NetEase: 25% Upside In Sight
Mon, Oct. 3, 6:38 PM
- China gaming giant NetEase (NTES +1.7%) has acknowledged its wholly owned NetEase Media unit confidentially submitted a draft registration statement for a possible initial public offering to the SEC.
- NetEase Media, which runs the company's Internet media business, submitted a Form F-1 for the possible IPO, though shares and dollar total have yet to be determined.
- "The proposed IPO is expected to commence after the SEC completes its review process, subject to market and other conditions," NetEase says in a statement.
- NetEase ADRs are up 35% YTD.
Tue, Sep. 27, 12:35 PM
- NetEase (NASDAQ:NTES) is up 1.2% today after renewing its licensing agreement in China with Blizzard Entertainment (ATVI +0.1%).
- The deal -- a lucrative partnership that covers games including World of Warcraft, StarCraft II, Diablo III, Hearthstone, Heroes of the Storm and Overwatch -- is extended to January 2020 and currently heads into its ninth year.
- During the deal, the companies attained the goal of launching Blizzard's games in China simultaneous with other regions.
Tue, Sep. 13, 5:20 PM
- NetEase (NTES +0.5%) gave back strong morning gains after another high-volume day, but tagged a 52-week high for the second day in a row after word that it will focus on online gaming by unloading its news operations.
- Shares closed at $231.27 after hitting $240.47, and are up 96.9% over the past 12 months.
- The company could raise $300M from dropping news, either through a sale or a possible U.S. IPO -- but a move to clear the business is already in planning stages, Bloomberg reported.
- NetEase lags only Tencent as an online destination in China, with more than 10.3B page views in July. But gaming is easily its largest business, and more of that market is headed to smartphones.
Mon, Aug. 29, 8:13 AM
- NetEase (NASDAQ:NTES) had declared $0.78/share quarterly dividend, 6.8% increase from prior dividend of $0.73.
- Forward yield 1.43%
- Payable Sept. 9; for shareholders of record Aug. 31; ex-div Aug. 29.
Fri, Aug. 19, 5:47 PM
- NetEase (NASDAQ:NTES) finished up 1% today, rebounding from a post-earnings drop of 2.7% yesterday.
- Credit Suisse has set coverage of the game maker with a Neutral rating after previously rating an Outperform, and has a higher price target: from $200 to $230, implying 9.7% upside from today's close.
- Aside from the licensing win of distributing Overwatch, analysts credited 7% sequential growth in game revenue with the solid overall results. "Looking ahead, new game launches/ramping up and expansion packs should help sustain online game revenue growth, albeit at a milder pace, and scale improvement of Kaola.com (eCommerce platform launched in 2015) should help lift margin. Medium term, management is exploring AR/VR technology potential."
- Shares are up 15.7% YTD and have gained 66.4% over the past 12 months.
Thu, Aug. 18, 1:24 AM
Wed, Aug. 17, 7:32 PM
- NetEase (NASDAQ:NTES) is up 1.4% after hours as it nearly doubled revenues and easily beat on top and bottom lines in its Q2 earnings report.
- It posted non-GAAP EPS of $3.67 on a diluted basis, up from the previous quarter's $3.03 and the prior year's $1.81. Net revenues of $1.347B surpassed expectations for $1.27B.
- Revenue breakout: Online games, $968.8M (up 76%); Advertising services, $79.9M (up 24.2%); E-mail, e-commerce and others, $298.4M (up 310.6%).
- Gross profit margin for online games was 66.2%, down slightly from Q1's 67.1% and the prior year's 69.3% due to a higher revenue contribution from lower margin mobile games. Gross margin for ad serves was 65.5%; and it was 33.8% for e-mail, e-commerce and other revenues.
- Cash and equivalents came to $4.5B at quarter's end. Cash flow from operations was $494.6M.
- Conference call to come at 9 p.m. ET.
- Press release
Tue, Aug. 16, 5:35 PM
Tue, Aug. 2, 1:17 PM
- July monthly performance was: +4.77%
- 52-week performance vs. the S&P 500 is: -8%
- No dividends were paid in July
- Top 10 Holdings as of 6/30/2016: Tencent Holdings Ltd. (OTCPK:TCTZF): 8.99243%, Ping An Insurance (Group) Co. of China Ltd H (OTCPK:PIAIF): 8.32846%, Alibaba Group Holding Ltd ADR (BABA): 8.29751%, Baidu Inc ADR (BIDU): 8.09289%, JD.com Inc ADR (JD): 7.18603%, Ctrip.com International Ltd ADR (CTRP): 5.75736%, NetEase Inc ADR (NTES): 3.16258%, China Minsheng Banking Corp Ltd H (OTCPK:CGMBF): 2.61595%, Hengan International Group Co Ltd (OTCPK:HEGIF): 2.59126%, New Oriental Education & Technology Group Inc ADR (EDU): 2.16007%
Mon, Jul. 25, 4:41 AM
- China's top internet regulator has ordered major online companies including Sina Corp. (NASDAQ:SINA) Tencent (OTCPK:TCEHY), Sohu.com (NASDAQ:SOHU) and NetEase (NASDAQ:NTES) to stop original news reporting, tightening its grip over the country's web and information industries.
- President Xi Jinping has stressed that Chinese media must serve the interests of the ruling Communist Party, giving authorities near-absolute control over online news and political discourse.
Fri, Jul. 1, 8:25 AM
- June monthly performance was: -1.59%
- 52-week performance vs. the S&P 500 is: -20%
- $0.21 in dividends were paid in June
- Top 10 Holdings as of 5/31/2016: Tencent Holdings Ltd. (OTCPK:TCTZF): 8.58481%, Baidu Inc ADR (BIDU): 8.46586%, Ping An Insurance (Group) Co. of China Ltd H (OTCPK:PIAIF): 8.40212%, Alibaba Group Holding Ltd ADR (BABA): 8.39867%, JD.com Inc ADR (JD): 8.17121%, Ctrip.com International Ltd ADR (CTRP): 6.09856%, NetEase Inc ADR (NTES): 2.85051%, Hengan International Group Co Ltd (OTCPK:HEGIF): 2.72358%, China Minsheng Banking Corp Ltd H (OTCPK:CGMBF): 2.32601%, New Oriental Education & Technology Group Inc ADR (EDU): 2.11677%
Thu, Jun. 2, 8:44 AM
- May monthly performance was: -2.75%
- 52-week performance vs. the S&P 500 is: -26%
- No dividends were paid in May
- Top 10 Holdings as of 4/29/2016: Baidu Inc ADR (BIDU): 9.11%, Ping An Insurance (Group) Co. of China Ltd H (OTCPK:PIAIF): 8.79%, JD.com Inc ADR (JD): 8.39%, Tencent Holdings Ltd. (OTCPK:TCTZF): 7.8%, Alibaba Group Holding Ltd ADR (BABA): 7.79%, Ctrip.com International Ltd ADR (CTRP): 5.75%, Hengan International Group Co Ltd (OTCPK:HEGIF): 2.69%, China Minsheng Banking Corp Ltd H (OTCPK:CGMBF): 2.3%, NetEase Inc ADR (NTES): 2.23%, WH Group Ltd (OTC:WHGRF): 2.13%
Mon, May 23, 7:56 PM
- Fresh off earnings that showcased the strength of its mobile games lineup, China's NetEase (NASDAQ:NTES) unveiled a substantial development slate of 41 games at its second annual "Game Enthusiasts' Day" in Guangzhou.
- Those include new entries in its flagship mobile franchise -- Fantasy Westward Journey: Warriors, and Westward Journey: Rage. It's also stretching legacy PC-game successes into the mobile word, including MMORPG Tianxia III, fighting game Datang and MMO game Demon Seals.
- Meanwhile, the company's also coming off a weekend deal with Microsoft (NASDAQ:MSFT) to bring addictive sandbox success Minecraft to China, after a usual lengthy struggle with trade regulations. It announced a five-year exclusive deal with Microsoft and Mojang to license mobile and PC editions of the game to an affiliate in mainland China, including a version tailored for the Chinese market.
- Now read China's Woes Create Opportunities For New NetEase Investors »
Thu, May 12, 12:13 AM
Wed, May 11, 8:29 PM
- Game maker NetEase (NASDAQ:NTES) put in a mixed Q1 report as revenues fell short of expectations, despite doubling on the strength of mobile games.
- Fantasy Westward Journey and Westward Journey Online continued strong showings in China's iOS app store, supplemented by additions Kung Fu Panda 3 and The X-World.
- Net income afer tax came to $3.09/share, beating an expected $2.47/share.
- Gross profit came to 4.59B yuan ($711.3M), up 84.3%. Gross profit margin on online games fell to 67.1% from a year-ago 73.1%; on the ad services business, it rose to 62.4% from 59.2%, and on e-mail, e-commerce and others, 20.4% vs. a year-ago 38.9%.
- Revenue by segment: Online game services, 6.02B yuan ($932.9M, up 104.5%); Advertising service, 393.2M yuan ($60.98M, up 32%); E-mail, e-commerce and others, 1.51B yuan ($233.7M, up 257.8%).
- Cash and equivalents and various short-term investments came to 28.4B yuan (about $4.4B); cash flow from operations was 3.1B yuan (about $479.6M).
- Conference call coming up at 9 p.m. ET.
- Press release
Tue, May 10, 5:35 PM