NTES – Market expectations are for collapsing Uniform ROA, but management’s confidence about product innovation and global market opportunities implies this may be unwarranted
January 14, 2019
- NetEase, Inc. (NTES:USA) currently trades below averages relative to UAFRS-based (Uniform) Assets with a 5.5x Uniform P/B, implying bearish expectations for the firm. However, management is confident about new product innovation and global market dynamics
- Specifically, management is confident about their competitive advantages in video game innovation and their expertise in demand trends across local geographies. Additionally, they are confident in their ability to avoid issues associated with Chinese anti-addiction regulations
