NetEase, Inc.'s (HKG:9999) 26% Share Price Surge Not Quite Adding Up

Simply Wall St.12-10

NetEase, Inc. (HKG:9999) shareholders have had their patience rewarded with a 26% share price jump in the last month. But the gains over the last month weren't enough to make shareholders whole, as...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2490803997?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/company-cover/416512-main-header/1585188392101","is_english":true,"pubTime":"2024-12-10 06:08","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2490803997","market":"nz","top_or_hot":-1,"title":"NetEase, Inc.'s (HKG:9999) 26% Share Price Surge Not Quite Adding Up","media":"Simply Wall St.","content":"<div>\n<p>NetEase, Inc. (HKG:9999) shareholders have had their patience rewarded with a 26% share price jump in the last month.    But the gains over the last month weren't enough to make shareholders whole, as...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/media/hkg-9999/netease-shares/news/netease-incs-hkg9999-26-share-price-surge-not-quite-adding-u\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>NetEase, Inc.'s (HKG:9999) 26% Share Price Surge Not Quite Adding Up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetEase, Inc.'s (HKG:9999) 26% Share Price Surge Not Quite Adding Up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-10 06:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/media/hkg-9999/netease-shares/news/netease-incs-hkg9999-26-share-price-surge-not-quite-adding-u><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>NetEase, Inc. (HKG:9999) shareholders have had their patience rewarded with a 26% share price jump in the last month.    But the gains over the last month weren't enough to make shareholders whole, as...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/media/hkg-9999/netease-shares/news/netease-incs-hkg9999-26-share-price-surge-not-quite-adding-u\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00B031HY20.USD","symbol_name":"FSSA CHINA GROWTH \"I\" (USD) INC","start_time":0,"source_url":"https://simplywall.st/stocks/hk/media/hkg-9999/netease-shares/news/netease-incs-hkg9999-26-share-price-surge-not-quite-adding-u","article_id":"2490803997","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/416512-main-header/1585188392101"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2490803997","pubTimestamp":1733782106,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"NetEase, Inc. ( HKG:9999 ) shareholders have had their patience rewarded with a 26% share price jump in the last month...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00B031HY20.USD":"FSSA CHINA GROWTH \"I\" (USD) INC","LU1226287875.USD":"UBS (LUX) KEY SEL S-CHINA ALLOCATION OPP \"PM\" (USD) INC","LU0048580855.USD":"富达大中华区A","HK0000306685.HKD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (HKD) INC","LU0501845795.SGD":"瑞银大中华区股票基金P Acc SGD","NTES":"网易","LU0417516738.SGD":"Allianz Hong Kong Equity AT Acc SGD","LU0431992006.USD":"摩根大通新兴市场机会A（acc）","LU0359201885.HKD":"BGF CHINA \"A2\" (HKD) ACC","LU0348735423.USD":"ALLIANZ HONG KONG EQUITY \"A\" (USD) INC","LU0228659784.USD":"施罗德金砖四国基金","LU0708995583.HKD":"TEMPLETON CHINA \"A\" (HKD) ACC","NETTF":"NetEase, Inc.","BK1609":"ChatGPT概念","LU0463099449.HKD":"SCHRODER ISF CHINA OPPORTUNITIES \"A\" (HKD) ACC","LU0072913022.USD":"UBS (LUX) EQUITY FUND -  GREATER CHINA \"P\" (USD) ACC","LU2279701549.SGD":"JPMorgan Funds - Emerging Markets Sustainable Equity A (acc) SGD","LU1807302812.USD":"UBS (LUX) EQUITY SICAV ALL CHINA \"P\" (USD) ACC","LU1226288170.HKD":"UBS (LUX) KEY SEL S-CHINA ALLOCATION OPP \"P6%\"(HK D) INC","LU1831875114.USD":"SCHRODER ISF ALL CHINA EQUITY \"A\" (USD) ACC","BK4505":"高瓴资本持仓","LU0307460666.USD":"EASTSPRING INVESTMENTS CHINA EQUITY \"A\" ACC","LU0348825331.USD":"ALLIANZ CHINA EQUITY \"A\" (USD) INC","LU1023057109.AUD":"BGF CHINA \"A2\" (AUDHDG) ACC","LU2242644610.SGD":"Fidelity China Innovation A-ACC-SGD","LU0588546209.SGD":"Eastspring Investments - China Equity Fund AS SGD","LU0650527681.SGD":"Fidelity China Consumer A-SGD","LU1152091754.HKD":"UBS (LUX) EQUITY FUND - CHINA OPPORTUNITY (USD) \"PM\" (HKD) INC","LU2778985437.USD":"ALLIANZ CHINA FUTURE TECHNOLOGIES \"A\" (USD) INC","BK1531":"手游股","IE0008369823.USD":"FSSA HONG KONG GROWTH \"I\" ACC","LU0327786744.USD":"Janus Henderson Horizon China Opportunities A2 USD","LU0821914370.USD":"贝莱德亚洲成长领袖A2","LU1008478684.HKD":"UBS (LUX) EQUITY FUND -  CHINA OPPORTUNITY \"P\" (HKD) ACC","LU0540923850.HKD":"ALLIANZ HONG KONG EQUITY \"A\" (HKD) INC","LU0831103253.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD","LU0326950275.SGD":"Schroder ISF China Opportunities A Acc SGD-H","LU1481107354.HKD":"HSBC GIF HONG KONG EQUITY \"AD\" (HKD) INC","BK4501":"段永平概念","09999":"网易-S","LU1226287529.USD":"UBS (LUX) KEY SELECTION SICAV - CHINA ALLOCATION  OPPORTUNITY (USD) \"P\" (USD) ACC","LU0898667661.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD-H","LU0531971595.HKD":"HSBC GIF CHINESE EQUITY \"AD\" (HKD) INC","LU0348827113.USD":"ALLIANZ RCM CHINA \"AT\" ACC","LU0868486357.SGD":"JPMorgan Funds - Emerging Markets Opportunities A (acc) SGD-H","LU1770034418.SGD":"ALL CHINA EQUITY \"A\" (SGDHDG) ACC","LU0106959298.USD":"UBS (LUX) EQUITY FUND - EMERGING MARKETS SUSTAINABLE LEADERS (USD) \"P\" (USD) ACC","LU1048588211.SGD":"Blackrock Asian Dragon A2 SGD-H","BK1608":"元宇宙概念","LU1993786604.SGD":"UBS (LUX) EQUITY SICAV ALL CHINA \"P\" (SGD) ACC"},"translate_title":"网易公司(HKG：9999)股价飙升26%并没有完全增加","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NTES":1,"09999":1,"NETTF":1},"content_text":"NetEase, Inc. (HKG:9999) shareholders have had their patience rewarded with a 26% share price jump in the last month.    But the gains over the last month weren't enough to make shareholders whole, as the share price is still down 8.2% in the last twelve months.    Since its price has surged higher, NetEase may be sending very bearish signals at the moment with a price-to-earnings (or \"P/E\") ratio of 16.5x, since almost half of all companies in Hong Kong have P/E ratios under 9x and even P/E's lower than 5x are not unusual.  Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.     Recent times have been advantageous for NetEase as its earnings have been rising faster than most other companies.   It seems that many are expecting the strong earnings performance to persist, which has raised the P/E.  You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.      View our latest analysis for NetEase SEHK:9999 Price to Earnings Ratio vs Industry December 9th 2024 Keen to find out how analysts think NetEase's future stacks up against the industry? In that case, our free report is a great place to start.  What Are Growth Metrics Telling Us About The High P/E?   There's an inherent assumption that a company should far outperform the market for P/E ratios like NetEase's to be considered reasonable.   If we review the last year of earnings growth, the company posted a worthy increase of 3.1%.   Pleasingly, EPS has also lifted 135% in aggregate from three years ago, partly thanks to the last 12 months of growth.  Therefore, it's fair to say the earnings growth recently has been superb for the company.     Shifting to the future, estimates from the analysts covering the company suggest earnings should grow by 11% per year over the next three years.  That's shaping up to be similar to the 12% per year growth forecast for the broader market.  In light of this, it's curious that NetEase's P/E sits above the majority of other companies.  Apparently many investors in the company are more bullish than analysts indicate and aren't willing to let go of their stock right now.  These shareholders may be setting themselves up for disappointment if the P/E falls to levels more in line with the growth outlook.    The Final Word  NetEase's P/E is flying high just like its stock has during the last month.      Typically, we'd caution against reading too much into price-to-earnings ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.  We've established that NetEase currently trades on a higher than expected P/E since its forecast growth is only in line with the wider market.  Right now we are uncomfortable with the relatively high share price as the predicted future earnings aren't likely to support such positive sentiment for long.  This places shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.      Don't forget that there may be other risks. For instance, we've identified   1 warning sign for NetEase  that you should be aware of.   You might be able to find a better investment than NetEase. If you want a selection of possible candidates, check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings). Valuation is complex, but we're here to simplify it.Discover if NetEase might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2490803997"}