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NetEase Inc Ordinary Shares 09999

Morningstar Rating
HKD 140.20 −3.80 (2.64%)
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Company Report

Huawei's Potential Fee Shakeup Could Be a Win for Game Developers

There have long been complaints that app stores take too big a share of in-app purchases, but nothing has managed to shake the 30% take-rate standard over the past decade. However, Bloomberg’s recent report on Huawei's talks with Tencent to establish a lower-than-industry share of 20% for in-game purchases provides hope for a reset. This move also reinforces our call for higher profitability for gaming companies over the long run. Although the Huawei HarmonyOS mobile operating system currently represents a small percentage of smartphones in China, the potential lowering of its app store fee to 20% could pressure other mobile app platforms to follow suit.

Price vs Fair Value

09999 is trading at a 695% premium.
Price
HKD 140.20
Fair Value
HKD 754.00
Uncertainty
High
1-Star Price
HKD 649.90
5-Star Price
HKD 679.60
Economic Moat
Stzgdr
Capital Allocation
Sjcynbld

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.

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News

Trading Information

Previous Close Price
HKD 144.00
Day Range
HKD 140.00143.30
52-Week Range
HKD 116.10185.70
Bid/Ask
HKD 140.10 / HKD 140.20
Market Cap
HKD 451.79 Bil
Volume/Avg
9.0 Mil / 7.0 Mil

Key Statistics

Price/Earnings (Normalized)
12.66
Price/Sales
3.96
Dividend Yield (Trailing)
2.89%
Dividend Yield (Forward)
2.89%
Total Yield
3.95%

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
00700
TTWO
Price/Earnings (Normalized)
12.6620.8186.86
Price/Book Value
3.233.844.77
Price/Sales
3.965.445.03
Price/Cash Flow
11.7617.3230.90
Price/Earnings
09999
00700
TTWO

Financial Strength

Metric
09999
00700
TTWO
Quick Ratio
2.371.300.64
Current Ratio
2.531.470.94
Interest Coverage
13.41−25.80
Quick Ratio
09999
00700
TTWO

Profitability

Metric
09999
00700
TTWO
Return on Assets (Normalized)
14.59%10.08%−6.65%
Return on Equity (Normalized)
22.05%20.37%−12.07%
Return on Invested Capital (Normalized)
15.46%12.97%−7.92%
Return on Assets
09999
00700
TTWO
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Electronic Gaming & Multimedia Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Nintendo Co Ltd
NTDOF
Qxft$62.1 Bil
Nintendo Co Ltd ADR
NTDOY
Vtmkf$62.1 Bil
NetEase Inc Ordinary Shares
NETTF
Prsmlk$57.9 Bil
NetEase Inc ADR
NTES
DgjkhysybCbmrmcl$57.9 Bil
Electronic Arts Inc
EA
RrtqlqjdqHdnntkq$37.0 Bil
Take-Two Interactive Software Inc
TTWO
ZhrjffkpTrlqjv$27.7 Bil
Roblox Corp Ordinary Shares - Class A
RBLX
PsrgynmjmwDgrgrp$23.1 Bil
NEXON Co Ltd
NEXOF
Dlbm$15.2 Bil
NEXON Co Ltd ADR
NEXOY
Dbylv$15.2 Bil
Bilibili Inc ADR
BILI
DpbdbznMkdqs$7.2 Bil

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