Core Viewpoint - NetEase, Inc. will report its financial results for the fourth quarter and fiscal year 2024 on February 20, 2025, before the U.S. markets open [1] Group 1: Financial Reporting - The earnings teleconference call will occur at 7:00 a.m. Eastern Time on February 20, 2025, with management discussing quarterly results and answering questions [2] - Interested parties can participate in the conference call by dialing 1-914-202-3258 and providing conference ID: 10044895, 15 minutes prior to the call [3] - A replay of the call will be available until February 27, 2025, and will also be webcast live for 12 months on NetEase's Investor Relations website [3] Group 2: Company Overview - NetEase, Inc. is a leading internet and game services provider focused on premium content, with a strong presence in both mobile and PC gaming [4] - The company boasts one of the largest in-house game R&D teams, creating superior gaming experiences and delivering value to its global community [5] - Beyond gaming, NetEase's offerings include Youdao, an intelligent learning company, NetEase Cloud Music, an online music platform, and Yanxuan, a private label consumer lifestyle brand [6]

上汽、吉利、比亚迪向欧盟法院提起诉讼，反对加征反补贴关税。 上汽集团、吉利控股和比亚迪就欧盟对中国电动汽车加征反补贴税一事，向欧盟普通法院提起诉讼。 此次诉讼是因为 2024 年 10 月底欧盟对中国制造的电动汽车加征反补贴关税，为期五年。比亚迪被加征 17% 关税，吉利为 18.8%，上汽集团最高为 35.3%。欧盟认为中国企业通过政府补贴压低出口价格，导 致不公平竞争。 上汽集团对此裁决表示强烈不满，认为调查过程中存在信息遗漏和认定错误。令中国车企感到不满的还 有对特斯拉中国的单独审查，这让特斯拉中国获得最低的额外关税，仅被加征 7.8%。 上汽是受欧盟反补贴关税影响最大的厂商，2024 年全年上汽集团海外销售汽车 108.2 万辆，根据欧洲汽 车制造商协会 ACEA 数据，上汽去年在欧洲市场的销量达 24.5 万辆，是欧盟地区销量最好的中国车 企。 并且，上汽也有持续进军欧洲市场的计划，集团旗下的智己汽车联席 CEO 刘涛在去年 2 月的媒体沟通 会上表示，2025 年，智己 LS6、L6 两款产品在欧洲等市场进行布局。 迷因币是加密货币的一种，受网络潮流、热梗启发而生，任何人都可以发行，多数只是个玩笑 ...

Investment Rating - The report maintains a "Buy" rating for the company, with a target price raised to $124.00, indicating a potential upside of 24.9% from the current price of $99.31 [2][3][4]. Core Insights - The company is expected to see accelerated growth in PC games and stable performance in mobile games, leading to a double-digit growth in overall gaming revenue for the year [3][8]. - Revenue and profit forecasts for 2025 have been adjusted upwards by 1% and 3% respectively, reflecting better-than-expected performance from new game releases [3][8]. - The anticipated growth in PC games is driven by new titles such as "Marvel's Contest of Champions," which is expected to contribute significantly to revenue [8][9]. Financial Forecasts - The updated revenue projections for 2024E and 2025E are RMB 106,289 million and RMB 116,667 million, respectively, reflecting growth rates of 2.7% and 9.8% [7][9]. - The adjusted net profit for 2025 is projected to be RMB 35,081 million, with a net profit margin of 30.1% [7][9]. - The report highlights a significant increase in the number of players for new games, with "Marvel's Contest of Champions" reaching over 20 million players shortly after launch [8][9]. Market Performance - The company's stock has shown a year-to-date increase of 11.32%, with a 52-week high of $113.14 and a low of $76.28 [6][9]. - The average daily trading volume is reported at 1.91 million shares, indicating active market participation [6][9]. Valuation Metrics - The target price is based on a 17x price-to-earnings ratio for 2025, with an expected adjusted operating profit growth rate of 17% [3][9]. - The report indicates a projected gross profit margin of 62.4% for 2024E, slightly decreasing to 61.4% in 2025E [7][9].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 180.0, while the current price is HKD 153.8 [4]. Core Insights - The performance of new games such as "Marvel Showdown" and the recovery of "Yanyun Sixteen Sounds" are expected to drive the company's stock price higher. "Marvel Showdown" has shown strong user engagement and sales, with an estimated first-month revenue of RMB 400 million on Steam and a global first-month total revenue expected to reach RMB 1 billion [1][2]. - The company has adjusted its profit forecasts for 2024-2026, increasing the expected net profit to RMB 317.9 billion, RMB 355.0 billion, and RMB 383.0 billion respectively, reflecting a growth of 1.6%, 6.1%, and 7.9% compared to previous estimates [2]. Summary by Sections Game Performance - "Marvel Showdown" has achieved significant online player engagement, reaching 450,000 concurrent users on Steam and ranking high on various sales charts across platforms [1][7]. - "Yanyun Sixteen Sounds" has successfully launched on mobile, topping the iPhone role-playing game download charts and surpassing 10 million players within five days of its release [1]. - "Infinite" has received positive feedback from its closed beta testing, showcasing a variety of gameplay features and potential for expansion in the two-dimensional game market [1]. Financial Projections - The company’s revenue is projected to grow from RMB 96.5 billion in 2023 to RMB 125.0 billion by 2026, with a compound annual growth rate of approximately 7.2% [3][11]. - The Non-GAAP net profit is expected to increase from RMB 31.8 billion in 2024 to RMB 38.3 billion in 2026, indicating a steady growth trajectory [3][11]. Market Position - The report highlights the company's strong position in the gaming industry, with a focus on high-quality game production and successful IP utilization, which is expected to enhance long-term market confidence [1][2].

Company Overview - NetEase (NTES) shares increased by 8.2% to close at $103.92, with trading volume significantly higher than usual, compared to a 2.6% gain over the past four weeks [1] Technological Advancements - The optimism surrounding NetEase is largely due to its commitment to technological advancements, particularly in AI-driven subscription services, which have enhanced functionality and user appeal [2] Earnings Expectations - NetEase is expected to report quarterly earnings of $1.76 per share, reflecting a year-over-year increase of 10%, while revenues are projected to be $3.76 billion, a decrease of 1.6% from the previous year [3] Earnings Estimate Revisions - The consensus EPS estimate for NetEase has been revised down by 4.5% over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] Industry Context - NetEase belongs to the Zacks Internet - Software and Services industry, where another company, RingCentral (RNG), has seen a 2% increase in its stock price, but has returned -16.4% over the past month [4]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 163, indicating a potential upside of 20.2% from the current price of HKD 137.5 [1][5][11] Core Insights - The company's third-quarter performance has reached a bottom, and the launch of new games is expected to reverse the trend. Revenue for Q3 2024 was CNY 26.21 billion, a decline of 3.9% year-over-year, with net profit attributable to shareholders at CNY 6.5 billion, down 16.7% from the previous year [3][8] - The gaming segment showed resilience, with game revenue at CNY 20.2 billion, a quarter-over-quarter increase of 5%, and a year-over-year increase of 29% for PC games [3][8] - The company has a rich pipeline of new games, including "Yanyun Sixteen Sounds," which achieved 3 million downloads within five days of its PC launch, and several other titles expected to launch in 2025 [4][9] Financial Projections - Revenue projections for 2024-2026 are CNY 105.9 billion, CNY 112.4 billion, and CNY 119.4 billion, with year-over-year growth rates of 2.41%, 6.10%, and 6.20% respectively. Net profits are expected to be CNY 26.7 billion, CNY 30.7 billion, and CNY 36.3 billion for the same period [5][11] - The report employs a segmented valuation approach, assigning a PE ratio of 15x for the gaming business and 5x PS for other segments, leading to a target PE of 16x for 2025 [5][11] Business Segment Performance - NetEase Youdao reported revenue of CNY 1.6 billion in Q3 2024, a year-over-year increase of 2.2%, marking its first profitable third quarter [3][10] - NetEase Cloud Music generated revenue of CNY 2 billion, up 1.3% year-over-year, with a significant increase in subscription revenue contributing to overall growth [10]

Investment Rating - The investment rating for the company is "Buy" (maintained) [6]. Core Insights - The company has received approval for its self-developed game "Infinite" across mobile, client, and console platforms, alongside other titles such as "Top Pursuit" and "Legion War" [9]. - "Infinite" is characterized as a high-freedom, open-world RPG set in a two-dimensional urban environment, featuring diverse activities and modes that enhance user engagement and social interaction [9]. - The global pre-registration for "Infinite" has exceeded 8 million, indicating strong market interest and potential revenue growth post-launch [9]. - The company is also set to launch its martial arts open-world game "Yanyun Sixteen Sounds" for PC on December 27 [9]. Financial Summary - Current stock price is HKD 140.20, with a market capitalization of HKD 4,668.05 billion and a circulating market value of HKD 4,517.90 billion [6]. - The company’s projected financial performance includes revenue growth from HKD 103,468 million in 2023 to HKD 107,781 million in 2024, with a net profit forecast of HKD 29,290 million for 2024 [26]. - The expected EPS for 2024 is HKD 9.1, with a corresponding P/E ratio of 14.5 [26].

Core Viewpoint - NetEase (NTES) has demonstrated strong performance in the gaming and Internet services sector, achieving a 6.6% increase in stock value over the past month, surpassing the industry average of 5.9% and outperforming peers like Red Violet, Criteo, and Globant [1][2]. Group 1: Financial Performance - The strong momentum in online gaming services and significant revenue growth in Q3 2024 contributed to NetEase's outperformance [2]. - In Q3 2024, net revenues from online games constituted approximately 96.8% of the segment's total net revenues, an increase from 96.1% in Q2 and 93.7% year-over-year [3]. - Mobile games accounted for about 70.8% of net revenues from online game operations in Q3 2024, down from 76.4% in Q3 2023 and 77.6% in Q2 2024 [3]. Group 2: Gaming Division Highlights - NetEase's gaming division is thriving, with popular titles experiencing impressive growth; PC games saw net revenues increase by approximately 29% year-over-year and 30% quarter-over-quarter [5]. - Legacy franchises like Fantasy Westward Journey and Westward Journey Online continue to attract players, with a new chapter introduced in Fantasy Westward Journey Mobile [6]. - NARAKA: BLADEPOINT celebrated its third anniversary, enhancing player engagement through new updates [7]. - Justice Mobile is redefining traditional MMOs with innovative features, including AI-driven NPCs and user-generated AI companies [8]. Group 3: Technological Innovations - NetEase is committed to technological advancements, with significant strides in AI-driven subscription services and tools that enhance user engagement [13][15]. - The AI model Ziyue achieved over 4 million users in its debut quarter, setting a new industry standard [11]. - Youdao Literature has launched AI-powered writing enhancement tools, leading to increased user engagement [12]. Group 4: International Expansion and Future Prospects - NetEase is expanding its international gaming footprint, with Justice Mobile set to launch in Hong Kong, Macau, and Taiwan, and Dunk City Dynasty on track for a global release [14]. - The company is intensifying its game pipeline with plans to unveil several highly anticipated titles in the coming months [14].

OpenAI 要研发人形机器人。 媒体援引两位知情人士消息，OpenAI 考虑开发一款人形机器人。在此之前，OpenAI 已经投资 Figure、1X 两家人形机器人公司和研发机器人模型的 Physical Intelligence，并重新组建了四年前解 散的机器人软件团队。 OpenAI 正借助 ChatGPT 带来的势能扩大业务范围，从搜索到浏览器再到研发 AI 芯片等，并与客 户、合作伙伴以及投资的公司竞争。 人造物体离太阳又近了一些。 NASA 宣布，帕克太阳探测器（Parker Solar Probe）正在刷新历史纪录，12 月 24 日以 69 万公里的 时速（不到 10 秒就能从北京到深圳），飞过距离太阳表面 610 万公里的近日点。 帕克太阳探测器于 2018 年发射升空，两个月后就刷新了人造物体距离太阳最近的纪录，并在 2021 年飞越日冕。现在还不能确定这次任务是否成功，因为距离太远，帕克太阳探测器返回的信号最快 也得 12 月 27 日抵达地球。 网易新园区入驻上海青浦。 据界面新闻，继华为之后，网易位于上海青浦的园区也即将启用，届时将有约 2 万名员工迁入办 公。新园区总建筑面积 62 ...

Core Insights - The articles emphasize the importance of maintaining a public track record of successful investment ideas and encourage discussions among readers [1][2] - The author has a director-level position in Accounting/Finance and has been investing for five years, achieving a cumulative return of +20% CAGR with a focus on low-risk investments [1] - The investment strategy involves generating alpha through a limited number of well-researched ideas, highlighting the significance of discipline and patience in investing [1] Company and Industry Summary - The author expresses a beneficial long position in NTES shares, indicating a personal investment interest in the company [3] - The articles clarify that no financial advice is provided, and the views expressed may not reflect those of Seeking Alpha as a whole, emphasizing the independent nature of the analysis [4]