Professional
Added to YB: 2024-06-05
Pitch date: 2024-05-28
NTES [bullish]
NetEase, Inc.
+62.03%
current return
Author Info
No bio for this author
Company Info
NetEase, Inc. engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally.
Market Cap
HKD 591.8B
Pitch Price
HKD 85.87
Price Target
158.00 (+14%)
Dividend
1.97%
EV/EBITDA
12.03
P/E
16.55
EV/Sales
4.07
Sector
Entertainment
Category
growth
NetEase’s R&D Strengths Are Key to Developing Next-Generation Blockbuster Games
NTES: #2 mobile game co globally. Owns iconic IP like Fantasy Westward Journey. Leveraging R&D to develop next-gen games across genres. 30%+ gaming margins, diversifying into new franchises. Cloud music biz has 200M MAUs. Risks: Diablo delay, geopolitical tensions, regulatory changes. Narrow moat from IP. Forecast 11% rev CAGR, 16% EBIT CAGR next 5yrs. $158 FVE (20x 2024 P/E). High uncertainty from Chinese regulation & hit-driven nature of games.
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