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

[NetEase (NTES US) Earnings Review]: Eggy Party and Justice Mobile Are Two Catalysts

[NetEase (NTES US) Company Update]: Eggy Party Could Have Long Life Cycle

[Gaming Sector Update]: AIGC: Short-Term Catalyst, Long-Term Challenge

NetEase Inc. (NTES US) – Preparing for next strong product cycle

NetEase Inc. (NTES US) – Sturdy Game and Content Developing Leader

NetEase (9999 HK): Steady Without New Games in 1Q22 and New Games in Pipeline, Buy

Gravity Works As WeWork Doesn't; Now Plan B

Bifurcated Chinese Express Market Developing

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>We estimate that NetEase’s 4Q22 revenue/non-GAAP net income will be in line/12% vs cons. Our 2023’s revenue/non-GAAP net income are in line/12% vs cons.</li>
<li>In 4Q22, several of NetEase’s mid-tier games saw declines in ranking.  We expect that NetEase will have a period of single digit growth in revenue.</li>
<li>We still rate NetEase BUY and raise TP to US$ 87. But NetEase is not our top pick within China internet space.</li>
</ul>


We estimate that NetEase’s 4Q22 revenue/non-GAAP net income will be in line/12% vs cons. Our 2023’s revenue/non-GAAP net income are in line/12% vs cons.
In 4Q22, several of NetEase’s mid-tier games saw declines in ranking.  We expect that NetEase will have a period of single digit growth in revenue.
We still rate NetEase BUY and raise TP to US$ 87. But NetEase is not our top pick within China internet space.


NetEase(NTES.US) 4Q22 Preview: Enter a Period of Lukewarm Performance