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.

Equity Bottom-Up

<ul><li>NetEase reported 4Q24 results on 20 Feb: total revenue was down by 1.4% YoY to RMB26.7bn, largely in line with consensus estimates; operating profit grew by 13.9% YoY to RMB7.8bn, 8% ahead of consensus estimates, mainly attributable to the prudent control of S&amp;M expenses (-33% YoY).</li><li>Total revenue and operating profit grew by 2% and 7% YoY in FY24 respectively.</li><li>Looking into FY25E, we expect new game titles such as Marvel Rivals and Where Winds Meet to drive reacceleration of games revenue growth.  prudent opex control. We maintain our SOTPderived target price of US$125.5. Maintain BUY</li></ul><p><em>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.</em></p>

NetEase reported 4Q24 results on 20 Feb: total revenue was down by 1.4% YoY to RMB26.7bn, largely in line with consensus estimates; operating profit grew by 13.9% YoY to RMB7.8bn, 8% ahead of consensus estimates, mainly attributable to the prudent control of S&amp;M expenses (-33% YoY).Total revenue and operating profit grew by 2% and 7% YoY in FY24 respectively.Looking into FY25E, we expect new game titles such as Marvel Rivals and Where Winds Meet to drive reacceleration of games revenue growth.  prudent opex control. We maintain our SOTPderived target price of US$125.5. Maintain BUYContent 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) - Steady 4Q24 Performance; New Game Titles to Support FY25 Revenue Growth

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 December 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. There have been 47% more games approved in 2024 compared to 2023.</li>
<li>Of the companies that we are monitoring, Netease got one approval.</li>
</ul>


China announced game approval for the December 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. There have been 47% more games approved in 2024 compared to 2023.
Of the companies that we are monitoring, Netease got one approval.


Tencent/Netease: Game Approval Trending up but Only One Approval for Netease

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Event-Driven

<ul>
<li>PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.</li>
<li>The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.</li>
<li>In this note, we'll talk about the latest developments, possible outcomes and implications.</li>
</ul>


PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.
The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.
In this note, we'll talk about the latest developments, possible outcomes and implications.


China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

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.

<ul><li>NetEase's recent quarterly earnings report demonstrates a mixed performance characterized by both promising growth areas and some challenges.</li><li>The company's overall financial health remains strong, supported by diversified business operations in gaming, education, music, and other innovative ventures.</li><li>In the gaming segment, NetEase achieved solid results, with total online games net revenue reaching approximately RMB 20 billion, indicating substantial year-over-year and quarter-over-quarter growth in PC games.</li></ul>

NetEase's recent quarterly earnings report demonstrates a mixed performance characterized by both promising growth areas and some challenges.The company's overall financial health remains strong, supported by diversified business operations in gaming, education, music, and other innovative ventures.In the gaming segment, NetEase achieved solid results, with total online games net revenue reaching approximately RMB 20 billion, indicating substantial year-over-year and quarter-over-quarter growth in PC games.

NetEase Inc.: The Expansion of Gaming Portfolio & Global Reach & Other Major Drivers

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

<ul>
<li>NetEase reported C3Q24 revenue, GAAP operating profit and GAAP net income in line, (3.6%) and (5.3%) vs. our estimates, and in line, (4.4%) and (5.0%) vs. consensus. </li>
<li>Mobile game revenue decline is less a concern due to imminent pipeline launches, but PC game’s significantly beat is a positive surprise. </li>
<li>We raised the TP to US$118 for the better outlook of new game launches.</li>
</ul>


NetEase reported C3Q24 revenue, GAAP operating profit and GAAP net income in line, (3.6%) and (5.3%) vs. our estimates, and in line, (4.4%) and (5.0%) vs. consensus. 
Mobile game revenue decline is less a concern due to imminent pipeline launches, but PC game’s significantly beat is a positive surprise. 
We raised the TP to US$118 for the better outlook of new game launches.


[NetEase, Inc. (NTES US, BUY, TP US$118) TP Change]: Growth Rebounds Ahead from Both PC and Mobile

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 (NTES US) - Steady 4Q24 Performance; New Game Titles to Support FY25 Revenue Growth

NetEase reported 4Q24 results on 20 Feb: total revenue was down by 1.4% YoY to RMB26.7bn, largely in line with consensus estimates

CMB International

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh

NetEase Inc.: The Expansion of Gaming Portfolio & Global Reach & Other Major Drivers

NetEase's recent quarterly earnings report demonstrates a mixed performance characterized by both promising growth areas and some challenges. The...

Baptista Research

[NetEase, Inc. (NTES US, BUY, TP US$118) TP Change]: Growth Rebounds Ahead from Both PC and Mobile

NetEase reports solid C3Q24 revenue with mobile game revenue decline offset by strong PC game performance, leading to raised price target of US$118.

Blue Lotus Research Institute

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NetEase (NTES US) - Steady 4Q24 Performance; New Game Titles to Support FY25 Revenue Growth

NetEase reported 4Q24 results on 20 Feb: total revenue was down by 1.4% YoY to RMB26.7bn, largely in line with consensus estimates

CMB International

Tencent/Netease: Game Approval Trending up but Only One Approval for Netease

We analyzed the game approval issued by NPPA for Chinese online game players for the month of December. Of names that we track, Netease received...

Ke Yan, CFA, FRM

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh

NetEase Inc.: The Expansion of Gaming Portfolio & Global Reach & Other Major Drivers

NetEase's recent quarterly earnings report demonstrates a mixed performance characterized by both promising growth areas and some challenges. The...

Baptista Research

[NetEase, Inc. (NTES US, BUY, TP US$118) TP Change]: Growth Rebounds Ahead from Both PC and Mobile

​NetEase reports solid C3Q24 revenue with mobile game revenue decline offset by strong PC game performance, leading to raised price target of US$118.

Blue Lotus Research Institute

NetEase reports solid C3Q24 revenue with mobile game revenue decline offset by strong PC game performance, leading to raised price target of US$118.