NTES

Netease Shs Sponsored American Deposit Receipt Repr 25 Shs

TMT


Presented:06/22/2017
Price:$325.28
Cap:$43.18B
Current Price:$82.05
Cap:$51.08B

Presented

Date06/22/2017
Price$325.28
Market Cap$43.18B
Ent Value$23.37B
P/E Ratio22.11x
Book Value$45.54
Div Yield1.36%
Shares O/S132.74M
Ave Daily Vol1,252,413
Short IntN/A

Current

Price$82.05
Market Cap$51.08B
NetEase, Inc. engages in the provision of online internet technology services. It operates through the following business segments: Online Games, Advertising, e-mail Services and E-commerce. The Online Games segment offers multi-player online role-playing games and mobile games. The Advertising segment involves banner advertising, channel sponsorships, direct e-mail, interactive media-rich sites, sponsored special events, games and contests. The e-mail Services segment comprise free and fee-based premium e-mail services. The E-commerce segment provides online selling and payment platform, e-reading applications, matchmaking services, online music, social network, personalized photo-based products, and online game-related accessories. The company was founded by Lei Ding in June 1997 and is headquartered in Beijing, China.,003XDT-E

Publicly traded companies mentioned herein: Microsoft Corp (MSFT), NetEase Inc (NTES), Take-Two Interactive (TTWO), Tencent Holdings Ltd (700 HK), Zynga Inc (ZNGA)

Highlights

The presenter is long shares of NetEase (NTES), a Chinese a video game and e-commerce company, seeing an attractive near-term set-up as well as bullish long-term fundamentals. The presenter sees strong earnings growth but cheap valuation due to a transitioning business model and underappreciation of a shift towards more recurring revenue. The presenter believes NTES has a strong content pipeline over the next 6 - 9 months, including NTES IP as well as licensed international IP, which he models will help drive share price towards $400 by the end of 2017 and upwards of $500 in one year’s time.

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