Date: 26 September 2024
Broker: UOB Kay Hian (Hong Kong) Limited

1. Company Overview

NetEase, Inc. (stock code: 9999 HK) is one of China’s leading internet technology companies, known primarily for its robust gaming business as well as a growing presence in online education and other content-related services.

2. Financial Performance (1Q24)

In the first quarter of 2024 (1Q24), NetEase delivered strong financial results:

• Revenue: RMB 26.85 billion, marking a 7.2% year-on-year growth.
• Net Profit: RMB 7.80 billion, representing a 16.3% year-on-year increase.
• Dividend: The company declared an interim dividend of US$0.099 per share.

3. Stock Price & Technical Performance

• Trading Range: The recommended trading buy range for NetEase is HK$134.00-HK$135.00.
• Last Price: As of the report, the last price of the stock was HK$133.10.
• Target Prices: NetEase has target prices of HK$143.00 and HK$151.00.
• Protective Stop: A protective stop is set at HK$128.00.

4. Technical Analysis

NetEase’s stock price has seen a solid rebound after reaching a low of HK$117.00 in mid-September. Recent trading performance highlights include:

• Moving Averages: The stock has stabilized above its 10-day and 20-day moving averages, indicating near-term strength.
• MACD Indicator: The fast line of the MACD (Moving Average Convergence Divergence) has crossed above the slow line, signaling a potential bullish trend. If both lines rise into the bullish zone above zero, it would confirm a double bullish signal.
• Market Outlook: Investors may consider buying near the 50-day moving average as the stock is expected to fill the downside gap formed in late August.

5. Investment Outlook

NetEase presents a buying opportunity with strong financial performance and positive technical indicators. The stock is expected to perform well in the coming weeks as it approaches its target price range.