Core Viewpoint - The article discusses the recent quarterly holdings of major investment firms, highlighting significant investments in Chinese stocks and the impact of the revaluation of Chinese tech stocks on their portfolios [2][8]. Group 1: HHLR Advisors Holdings - HHLR Advisors reported a total holding value increase from $2.887 billion to $3.539 billion, a nearly 23% rise in Q1 2025 [2]. - The top ten holdings of HHLR include Pinduoduo, Alibaba, Futu Holdings, BeiGene, NetEase, Beike, Legend Biotech, JD.com, Vipshop, and WNS Holdings, with nine of these being Chinese stocks [2]. - HHLR made new investments in ten companies, including Atour Group, Huazhu Group, Baidu, Yuchai International, and Li Auto, with significant increases in holdings for Yum China, Li Auto, and Baidu [4]. Group 2: Performance of New Investments - New investments by HHLR in Yuchai International saw an 80% increase, while BOSS Zhipin and Li Auto rose by 34% and 20%, respectively, as of May 14 [4]. - HHLR increased its holdings in eight companies, including Futu Holdings and Pinduoduo, with Futu Holdings experiencing a 40% rise and Pinduoduo a 23% rise [4]. - HHLR reduced its positions in Alibaba and BeiGene, with Alibaba's stock rising by 56% and BeiGene by 47% during the same period [4]. Group 3: Jinglin Asset Management Holdings - Jinglin Asset Management reported a total holding value of $3.228 billion as of Q1 2025, showing an increase from the previous year [6]. - New investments included Alibaba and Hesai Technology, while they increased holdings in Meta, Beike, TSMC, and New Oriental, and reduced positions in Google, Microsoft, and others [6]. - The top ten holdings of Jinglin include Meta, Pinduoduo, NetEase, and others, with a total holding value of $2.784 billion, representing 86.24% of their total U.S. stock holdings [6]. Group 4: Market Trends and Revaluation - The increase in holdings for HHLR and Jinglin is attributed to the revaluation of Chinese tech stocks, with the Nasdaq Golden Dragon China Index rising by 13.33% in Q1 2025 [8]. - The rapid development of AI models like DeepSeek is reshaping market perceptions of Chinese tech companies, moving away from traditional valuation methods [8]. - The shift in valuation logic is driven by the emergence of independent technological capabilities in Chinese AI firms, leading to a reassessment of their long-term growth potential [9].

Investment Rating - The report maintains a "BUY" rating for NetEase, indicating a potential return of over 15% over the next 12 months [19]. Core Insights - NetEase reported strong 1Q25 results with total revenue growing by 7% YoY to RMB28.8 billion, aligning with consensus estimates. Operating profit surged by 37% YoY to RMB10.4 billion, exceeding consensus by 25%, primarily due to disciplined operating expense control, which decreased by 14% YoY [1][2]. - The games business showed a reacceleration in revenue growth, increasing by 12% YoY in 1Q25, supported by a 19% YoY growth in contract liabilities, which is expected to bolster future revenue [1][7]. - The target price for NetEase has been raised to US$136.5 from the previous US$125.5, reflecting a 27.4% upside from the current price of US$107.11 [3][11]. Financial Performance Summary - **Revenue Forecasts**: The revenue for FY25 is estimated at RMB113.1 billion, with projections for FY26 and FY27 at RMB121.1 billion and RMB128.9 billion, respectively [2][8]. - **Profitability Metrics**: Adjusted net profit is expected to reach RMB40.1 billion in FY25, with a growth trajectory continuing into FY26 and FY27 [2][8]. - **Valuation Metrics**: NetEase is currently trading at a P/E ratio of 13.6x for FY25, which is in line with its two-year historical average [7][11]. Business Segment Analysis - **Online Games**: The online games segment is valued at US$121.8 billion, accounting for 89.2% of the total valuation, based on a multiple of 16x 2025E EV/EBIT, consistent with industry averages [11][12]. - **Youdao and Cloud Music**: Youdao is valued at US$0.7 billion, while the Cloud Music business is valued at US$3.8 billion, both based on industry-standard multiples [11][12]. - **Innovative Businesses**: The innovative businesses segment is valued at US$1.6 billion, reflecting a growing diversification strategy [11][12]. Market Position and Growth Drivers - The games business is expected to benefit from several highly anticipated global launches, including titles like MARVEL Mystic Mayhem and Destiny: Rising, which should further enhance revenue growth [7]. - Non-gaming segments are also improving efficiency, with a notable increase in gross profit margin for the Cloud Music segment despite a decline in revenue [7][8]. Share Performance - The market capitalization of NetEase stands at approximately US$67.99 billion, with a 52-week high of US$109.80 and a low of US$76.28 [3][4]. - Over the past month, the stock has seen an absolute increase of 9.3% [4].

Group 1: Company Performance - NetEase-S (09999) saw a significant increase of 10.89% in stock price after reporting Q1 2025 net revenue of RMB 28.8285 billion, a year-on-year increase of 7.4%, and gross profit of RMB 18.5 billion, up 8.6% [1] - H&H International Holdings (01112) rose over 8% as the market speculated on the ergotamine concept, with its Swisse brand showing strong performance in high-growth segments [2] - China Gold International (02099) experienced a stock price increase of over 5% after reporting a 351% rise in Q1 revenue to USD 273 million [2] Group 2: Clinical and Pharmaceutical Developments - Shandong Xinhua Pharmaceutical (00719) surged over 14% as COVID-19 infections showed an upward trend, with the company preparing for Phase II clinical trials of OAB-14 [1] - Innovent Biologics (01801) rose nearly 3% after announcing the completion of the first patient dosing in the Phase III clinical study of Ma Shidu peptide for obesity [1] - Kangxi Biologics (06185) increased over 3% after receiving approval from the Indonesian drug regulatory authority for its inhaled tuberculosis vaccine clinical trial [1] Group 3: Market Trends and Reactions - The Nasdaq Golden Dragon China Index fell over 2%, with notable declines in popular Chinese stocks such as Tiger Brokers (TIGR.US) down over 8% and Beike (BEKE.US) down over 5% [3] - UnitedHealth Group (UNH.US) experienced a significant drop of over 15% following reports of a U.S. Department of Justice investigation into potential insurance fraud [3] - Bitcoin-related stocks declined, with CleanSpark (CLSK.US) down nearly 6% and Coinbase (COIN.US) down over 7%, as Bitcoin itself fell over 1.5% [3]

Market Performance - The Hang Seng Index closed down by 0.81% [1] - The Hang Seng Tech Index decreased by 0.57% [1] Company Specific Movements - Genscript Biotech Corporation (歌礼制药-B) fell over 9% [1] - Alibaba (阿里巴巴) dropped more than 5% [1] - NetEase (网易-S) saw a significant increase, rising by 13% [1] - Fourth Paradigm (第四范式) experienced a rise of over 8% [1]

周五临近午盘，国家新闻出版署发布网络游戏管理办法征求意见稿，成为游戏板块甚至整个市场跳水的 导火索，最为直接的是游戏板块大跌10.83%，板块内超20只个股跌停；恒生科技指数大跌4.37%、网易 大跌24.6%、腾讯控股大跌12.35%。 周末，市场给予了诸多解读，有机构专家的、有相关上市公司的、也有权威部门的。当然，最为主要的 是事件的制造者国家新闻出版署：征求意见稿旨在促进行业繁荣健康发展，将认真研究，并将在继续听 取相关部门、企业、用户等各方意见的基础上进一步修改完善。 另外一则消息就比较官方了，周五晚间，证券时报评论：为上证指数正名。观点比较直接和明确，用一 系列的数据肯定了上证指数的长期增长速度，用上证指数和美国道指进行比较：上证33年的年化收益超 过10%，而道琼斯指数127年里的年化收益为5.5%，只有上证的一半。 这个周末，截至目前，市场只有两个消息，一个已经拖垮了大盘，一个延长了寿命。 看了全篇评论，有三点疑问？ 美国127年经历了什么？战争不下数十场，甚至包括一战、二战，而A股近30年，是发展的黄金周期， 经济地位已跃居世界第二。 用127年的长周期来评价股市的投资价值，敢问提出此观点的神 ...

Group 1 - The Hong Kong stock market experienced a decline, with the Hang Seng Index falling over 1% and the Hang Seng Tech Index decreasing by 0.84% [1] - NetEase (09999.HK) saw a significant increase, rising by 15% despite the overall market downturn [1]

Core Viewpoint - The company has effectively controlled costs, leading to an upward revision of Non-GAAP net profit forecasts for 2025 and 2026 by 6% to 36.8 billion and 38.2 billion CNY respectively, with a maintained outperform rating due to strong gaming business performance and a target price increase of 25% to 225 HKD and 145 USD [1][2]. Financial Performance - In Q1 2025, the company's revenue increased by 7% to 28.8 billion CNY, while Non-GAAP net profit rose by 32% to 11.2 billion CNY, exceeding both the firm's and market expectations [2][3]. - The strong performance was attributed to better-than-expected gaming revenue and significant cost savings, with a declared dividend of 0.675 USD per ADS, totaling 428 million USD for the quarter [2]. Revenue Drivers - Key self-developed games contributing to revenue growth included "Identity V," which reached a new quarterly revenue high, and "Marvel Duel," with a second season update planned for 2025 [3]. - The company reported a strong performance in multi-platform games, with a 85% year-on-year increase in PC revenue, and deferred revenue grew by 19% quarter-on-quarter [3]. Cost Management - Sales expenses decreased by 33% and management expenses by 20%, significantly below market expectations, attributed to improved internal governance and marketing efficiency [4]. - R&D expenses increased by 5%, aligning with expectations, as the company continues to invest in game development and AI technology [4]. Game Development and Global Strategy - The company is focusing on several in-development games, including "Marvel Secret Wars" and "Destiny: Rising," while also expanding the overseas distribution of existing titles [5]. - Notable upcoming releases include "Frostpunk" and "All-Star Streetball Party," with participation in the 2026 Nagoya Asian Games for titles like "Identity V" [5].

网易-S高开超10%，公司一季度净利润103.01亿元，同比增长34.94%。 ...

Group 1 - The Hang Seng Index opened down 0.87%, while the Tech Index fell by 0.95% [1] - Alibaba (09988.HK) dropped by 6.1% post-earnings announcement, with plans to distribute a dividend of $4.6 billion and a forecast indicating that profits may be impacted by investments in instant retail [1] - NetEase (09999.HK) saw an increase of 10.89%, with a year-on-year growth of 35% in net profit attributable to shareholders for the first quarter [1]

Group 1 - Xiaomi founder Lei Jun announced the self-developed mobile SoC chip named "Xuanjie O1," set to be officially released at the end of the month, marking a new milestone in Xiaomi's ten-year chip development journey [2] - Alibaba's Q4 FY2025 revenue reached 236.45 billion yuan, a year-on-year increase of 7%, with adjusted net profit of 29.85 billion yuan, up 22% [3] - Huawei officially announced the Harmony OS computer "Ultimate Design Master Edition," which is expected to feature a foldable design and a large foldable screen [4] Group 2 - Apple is expected to release the next generation of AirPods Pro, identified as AirPods Pro 3, this fall, following key code changes found in recent software updates [5] - JD.com announced that its food delivery service surpassed 20 million orders on May 14, and emphasized that it does not force merchants to choose a single delivery option [6] - NetEase reported Q1 FY2025 revenue of 28.8 billion yuan, a year-on-year increase of 7.4%, with net profit of 11.2 billion yuan [6] Group 3 - Geely Automobile reported Q1 FY2025 revenue of 72.5 billion yuan, a 25% year-on-year increase, with net profit soaring 264% to 5.67 billion yuan [7] - Vivo launched the "Blue Polar Star Plan" to recruit top talent in core technology fields, promising unlimited salary potential, but with high entry barriers [8] - Xingji Meizu denied rumors of discontinuing its mobile phone business, asserting that it has no plans to do so [9] Group 4 - SpaceX received FAA approval to increase its Starship launch missions from 5 to a maximum of 25 per year at its Boca Chica facility in Texas [10] - Motorola's smartphone shipments grew by 23% year-on-year in 2024, making it the seventh largest smartphone brand globally, with significant growth in Latin America and North America [11] - Container booking volumes for shipments from China to the U.S. surged nearly 300% following tariff reductions, with average bookings rising from 5,709 to 21,530 standard containers [13]