NetEase Inc Ordinary Shares 09999

Morningstar Rating

Company Report

NetEase’s R&D Strengths Are Key to Developing Next-Generation Blockbuster Games

NetEase started as a Chinese internet portal in the late 1990s but has now become the second-largest mobile game company in the world. The firm owns one of the most well-known massively multiplayer franchise in China—Fantasy Westward Journey. Over the past decade, NetEase has capitalized on the industry shift toward mobile gaming and now focuses on developing innovative, high-quality, and long-cycle games with a mobile-first approach. Over the past years, the firm has established iconic titles such as Onmyoji, Naraka Bladepoint, and Identity V. Every year, the company publishes dozens of games spanning across almost every genre. In addition, NetEase is also collaborating with firms such as Microsoft and Marvel to release games based on famous global intellectual property like Diablo, Harry Potter, and Lord of the Rings. Over the foreseeable future, we expect NetEase to continue to leverage its in-house research and development capabilities and user data to develop next-generation games.

Price vs Fair Value

09999 is trading at a 365% premium.
Price
HK$161.10
Fair Value
HK$788.00
Uncertainty
High
1-Star Price
HK$188.50
5-Star Price
HK$287.50
Economic Moat
Dmmlr
Capital Allocation
Hlyzpfkt

Bulls Say, Bears Say

Bulls

NetEase’s expertise in asymmetric multiplayer (Identity V and Dead by Daylight) would allow it to capitalize on future opportunities in this genre.

Bears

Leadership changes at Activision Blizzard can further delay the launch of much anticipated Diablo Immortal.

News

Trading Information

Previous Close Price
Day Range
52-Week Range
Bid/Ask
/
Market Cap
Volume/Avg
/

Key Statistics

Price/Earnings (Normalized)
14.63
Price/Sales
4.51
Dividend Yield (Trailing)
2.43%
Dividend Yield (Forward)
1.68%
Total Yield
3.30%

Company Profile

NetEase, which started on an internet portal service in 1997, is a leading online services provider in China. Its key services include online/mobile games, cloud music, media, advertising, email, live streaming, online education, and e-commerce. The company develops and operates some of the China’s most popular PC client and mobile games, and it partners with global leading game developers, such as Blizzard Entertainment and Mojang (a Microsoft subsidiary).
Sector
Communication Services
Industry
Electronic Gaming & Multimedia
Stock Style Box
Large Core
Total Number of Employees
29,128

Competitors

Valuation

Metric
09999
00302
00700
Price/Earnings (Normalized)
14.6360.9321.13
Price/Book Value
3.690.504.76
Price/Sales
4.511.196.64
Price/Cash Flow
13.8012.2717.94
Price/Earnings
09999
00302
00700

Financial Strength

Metric
09999
00302
00700
Quick Ratio
2.811.221.17
Current Ratio
3.011.671.35
Interest Coverage
−12.4316.38
Quick Ratio
09999
00302
00700

Profitability

Metric
09999
00302
00700
Return on Assets (Normalized)
17.90%−3.98%12.28%
Return on Equity (Normalized)
26.23%−4.93%23.79%
Return on Invested Capital (Normalized)
19.53%−4.27%15.34%
Return on Assets
09999
00302
00700

Electronic Gaming & Multimedia Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NetEase Inc Ordinary Shares
NETTF
Pbszr$66.7 Bil
NetEase Inc ADR
NTES
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Nintendo Co Ltd ADR
NTDOY
Fhwc$61.7 Bil
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Take-Two Interactive Software Inc
TTWO
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NEXON Co Ltd
NEXOF
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NEXON Co Ltd ADR
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Bilibili Inc ADR
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