NTES will release 2Q21 results in mid-August. We are positive on NTES for 2Q21. While 2Q21 was a relatively quiet quarter for games and other forms of entertainment, NTES managed to release new games, including Revelation, Yu-Gi-Oh! Duel Links, Dream and Lethe Record, and Pokémon Quest. Among these, Revelation Mobile has become popular. The new games are making contributions to both 2Q21 and 3Q21. In addition to domestic game market, NTES is aggressively expanding internationally. At NTES’s annual product launch event in May, the company released approximately 19 titles that can eventually be distributed overseas. NTES is also negotiating with distribution partners on the fees as it has more advantages in content development, which we believe will lead to better economics for NTES from some new games. Based on our data, NTES’s 2Q21E revenue is likely to be in line with the Street consensus at RMB20,489M (12.7% Y/Y growth).
T.H. Capital is an independent research and investment advisory firm specializing in China. We offers real-time, on-the-ground, bottom-up research across a wide spectrum from macro and industry analysis to company specific projects; from China ADRs to international names that have meaningful exposure to China market. We deliver relevant, comprehensive and data driven research adding immense value to clients.
What's new: NetEase reported 2Q21 revenues largely in-line with consensus estimates. Resiliency in legacy games coupled with the strong game pipeline could continue to drive online gaming revenues in 2H. We expect minimal financial impact from the updated guidelines on further restricting minor time spent on online games. We maintain our BUY rating and PT at USD120. Analysts: Jin Yoon
Cloud Village Inc. (CVI), also known as NetEase Music, plans to raise around US$1bn in its Hong Kong IPO. The company has also obtained investments from Baidu and Alibaba, along with other investors. As of Mar 21, it had 183m online music MAUs, 24m online music services monthly paying users, 438,000 social entertainment services monthly paying users. It had over 60m music tracks, of which more than 1m were created by registered independent artists. Its daily active users on average spent 76mins daily listening to music. CVI’s revenue has grown 4.3x over FY18-20, to RMB4.9bn. There have been...
Cloud Village Inc. (CVI), also known as NetEase Music, plans to raise around US$1bn in its Hong Kong IPO. The company has also obtained investments from Baidu and Alibaba, along with other investors. As of Dec 20, it had 181m online music MAUs, 16m online music services monthly paying users, 327,000 social entertainment services monthly paying users. It had over 60m music tracks, of which more than 1m were created by registered independent artists. Its daily active users on average spent 76mins daily listening to music. CVI’s revenue has grown 4.3x over FY18-20, to RMB4.9bn. There have been...
On September 2, China’s central government announced that the Beijing Stock Exchange will be established to continue to support the innovative development of small and medium-sized enterprises, deepen the reform of the New OTC Market, and create a main platform for service-innovated small and medium-sized enterprises. As a prominent brand and a pioneering platform dedicated to serving New Economy participants in China, 36Kr will benefit from new financing environment for small and medium-sized enterprises.
Meituan will report 2Q21 results on August 30th before the US market opens with a 7am ET conference call. Meituan has been dealing with regulatory policies related to ongoing anti-trust regulations as well as workers’ rights protection issues, which the company has discussed with the market since March and communicated the potential impact to unit economics. The Data Security Law, which is going to be effective on Sept. 1, 2021, is relatively new, and it was passed on June 10, 2021. All internet companies in China are in the process of adopting new practices and measures on data collection, us...
DADA will report 2Q21 results in late August. We are positive on DADA’s 2Q21. We believe DADA is benefitting from the increasing usage of real time delivery services. The lingering COVID has accelerated the adoption for such services. DADA’s unique position has enabled the company to gain new KA accounts and expand into new categories. We believe on-demand delivery is still at its high growth phase, and DADA has years to grow.
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