reports
- Jin Yoon
NTES 2Q25 Results: Resilient Online Gaming Segment
What’s new: NetEase’s reported 2Q25 revs that were below consensus estimates and our expectations. Gaming rev growth momentum could continue in 3Q as NTES could be more aggressive in the summer months. We up our PT from US$140 to US$150 on resiliency of the gaming segment. Our updated PT of US$150 implies 15.8x FY26E P/E. We maintain our BUY rating. Analysts: Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
NetEase (9999 HK): 2Q25: Results in line; solid game pipeline fuelling...
NetEase’s 2Q25 results were largely within expectations. Revenue grew 9.4% yoy to Rmb27.9b, in line with consensus forecast. Gross profit grew 12.5% yoy to Rmb18.1b, with gross margin rising 2ppt yoy to 64.7%. Non-GAAP operating profit grew 24% yoy to Rmb10b. Non-GAAP net profit rose 22% yoy to Rmb9.5b, in line with consensus estimate. Net margin expanded 4ppt yoy to 34% in 2Q25. Maintain BUY with a higher target price of HK$244.00 (US$151.00).
- Bella Lu Yifei
- Colin Lee
- Damon Shen
- Ejann Hiew
- Greater China Research Team
- Jieqi Liu
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Ken Lee
- Ming San Soong
- Roy Chen Chengzhi
Greater China Daily: Friday, August 15, 2025
KEY HIGHLIGHTS Sector Automobile China’s PEV yoy sales growth turned negative (at -0.5%) during the week. BYD and Li Auto posted a yoy sales decline. We expect EV sales to recover from September with the launch of new models and interest subsidies for auto loans. Lithium carbonate prices rebounded to >Rmb80,000/tonne due to better supply discipline. We upgrade Ganfeng Lithium from HOLD to BUY thanks to lithium price recovery. Maintain MARKET WEIGHT. Top BUYs: CATL, Geely and Tuopu. Results ...
- Julia Pan Mengyao
- Ming San Soong
China Internet: WAIC -- Battlefield of AI applications and agents to r...
WAIC 2025 was held in Shanghai on 26-28 July under the theme "Intelligent Horizons, Shared Future". The focus of WAIC this year shifted from LLM to the next frontier – AI applications and AI agents. As AI capabilities extend from the cloud to edge devices, a transformative evolution in human-AI interaction is underway, characterised by more tangible, embodied forms and empathetic voice interfaces. Maintain MARKET WEIGHT.
- Jin Yoon
BIDU 2Q25 Preview: Ads Continues to be Meaningfully Impacted by the Re...
What’s New: We nudge down our Baidu Core total rev estimates as ads could continue to be meaningfully impacted by the restructuring of AI search. Cloud could also be impacted by fluctuations in project-based revs. Baidu Core margins could also see further downward pressure due to the decline in ad revs in the near-term. Analysts: Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
China Online Games: Upcoming new game releases to capitalise on the su...
We opine that the intact grossing momentum in 2Q25 coupled with the anticipation of high-quality game releases set a compelling prelude to the upcoming summer holiday boom. We like the online game sector as it is a countercyclical play and is less susceptible to the ongoing geopolitical uncertainties. Our preference lies with Tencent, given its strong game grossing growth momentum and its position as a key proxy for AI application beneficiaries. Maintain OVERWEIGHT.
- Pierre FerraguÊ
Ride-sharing & Delivery: Lower prices fuel accelerating volumes
Today, we are publishing the Ride-sharing & Delivery section of our 27th Tech Infrastructure Quarterly Bible. The Tech Bible is a must-read for any tech investor, as it summarizes the quarterly earnings reports from the over 140 companies we track, providing an update on our key perspectives and convictions. In the coming weeks we will publish sections on Automotive, Memory, Hyperscale & Cloud, Telecom Equipment, Industrials, PCs, Enterprise IT, Foundry, Service Provider and Semicap Equipment. ...
- Jin Yoon
BIDU 1Q25 Results: Restructuring of AI Search to Put Pressure on Ad Re...
What’s new: Baidu’s reported 1Q25 results that were above consensus and our expectations driven by AI Cloud. Baidu Core ad rev growth could be impacted by the continued restructuring of AI search. AI Cloud growth could remain resilient in 2Q. We maintain our PT at USD110. Analysts: Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
Baidu Inc (9888 HK): 1Q25: Solid earnings beat; fuelled by AI cloud gr...
Baidu’s 1Q25 earnings beat expectations. Revenue grew 3% yoy to Rmb32.5b, 5% better than consensus estimate. Gross margin dropped 5ppt yoy to 46.1%, below consensus expectation. Non-GAAP operating profit was Rmb5.3b, down 20% yoy, while non-GAAP operating profit margin came in at 16%. Non-GAAP net profit declined 8% yoy to Rmb6.5b, better than consensus estimate. Maintain HOLD with a slightly higher target price of HK$91.00 (US$101.00).
- Bella Lu Yifei
- Greater China Research Team
- Julia Pan Mengyao
- Ken Lee
- Ming San Soong
Greater China Daily: Thursday, May 22, 2025
KEY HIGHLIGHTS Results Baidu Inc (9888 HK/HOLD/HK$86.10/Target: HK$91.00) Baidu’s 1Q25 earnings beat expectations. Revenue grew 3% yoy to Rmb32.5b, 5% better than consensus estimate. Gross margin dropped 5ppt yoy to 46.1%, below consensus expectation. Non-GAAP operating profit was Rmb5.3b, down 20% yoy, while non-GAAP operating profit margin came in at 16%. Non-GAAP net profit declined 8% yoy to Rmb6.5b, better than consensus estimate. Maintain HOLD with a slightly higher target price of HK$91...
NetEase Inc: 1 director
A director at NetEase Inc sold 23,425 shares at 23.600USD and the significance rating of the trade was 87/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly sho...
- Jin Yoon
NTES 1Q25 Results: Gaming Rev Growth Momentum to Continue in 2Q
What’s new: NetEase’s reported 1Q25 results that were above consensus estimates and our expectations. Gaming rev growth momentum could continue in 2Q partly driven by key titles such as Marvel Rivals and Where Winds Meet. We up our PT from US$120 to US$140 on improving outlook. Our updated PT of US$140 implies 16.7x FY25E P/E. We maintain our BY rating. Analysts: Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
NetEase (9999 HK): 1Q25: Solid earnings beat fuelled by revitalised on...
NetEase’s 1Q25 earnings exceeded expectations. Revenue grew 7.4% yoy to Rmb28.8b, largely in line with consensus forecast. Gross profit grew 8.6% yoy to Rmb18.5b, with gross margin rising 1ppt yoy to 64%. Non-GAAP operating profit grew 34% yoy to Rmb11.4b, with operating margin at 39.5%. Non-GAAP net profit rose 32% yoy to Rmb11.2b, beating consensus estimate. Net margin expanded 7ppt yoy to 39% in 1Q25. Maintain BUY with a higher target price of HK$210.00 (US$129.00).
- Carol Dou Xiao Qin
- Claire Wang Kelai
- Greater China Research Team
- Julia Pan Mengyao
- Ken Lee
- Ming San Soong
- Sunny Chen
Greater China Daily: Friday, May 16, 2025
KEY HIGHLIGHTS Sector Automobile China’s PV insurance registrations rose 0.5% yoy, 26.5% mom and 5% wow in the 19th week of 2025, with PEV market share increasing to 50.2%. Geely’s Zeekr, Lynk & Co, and Galaxy saw strong sales growth driven by new model launches, aggressive pricing, tech upgrades, and robust export expansion. We lift Geely’s 2025 net profit forecast by 24%, given its upbeat 1Q25 earnings. Maintain BUY and raise target price to HK$31.00 Maintain MARKET WEIGHT. Top BUYs: BYD, Ge...
- Julia Pan Mengyao
- Ming San Soong
China Internet: Expecting ample monetisation potential on promising ga...
We expect to see an encouraging monetisation momentum given the anticipation of high-quality game releases by online game companies in 2025. We like the online game sector as it is a countercyclical play and is less susceptible to the ongoing geopolitical uncertainties. Our preference lies with Tencent, given its strong game grossing growth momentum and its position as a key proxy for AI application beneficiaries. Maintain MARKET WEIGHT.
- Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
China Internet: Navigating headwinds and uncovering opportunities upon...
Chinese internet companies’ share prices have dropped 10-30% mtd following the implementation of incremental tariffs from the US. Chinese internet companies have limited business exposure to the US except for PDD’s Temu. However, the 34% tariffs announced by China on all US imports could have potential implications for China mega-caps’ AI capex in relation to US chip imports. We prefer domestic-focused plays which stand to benefit from domestic policy stimuli, with Southbound inflow to be a key ...
NEH NETEASE INC. SPONSORED ADR
JD JD.COM INC. SPONSORED ADR CLASS A
N1U NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. SPONSORED ADR
K3SD BAIDU INC SPONSORED ADR CLASS A
A117ME ALIBABA GROUP HOLDING LTD. SPONSORED ADR
3K1 KINGSOFT CORP. LTD.
00700 TENCENT HOLDINGS LTD.
PDD PINDUODUO INC. SPONSORED ADR CLASS A
03690 MEITUAN CLASS B
00780 TONGCHENG-ELONG HOLDINGS LIMITED
TCOM TRIP.COM GROUP LTD. SPONSORED ADR
09988 ALIBABA GROUP HOLDING LTD.
09999 NETEASE INC
09618 JD.COM INC. CLASS A
01024 KUAISHOU TECHNOLOGY CLASS B
09888 BAIDU INC
09961 CTRIP.COM INTERNATIONAL
- Pierre FerraguÊ
Bible 4Q24 – Mobility & Delivery: Healthy underlying growth
Today, we are publishing the Mobility & Delivery section of our 26th Tech Infrastructure Quarterly Bible. The Tech Bible is a must-read for any tech investor, as it summarizes the quarterly earnings reports from the over 140 companies we track, providing an update on our key perspectives and convictions. Later this week we will publish sections on Memory, Semicap, Enterprise IT, PC. Ride-sharing bookings decelerated slightly but still posted robust double-digit growth, while delivery bookings a...
- Jin Yoon
NTES 4Q24 Results: Gaming Could Remain Resilient in 1Q
What’s new: NetEase’s reported 4Q24 revs that were below consensus estimates and our expectations. Gaming could remain resilient in 1Q partly driven by new titles such as Marvel Rivals and Where Winds Meet, while other segments could remain under pressure as NTES could prioritize profitability over scale in the near-term. We maintain our PT at USD120. Analysts: Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
NetEase (9999 HK): 4Q24: Solid earnings beat; promising pipeline and A...
NetEase’s 4Q24 earnings were above expectations. Revenue dropped 1% yoy to Rmb26.7b, largely in line with consensus forecast. Gross profit dipped 3% yoy to Rmb16.3b, with gross margin rising 1ppt yoy to 61%. Non-GAAP operating profit grew 14% yoy to Rmb8.7b, with operating margin at 32.7%. Non-GAAP net profit rose 31.2% yoy to Rmb9.7b, beating consensus estimate. Net margin expanded 9ppt yoy to 36% in 4Q24. Maintain BUY with a higher target price of HK$200.00 (US$128.00).
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