above its pre-tightening level of August 2020 to July 2021.</li>
<li>Of the companies that we are monitoring, none got approval.</li>
</ul>


China announced game approval for the September batch. The number of games approved is higher than in 2023 and 2024.
The pace of China game approval is above its pre-tightening level of August 2020 to July 2021.
Of the companies that we are monitoring, none got approval.


Tencent/Netease: Two Months Without Approvals Despite Second-Highest Count Since 2022

Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

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

Research Reinvented

<ul>
  <li>NetEase is a dominant force in the Chinese online gaming market, second only to Tencent, with a strong portfolio of self-developed, long-lasting intellectual properties (IPs) that drive the majority of its revenue and profits.</li>
  <li>The company demonstrates robust financial health, characterized by consistent revenue growth, high and expanding margins, and strong free cash flow generation, supporting both significant R&amp;D investment and shareholder returns through dividends and buybacks.</li>
  <li>Future growth is expected to be driven by a strong pipeline of new game releases, including high-profile titles like 'Marvel Rivals', continued international expansion to reduce geographic concentration, and the growth of its non-gaming segments such as Cloud Music and Youdao.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  NetEase is a dominant force in the Chinese online gaming market, second only to Tencent, with a strong portfolio of self-developed, long-lasting intellectual properties (IPs) that drive the majority of its revenue and profits.
  The company demonstrates robust financial health, characterized by consistent revenue growth, high and expanding margins, and strong free cash flow generation, supporting both significant R&amp;D investment and shareholder returns through dividends and buybacks.
  Future growth is expected to be driven by a strong pipeline of new game releases, including high-profile titles like 'Marvel Rivals', continued international expansion to reduce geographic concentration, and the growth of its non-gaming segments such as Cloud Music and Youdao.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/netease-inc" target="_blank" data-smartkarma-citation="entities:29030:1" rel="noopener">NetEase (9999 HK)</a> converted from a Secondary Listing to a Dual Primary Listing on the <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing-ltd" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a> on 30 June as added to Southbound Stock Connect the same day.</li>
<li>There has been steady buying in <a href="https://www.smartkarma.com/entities/netease-inc" target="_blank" data-smartkarma-citation="entities:29030:1" rel="noopener">NetEase (9999 HK)</a> via the link in the past 2 weeks and the inclusion in the HKC Internet index should double those holdings.</li>
<li>
<a href="https://www.smartkarma.com/entities/marketingforce-management-ltd" target="_blank" data-smartkarma-citation="entities:36572:1" rel="noopener">Marketingforce (2556 HK)</a> will be deleted from the index, and the stock could break to new lows as passives sell.</li>
</ul>



NetEase (9999 HK) converted from a Secondary Listing to a Dual Primary Listing on the HKEX (388 HK) on 30 June as added to Southbound Stock Connect the same day.
There has been steady buying in NetEase (9999 HK) via the link in the past 2 weeks and the inclusion in the HKC Internet index should double those holdings.

Marketingforce (2556 HK) will be deleted from the index, and the stock could break to new lows as passives sell.


CSI HKC Internet Index Adhoc Rebalance: NetEase (9999 HK) Buying at the Close Today

China

NetEase is a Chinese Internet technology company that provides online services across various sectors. Its core businesses include the development and operation of desktop and mobile games, alongside services in news aggregation, music streaming (NetEase Cloud Music), online education (Youdao), advertising, email, and e-commerce (Yanxuan). The company is headquartered in Hangzhou, China, and was founded in June 1997.

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NetEase (9999 HK)

NetEase’s $4.4 Billion Quarter — Gaming Growth Meets A Leaner Pipeline!

NetEase, Inc. reported steady financial and operational performance for the second quarter of 2026, with total net revenue reaching RMB 30.1...

Baptista Research

Asian Equities: Model Portfolio - We Reshuffle India, Add Malaysia; Korea Remains Biggest Overweight

Our Portfolio outperformed MXASJ since last reshuffle & since inception, driven by KR, TW & IN. We include reasonably valued stocks with strong...

Manishi Raychaudhuri

Tencent/Netease: Two Months Without Approvals Despite Second-Highest Count Since 2022

NPPA released its September 2026 domestic game approval batch. None of the companies we track received approval despite the overall approval count...

Ke Yan, CFA, FRM

Primer: NetEase Inc (NTES US) - Aug 2026

NetEase is a dominant force in the Chinese online gaming market, second only to Tencent, with a strong portfolio of self-developed, long-lasting...

αSK Primers

CSI HKC Internet Index Adhoc Rebalance: NetEase (9999 HK) Buying at the Close Today

NetEase replaces Marketingforce in the HKC Internet Index after the close today. Mainland investors have been buying NetEase via Connect....

Brian Freitas

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

NetEase’s $4.4 Billion Quarter — Gaming Growth Meets A Leaner Pipeline!

NetEase, Inc. reported steady financial and operational performance for the second quarter of 2026, with total net revenue reaching RMB 30.1...

Baptista Research

Asian Equities: Model Portfolio - We Reshuffle India, Add Malaysia; Korea Remains Biggest Overweight

​Our Portfolio outperformed MXASJ since last reshuffle & since inception, driven by KR, TW & IN. We include reasonably valued stocks with strong...

Manishi Raychaudhuri

Tencent/Netease: Two Months Without Approvals Despite Second-Highest Count Since 2022

NPPA released its September 2026 domestic game approval batch. None of the companies we track received approval despite the overall approval count...

Ke Yan, CFA, FRM

Primer: NetEase Inc (NTES US) - Aug 2026

NetEase is a dominant force in the Chinese online gaming market, second only to Tencent, with a strong portfolio of self-developed, long-lasting...

αSK Primers

CSI HKC Internet Index Adhoc Rebalance: NetEase (9999 HK) Buying at the Close Today

NetEase replaces Marketingforce in the HKC Internet Index after the close today. Mainland investors have been buying NetEase via Connect....

Brian Freitas

Our Portfolio outperformed MXASJ since last reshuffle & since inception, driven by KR, TW & IN. We include reasonably valued stocks with strong...