Financials NetEase, Inc. Thailand S.E.

Equities

NETEASE80

TH0150120606

Internet Services

End-of-day quote Thailand S.E. Other stock markets 06:00:00 2024-05-30 pm EDT			5-day change	1st Jan Change
6.55 ^THB	-2.24%		-2.24%	+5.65%

May. 28	Nomura Cuts NetEase's Price Target to $135 From $138, Maintains Buy Rating	MT
May. 27	Nomura Adjusts NetEase’s Price Target to HK$210 From HK$215, Keeps at Buy	MT

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	273,162	431,820	420,541	310,721	413,369	415,546	-	-
Enterprise Value (EV) ¹	214,794	357,855	353,039	247,963	310,752	287,752	268,692	250,592
P/E ratio	13.1 x	34.7 x	25.8 x	16.2 x	14.6 x	13.6 x	12.3 x	10.7 x
Yield	2.28%	0.81%	1.2%	1.91%	2.79%	2.48%	2.68%	2.86%
Capitalization / Revenue	4.61 x	5.86 x	4.8 x	3.22 x	4 x	3.68 x	3.37 x	3.11 x
EV / Revenue	3.63 x	4.86 x	4.03 x	2.57 x	3 x	2.55 x	2.18 x	1.88 x
EV / EBITDA	13.1 x	19.9 x	17.9 x	11 x	10.1 x	8.55 x	6.98 x	5.89 x
EV / FCF	13.4 x	15 x	16.2 x	9.89 x	9.41 x	8.33 x	7.37 x	6.1 x
FCF Yield	7.45%	6.66%	6.18%	10.1%	10.6%	12%	13.6%	16.4%
Price to Book	4.47 x	5.03 x	4.51 x	3.12 x	3.42 x	2.91 x	2.53 x	2.19 x
Nbr of stocks (in thousands)	639,804	691,023	650,472	620,272	625,194	644,494	-	-
Reference price ²	426.9	624.9	646.5	500.9	661.2	644.8	644.8	644.8
Announcement Date	2/26/20	2/25/21	2/24/22	2/23/23	2/29/24	-	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	59,241	73,667	87,606	96,496	103,468	112,810	123,459	133,492
EBITDA ¹	16,404	17,996	19,693	22,487	30,764	33,671	38,479	42,539
EBIT ¹	13,791	14,538	16,417	19,629	27,709	31,836	35,961	40,215
Operating Margin	23.28%	19.74%	18.74%	20.34%	26.78%	28.22%	29.13%	30.13%
Earnings before Tax (EBT) ¹	25,533	15,372	21,104	24,250	34,057	37,498	41,664	45,831
Net income ¹	21,238	12,063	16,857	20,338	29,417	30,786	33,991	37,243
Net margin	35.85%	16.37%	19.24%	21.08%	28.43%	27.29%	27.53%	27.9%
EPS ²	32.67	18.01	25.03	30.85	45.23	47.32	52.33	60.02
Free Cash Flow ¹	16,007	23,833	21,817	25,066	33,030	34,531	36,446	41,114
FCF margin	27.02%	32.35%	24.9%	25.98%	31.92%	30.61%	29.52%	30.8%
FCF Conversion (EBITDA)	97.58%	132.43%	110.79%	111.47%	107.36%	102.55%	94.72%	96.65%
FCF Conversion (Net income)	75.37%	197.57%	129.42%	123.25%	112.28%	112.17%	107.22%	110.39%
Dividend per Share ²	9.751	5.060	7.785	9.581	18.44	15.99	17.29	18.45
Announcement Date	2/26/20	2/25/21	2/24/22	2/23/23	2/29/24	-	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2021 Q3	2021 Q4	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4	2025 Q1
Net sales ¹	22,191	24,374	23,556	23,159	24,427	25,354	25,046	24,011	27,270	27,140	26,852	26,243	28,692	30,038	32,269
EBITDA ¹	4,581	5,444	6,273	5,555	5,456	5,203	8,302	6,724	8,210	7,528	8,190	6,908	8,127	8,892	8,688
EBIT ¹	3,775	4,608	5,507	4,946	4,742	4,433	7,220	6,063	7,558	6,868	7,622	7,540	8,203	8,411	-
Operating Margin	17.01%	18.91%	23.38%	21.36%	19.41%	17.49%	28.83%	25.25%	27.71%	25.31%	28.39%	28.73%	28.59%	28%	-
Earnings before Tax (EBT) ¹	4,131	6,597	5,535	5,731	8,208	4,776	8,339	8,872	9,101	7,745	9,288	8,748	9,523	9,975	10,101
Net income ¹	3,182	5,694	4,394	5,291	6,699	3,953	6,755	8,243	7,837	6,582	7,634	7,155	7,566	8,011	-
Net margin	14.34%	23.36%	18.65%	22.85%	27.43%	15.59%	26.97%	34.33%	28.74%	24.25%	28.43%	27.26%	26.37%	26.67%	-
EPS ²	4.730	8.570	6.630	8.000	10.17	6.050	10.37	12.69	12.06	10.12	11.75	10.91	11.99	12.59	-
Dividend per Share ²	1.438	2.563	2.142	2.443	3.113	1.865	3.290	3.820	3.585	7.764	3.585	3.937	4.141	4.306	4.393
Announcement Date	11/16/21	2/24/22	5/24/22	8/18/22	11/17/22	2/23/23	5/25/23	8/24/23	11/16/23	2/29/24	5/23/24	-	-	-	-

¹CNY in Million²CNY

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	-	-	-	-	-	-	-	-
Net Cash position ¹	58,368	73,965	67,502	62,758	102,617	127,794	146,855	164,954
Leverage (Debt/EBITDA)	-	-	-	-	-	-	-	-
Free Cash Flow ¹	16,007	23,833	21,817	25,066	33,030	34,531	36,446	41,114
ROE (net income / shareholders' equity)	29.4%	20.5%	19%	20.3%	25.7%	23.9%	22.4%	21%
ROA (Net income/ Total Assets)	15.7%	11.6%	11.4%	12.5%	16.4%	16.1%	15.5%	15.1%
Assets ¹	134,978	104,172	147,759	163,203	179,343	191,425	218,888	245,838
Book Value Per Share ²	95.40	124.0	143.0	160.0	193.0	222.0	255.0	295.0
Cash Flow per Share ²	26.50	37.10	7.400	42.00	54.30	70.00	66.40	68.00
Capex ¹	1,209	1,056	3,038	2,602	4,266	2,973	3,279	3,287
Capex / Sales	2.04%	1.43%	3.47%	2.7%	4.12%	2.64%	2.66%	2.46%
Announcement Date	2/26/20	2/25/21	2/24/22	2/23/23	2/29/24	-	-	-

¹CNY in Million²CNY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for NetEase, Inc.

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

644.8 CNY

Average target price

939.2 CNY

Spread / Average Target

+45.66%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

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