Financials NetEase, Inc. Sao Paulo

Equities

NETE34

BRNETEBDR006

Internet Services

Delayed Sao Paulo Other stock markets 11:50:42 2024-06-17 am EDT			5-day change	1st Jan Change
50 ^BRL	+0.79%		-0.89%	+15.10%

Jun. 13	Barclays Initiates NetEase at Equalweight With $104 Price Target	MT
Jun. 03	ByteDance Hires Perfect World's COO to Head Studios, Technical Departments	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	432,740	-	-
Enterprise Value (EV) ¹	214,794	357,855	353,039	247,963	310,752	304,958	285,803	267,663
P/E ratio	13.1 x	34.7 x	25.8 x	16.2 x	14.6 x	14.2 x	12.8 x	11.2 x
Yield	2.28%	0.81%	1.2%	1.91%	2.79%	2.35%	2.54%	2.69%
Capitalization / Revenue	4.61 x	5.86 x	4.8 x	3.22 x	4 x	3.84 x	3.5 x	3.24 x
EV / Revenue	3.63 x	4.86 x	4.03 x	2.57 x	3 x	2.7 x	2.31 x	2 x
EV / EBITDA	13.1 x	19.9 x	17.9 x	11 x	10.1 x	9.05 x	7.43 x	6.3 x
EV / FCF	13.4 x	15 x	16.2 x	9.89 x	9.41 x	8.83 x	7.84 x	6.51 x
FCF Yield	7.45%	6.66%	6.18%	10.1%	10.6%	11.3%	12.8%	15.4%
Price to Book	4.47 x	5.03 x	4.51 x	3.12 x	3.42 x	3.03 x	2.64 x	2.28 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	671.4	671.4	671.4
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	112,825	123,524	133,593
EBITDA ¹	16,404	17,996	19,693	22,487	30,764	33,703	38,465	42,512
EBIT ¹	13,791	14,538	16,417	19,629	27,709	31,765	35,871	39,966
Operating Margin	23.28%	19.74%	18.74%	20.34%	26.78%	28.15%	29.04%	29.92%
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	30,795	34,017	37,288
Net margin	35.85%	16.37%	19.24%	21.08%	28.43%	27.29%	27.54%	27.91%
EPS ²	32.67	18.01	25.03	30.85	45.23	47.34	52.40	60.12
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%	29.51%	30.78%
FCF Conversion (EBITDA)	97.58%	132.43%	110.79%	111.47%	107.36%	102.46%	94.75%	96.71%
FCF Conversion (Net income)	75.37%	197.57%	129.42%	123.25%	112.28%	112.13%	107.14%	110.26%
Dividend per Share ²	9.751	5.060	7.785	9.581	18.44	15.77	17.03	18.05
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	26,229	28,789	30,136	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	7,580	8,180	8,343	-
Operating Margin	17.01%	18.91%	23.38%	21.36%	19.41%	17.49%	28.83%	25.25%	27.71%	25.31%	28.39%	28.9%	28.41%	27.68%	-
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	7,585	8,041	-
Net margin	14.34%	23.36%	18.65%	22.85%	27.43%	15.59%	26.97%	34.33%	28.74%	24.25%	28.43%	27.28%	26.35%	26.68%	-
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	12.02	12.63	-
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	3.949	4.153	4.317	4.436
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	127,783	146,937	165,078
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%	23.8%	22.3%	20.8%
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	191,510	219,077	246,163
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%	2.65%	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

671.4 CNY

Average target price

931 CNY

Spread / Average Target

+38.66%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

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