T. H. Data Flash - NetEase, Inc. – December & 4Q19: Finalized Streamlining Its Businesses; Focusing On Core Business May Lead To Better Margin; Maintain Buy And Raise Price Target
While China is experiencing an outbreak of the coronavirus, which is going to have significant impact on China’s economy, we are positive on NTES’s business outlook. One thing that came out of the outbreak is that the internet has become a mainstream channel for many businesses, including online education and remote telecommuting. For NTES, its online games and online education are benefiting from the nationwide self-confinement and delayed school opening schedules. We are positive on NTES’s 4Q performance.