NetEase Inc ADR

NTES: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$476.00	Lpgrtpq	Rwgcgmy

NetEase Earnings: Management Reassures as Growth Continues Amid Regulatory Stability

Ivan Su

May 24, 2024

Narrow-moat NetEase’s first-quarter earnings were in line with our expectations. Management clarified recent updates to its legacy title, Fantasy Westward Journey, confirming that these were not regulatory-driven, thereby providing reassurance to investors. With an impressive lineup of releases scheduled for this summer, NetEase is poised for a strong showing. We maintain our earnings estimates and keep our fair value estimates at USD 158 and HKD 246 per share. We continue to view shares as undervalued.

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