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

Equity Bottom-Up

<ul>
<li>We expect NTES to report C3Q24 revenue, GAAP operating profit and GAAP net income in (3.8%), in-line and in-line vs. consensus. </li>
<li>Main reason for the revenue miss was product aging in &lt;Justice Mobile&gt; and &lt;Eggy Party&gt; offsetting &lt;Naraka Mobile&gt;;</li>
<li>We cut TP from US$122 to US$110 to reflect the downward pressure from product aging to sustain, but maintaining a BUY rating due to the promising pipeline. </li>
</ul>


We expect NTES to report C3Q24 revenue, GAAP operating profit and GAAP net income in (3.8%), in-line and in-line vs. consensus. 
Main reason for the revenue miss was product aging in &lt;Justice Mobile&gt; and &lt;Eggy Party&gt; offsetting &lt;Naraka Mobile&gt;;
We cut TP from US$122 to US$110 to reflect the downward pressure from product aging to sustain, but maintaining a BUY rating due to the promising pipeline. 


[NetEase, Inc. (NTES US, BUY, TP US$110) TP Change]: C3Q24 Preview: Revenue Miss but Is Temporary

Thematic (Sector/Industry)

<ul>
<li>JD US/3690 HK/BABA US:JD.com’s 7FRESH Supermarket lowers prices to gain traffic, challenging Meituan and Freshippo (+/+/+)</li>
<li>1024 HK:Kuaishou's Overseas Short-video Platform Kwai Officially Launches E-commerce in Brazil (+)</li>
<li>1024 HK:Kuaishou Game &lt;Endless Dream&gt; Surpasses 10 Million Pre-Registered Players, Announces Collaboration with &lt;Soul Knight&gt; (+)</li>
</ul>


JD US/3690 HK/BABA US:JD.com’s 7FRESH Supermarket lowers prices to gain traffic, challenging Meituan and Freshippo (+/+/+)
1024 HK:Kuaishou's Overseas Short-video Platform Kwai Officially Launches E-commerce in Brazil (+)
1024 HK:Kuaishou Game &lt;Endless Dream&gt; Surpasses 10 Million Pre-Registered Players, Announces Collaboration with &lt;Soul Knight&gt; (+)


[Blue Lotus Daily-TMT Update]:JD/3690HK/BABA/1024HK/700HK/BIDU/3092JP/4385JP/PDD/1810HK/NTES /MSFT

Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

Quantitative Analysis

<ul>
<li>An overview (and output) of our machine learning-driven GEM screening model, which seeks to find the best medium-term long ideas within the top 100 stocks in the MSCI GEM Index.</li>
<li>The model is based on 1) a quantitative multifactor screening model, enhanced by two AI Technology-based approaches; 2) a Deep Neural Network model, and 3) a Recurrent Neural Network model.</li>
<li>Developed over roughly 4 years and implemented in its current state for over 3 years, the model has a solid real-world alpha-generating performance track record, discussed in detail below.</li>
</ul>


An overview (and output) of our machine learning-driven GEM screening model, which seeks to find the best medium-term long ideas within the top 100 stocks in the MSCI GEM Index.
The model is based on 1) a quantitative multifactor screening model, enhanced by two AI Technology-based approaches; 2) a Deep Neural Network model, and 3) a Recurrent Neural Network model.
Developed over roughly 4 years and implemented in its current state for over 3 years, the model has a solid real-world alpha-generating performance track record, discussed in detail below.


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 October batch. The number of games approved remained at a higher level than 2023.</li>
<li>The pace of China game approval appears to have accelerated to the same level as pre-tightening.</li>
<li>None of the companies that we are tracking got any approval for October batch.</li>
</ul>


China announced game approval for the October batch. The number of games approved remained at a higher level than 2023.
The pace of China game approval appears to have accelerated to the same level as pre-tightening.
None of the companies that we are tracking got any approval for October batch.


Tencent/Netease: Zeroed Again After Three Months

<ul>
<li>700 HK: Tencent Timi L1 Studio General Manager Huang Lanxiao Steps Down, Will Fully Oversee &lt;Honor of Kings&gt; Global Esports Development (/)</li>
<li>700 HK/300027 CH: &lt;Black Myth: Wukong&gt; DLC Development May Have Started (+/+)</li>
<li>700 HK: Tencent Extends Partnership with NBA Until 2027 as “NBA China’s Exclusive Digital Media Partner” (+)</li>
</ul>


700 HK: Tencent Timi L1 Studio General Manager Huang Lanxiao Steps Down, Will Fully Oversee &lt;Honor of Kings&gt; Global Esports Development (/)
700 HK/300027 CH: &lt;Black Myth: Wukong&gt; DLC Development May Have Started (+/+)
700 HK: Tencent Extends Partnership with NBA Until 2027 as “NBA China’s Exclusive Digital Media Partner” (+)


[Blue Lotus Daily-TMT Update]:700 HK/300027 CH/NTES US/TCOM US

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, Inc. (NTES US, BUY, TP US$110) TP Change]: C3Q24 Preview: Revenue Miss but Is Temporary

NTES expected to report mixed Q3 results with revenue miss due to product aging, but maintains BUY rating with promising pipeline. TP cut from...

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:JD/3690HK/BABA/1024HK/700HK/BIDU/3092JP/4385JP/PDD/1810HK/NTES /MSFT

JD.com's 7FRESH Supermarket lowers prices to compete with Meituan and Freshippo, Kuaishou launches e-commerce in Brazil and announces...

Blue Lotus Research Institute

Screening for GEMs: November 2024

This insight provides an overview of our, machine learning-driven, proprietary GEM screening model, based on a Multifactor model, a Deep Neural...

Wium Malan, CFA

Tencent/Netease: Zeroed Again After Three Months

We analyzed the game approval issued by NPPA for Chinese online game players for the month of October. None of the stocks we are tracking got any...

Ke Yan, CFA, FRM

[Blue Lotus Daily-TMT Update]:700 HK/300027 CH/NTES US/TCOM US

Tencent makes strategic moves in esports and digital media partnerships, with leadership changes and new developments in gaming.

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[NetEase, Inc. (NTES US, BUY, TP US$110) TP Change]: C3Q24 Preview: Revenue Miss but Is Temporary

​NTES expected to report mixed Q3 results with revenue miss due to product aging, but maintains BUY rating with promising pipeline. TP cut from...

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:JD/3690HK/BABA/1024HK/700HK/BIDU/3092JP/4385JP/PDD/1810HK/NTES /MSFT

​JD.com's 7FRESH Supermarket lowers prices to compete with Meituan and Freshippo, Kuaishou launches e-commerce in Brazil and announces...

Blue Lotus Research Institute

Screening for GEMs: November 2024

This insight provides an overview of our, machine learning-driven, proprietary GEM screening model, based on a Multifactor model, a Deep Neural...

Wium Malan, CFA

Tencent/Netease: Zeroed Again After Three Months

We analyzed the game approval issued by NPPA for Chinese online game players for the month of October. None of the stocks we are tracking got any...

Ke Yan, CFA, FRM

[Blue Lotus Daily-TMT Update]:700 HK/300027 CH/NTES US/TCOM US

​Tencent makes strategic moves in esports and digital media partnerships, with leadership changes and new developments in gaming.

Blue Lotus Research Institute

NTES expected to report mixed Q3 results with revenue miss due to product aging, but maintains BUY rating with promising pipeline. TP cut from...

JD.com's 7FRESH Supermarket lowers prices to compete with Meituan and Freshippo, Kuaishou launches e-commerce in Brazil and announces...

Tencent makes strategic moves in esports and digital media partnerships, with leadership changes and new developments in gaming.