中国互联网行业2022年展望在充满挑战的时代找到一线希望-2022111-184

China

Internet

Sector2022

Outlook:

Finding

silver

liningsin

challenging

timesJasmine

Wang+852

2101

7181jasmine.wang@Kenneth

Fong+852

2101

6395kenneth.kc.fong@Ivy

Liu+852

2101

7103ivy.liu@Ivy

Ji+852

2101

7951ivy.ji@Lauren

Zuo+852

2101

7986lauren.zuo@Ashley

Xu+852

2101

7153ashley.xu@Sophia

Tan+852

2101

7735sophia.tan@

11

January

2022Equity

Research

China

Joanne

Ding

of

Credit

Suisse

Securities

(China)

Limited

("CSS")

provided

administrative

and

other

support

in

the

preparation

of

this

research

report

that

do

not

require

a

license.

CSS

is

a

Sino-foreign

joint

venture

between

Credit

Suisse

AG

and

Founder

Securities

Co.,

Ltd.

CSS

is

not

licensed

to

provide

securities

investment

advisory

service

by

the

China

Securities

Regulatory

Commission

in

the

People’s

Republic

of

China.DISCLOSURE

APPENDIX

AT

THE

BACK

OF

THIS

REPORT

CONTAINS

IMPORTANT

DISCLOSURES,

ANALYST

CERTIFICATIONS,

LEGAL

ENTITY

DISCLOSURE

AND

THE

STATUS

OFNON-US

ANALYSTS.

US

Disclosure:

Credit

Suisse

does

and

seeks

to

do

business

with

companies

covered

in

its

research

reports.

As

a

result,

investors

should

be

aware

that

the

Firm

may

have

aconflict

of

interest

that

could

affect

the

objectivity

of

this

report.

Investors

should

consider

this

report

as

only

a

single

factor

in

making

their

investment

decision.211

January

2022China

Internet

Outlook

2022Table

of

contents

Executive

summary6

Key

themes

worth

monitoring

in

2022

Growth:

Transitioning

from

user

growth

to

operational

optimisation

Regulation:

Focus

on

implementation

Ecosystem:

Inter-connectivity

entering

the

next

phase

Competitive

landscape:

Levelling

the

playing

field

Investment

focus:

Hard

technology,

overseas

market

and

shareholder

returns

Earnings:

Consenses

earnings

may

still

see

meaningful

adjustment

Subsector

outlook10142134363739

Online

games:

Opportunities

still

exist

in

the

new

normal

E-commerce:

Opportunities

may

arise

in

2H22

Advertising:

Stay

selective

as

macro

weighs

demand

Local

services:

Weak

near-term

visibility

despite

penetration

potential

Education:

Vocational

education

riding

on

policy

tailwinds

Travel:

The

eventual

recovery

could

be

on

the

horizon

Online

Entertainment:

Long

tunnel

before

lightStock

implications

Stock

picks:

Tencent,

NetEase,

Kuaishou,

PDD,

JOYY,

T

42

60

77

100

108

115

121135Note:

Share

price

and

mkt

cap

in

this

report

are

based

on

market

close

of

Jan

5,

2022.JOYY

☆

☆☆

☆311

January

2022China

Internet

Outlook

2022Focus

tables

Assessing

our

stock

picks’

exposure

to

6

key

themes

in

2022GrowthRegulatory

impactInter-connectivity

benefitCompetitive

landscapeEarning

upside

ValuationattractivenessTencentNetEaseKuaishouPDD

☆☆☆☆☆☆☆☆

☆☆

☆☆

☆☆☆☆☆

☆☆☆☆

☆☆☆☆☆

☆

☆☆☆☆☆☆☆☆

☆

☆☆

☆☆☆☆☆☆☆☆

☆☆

☆☆☆☆☆☆☆☆

Assessing

subsectors’

correlation

with

6

key

themes

in

2022T

☆☆

☆

☆☆☆☆☆☆

☆☆☆☆☆☆☆☆☆MarketCapPriceTarget

PriceUpsideP/E(x)PEG

(x)P/S

(x)EV/EBITDA

(x)Company

Tencent

PDD

NetEase

Kuaishou

T

JOYYRating

O

O

O

O

O

O(US$bn)

530.7

59.5

64.1

36.6

15.9

3.6(Local)

430.6

48.5

95.5

67.6

24.9

46.1(Local)

615.0

86.0

145.0

160.0

33.0

78.0

(%)

43%

77%

52%137%

32%

69%2021E

26.9x

42.2x

22.5x

n.a.107.8x243.2x2022E

23.4x

25.9x

19.4x

n.a.

30.1x

25.1x2023E

1.3x

0.1x

1.2x

n.a.

0.1x

0.1x2021E

6.1x

4.5x

4.7x

3.0x

5.2x

1.4x2022E

5.2x

3.8x

3.9x

2.7x

4.3x

1.3x2021E15.8x41.4x22.9x

n.a.

n.a.34.6x2022E19.2x20.6x19.6x

n.a.88.2x

9.8x☆☆☆=high/favorable;

☆☆=moderate;

☆=low/unfavorableValuation

sheet

of

our

stock

picksSource:

Company

data,

Refinitiv,

Credit

Suisse

estimates;

Note

that

share

price

and

mkt

cap

are

as

of

5-Jan-2022411

January

2022Internet

sector

corrected

39%

in

2021:

The

multiple

de-rating

due

to

regulatory

scrutiny

that

structurally

lowered

the

sector’sreturn

as

well

as

earnings

downgrade

amid

a

weak

macro

environment

in

2H21,

caused

a

sharp

sector

correction.Sector

outlook:

While

1Q22

could

still

be

difficult

for

the

sector

given

the

tough

base,

uncertainty

over

the

regulatory

impact

andmore

street’s

earning

downgrades,

we

do

see

opportunities

emerging

in

2022.

From

a

trading

perspective,

the

low

street

expectation,

light

investors

positioning

and

depressed

valuation

would

leave

room

for

upside

surprise.

Operationally,

the

structural

changes

post

regulatory

actions

will

provide

a

level

playing

field

that

fosters

healthier

competition,

despite

a

lower

near-term

return.

Top

line

growth

may

be

slower,

but

margin

and

earnings

may

have

upside,

in

our

view.

Last,

we

note

that

the

recent

regulatory

tone

is

more

balanced—pro

growth

and

stabilization—and

suggest

“focusing

on

the

positive

role

of

capital”

while

setting

a

bottom

line

for

capital

expansion.

In

terms

of

intensity,

the

worst

may

be

behind

us.6

key

themes

for

2022.

(1)

Growth.

Under

the

heightened

regulatory

environment

and

peaking

internet

traffic,

internet

companiesare

increasingly

looking

inward

for

growth

from

operating

efficiency

enhancement

and

value

creating

opportunity

leveraging

its

existingtraffic.

(2)

Regulation.

With

the

regulatory

legal

framework

largely

in

place,

the

focus

would

be

implementation:

new

advertising

draftrule,

game

approval

resumption

and

overseas

listing

status

of

the

ADRs.

(3)

Ecosystem.

We

expect

inter-connectivity

to

continue.Internet

companies

will

negotiate

to

resolve

issues,

including

platform

security

and

mutual

benefits,

as

they

dismantle

the

walledgarden.

(4)

Competition.

With

the

government’s

anti-trust

efforts,

dominant

leaders

are

more

mindful

of

market

share,

creatingopportunities

for

others

to

catch

up.

(5)

Investment

focus.

Hard

technology

and

overseas

market

would

be

the

focus.

Internetcompanies

would

also

look

for

ways

to

unlock

shareholder

value

(e.g.,

buyback

and

spinning

off).

(6)

Earnings

forecasts.

Webelieve

the

street

has

not

factored

in

the

downside

from

macro

and

investments

and

upside

from

margin

saving.

Among

the

big-capinternet

companies,

we

hold

different

views

from

the

street

on

BABA

and

Meituan

(on

the

downside)

and

PDD

(on

the

upside).Executive

summaryFinding

silver

linings

in

challenging

times

China

Internet

Sector:

Review,

outlook

and

key

themes511

January

2022#1.

Online

games.

Remains

our

preferred

pick

for

its

relative

resilience

to

macro

weakness,

stable

competitive

landscape

and

progressof

overseas

growth

as

a

new

driver.

The

resumption

of

Banhao

approval

would

be

a

catalyst

while

we

see

medium-term

upside

from

thedecrease

of

app

store

channel

fee

(Apple

vs

Epic)

as

a

margin

driver.#2.

E-commerce.

We

remain

cautious

for

1H22

for

slowing

consumption

and

heightened

competition

that

could

lead

to

furtherearnings

cut,

but

we

see

opportunity

in

2H22

on

potential

recovery

helped

by

the

government’s

stimulus

measures

and

the

possibleless-rapid

pace

of

short-video

platforms’

market

share

gain.

Among

the

big

players,

we

do

see

operational

improvement

for

JD

(To-B

&3P)

and

PDD

(brand

effort

&

UE

improvement

from

CGP)

helping

deliver

stronger

performance

despite

the

weak

macro.#3.

Advertising.

The

1H22

outlook

stays

dim

owing

to

the

weaker

macro,

and

the

structurally

impaired

demand

(education

andfinancial

services)

will

take

time

to

rebase.

The

measures

for

regulating

internet

advertising

(draft)

rule

also

present

overhang

for

short-/long-form

video

platforms.#4.

Local

services.

Monetisation

potential

for

the

sector

is

still

huge,

but

the

macro

slowdown

and

fluid

Covid

situation

are

limitingoffline

activities.

Rider

cost

pressure

from

social

security

requirement

and

labour

shortage

may

cloud

the

near-term

outlook.#5.

Education.

We

continue

to

favour

the

China

vocational

education

sector

for

its

undemanding

valuation

(high-single-digit

to

low-teenforward

P/E),

visible

growth

with

policy

support.#6.

Travel.

Despite

the

near-term

uncertainties,

we

see

good

entry

points

for

OTA

names

to

position

for

the

eventual

recovery

over

thenext12-18

months.#7.

Entertainment.

We

remain

cautious,

given

the

increased

competition

and

content

investment

that

drag

margin

with

stricterregulatory

content

scrutiny

and

constrained

monetisation

hurting

growth.Executive

summaryFinding

silver

linings

in

challenging

timesSub-sector

ranking

by

order

of

preferenceOnline

gameE-commerceAdvertisingLocal

servicesEducationTravelEntertainment611

January

2022

Executive

summary

Finding

silver

linings

in

challenging

times

Stock

picks

from

three

angles(1)

Steady

core

holdings

with

visible

earnings

outlook.

Tencent’s

under-monetised

assets

&

user

base

should

provide

longer-termopportunity

&

visibility.

After

the

recent

special

dividend

of

JD

shares,

we

believe,

investors

would

also

start

attributing

more

value

to

itsunderlying

investments

which

make

up

close

to

half

of

its

market

cap.

NetEase

has

consistently

demonstrated

its

ability

to

deliver

steadyshareholder

return

and

a

strong

track

record

of

content

development

with

a

sticky

gamer

base.

Near-term

catalysts

include

the

resumptionof

game

monetisation

approval

and

launch

of

highly

anticipated

titles

like

Harry

Potter

overseas

(2Q22)

and

Diablo

(1H22).(2)

Higher-beta

names,

but

improving

fundamentals

underappreciated.

Kuaishou’s

operational

improvement

&

easingcompetition

(Douyin

scaling

down

user

acquisition)

should

allow

it

to

deliver

stronger

earnings

&

user

growth

in

2022.

Recent

S&Mefficiency

improvement

should

filter

through

earnings

in

upcoming

quarters.

The

medium-term

upsides

include

efforts

to

attract

morebranded

merchants

and

helping

e-commerce

and

advertising.

PDD

now

is

trading

only

at

26x

2022E

even

if

we

conservatively

assumeadj.

earnings

at

only

Rmb17.9

bn

in

2022E

(vs.

average

of

c.Rmb3.5

bn/Q

in

2Q-3Q21).

With

APRU

uplift

(as

brand

efforts

bear

fruit),S&M

scaling

down,

and

improving

UE

from

CGP,

we

see

further

earnings

upside.(3)

Deep-value

names

post

recent

share

price

correction.

JOYY

is

currently

trading

at

a

depressed

price

of

US$46/share

vs:

(1)cash

of

US$25/share;

(2)

US$45/share

to

be

received

from

Baidu

(if

the

deal

goes

through);

and

(3)

Huya’s

market

value

of

US$3,

withthe

rest

of

the

overseas

business

pretty

much

for

free.

Baidu

YY

acquisition

approval

and

capital

action

would

be

catalysts.

T

isnow

trading

at

17x

2023E

(assuming

earnings

back

to

2019

pre-Covid

level),

a

similar

level

in

Apr-2020

at

the

height

of

the

global

Covidoutbreak.

Yet

looking

into

2022,

we

are

arguably

finally

seeing

light

at

the

end

of

the

very

long

tunnel.

With

the

further

containment

ofCovid

globally

and

potential

loosening

in

domestic

zero-Covid

policy,

we

see

T

as

a

prime

beneficiary

and

leveraged

reopening

play.711

January

2022Online

games.

Instead

of

Metaverse

which

is

still

at

a

nascent

stage,

we

believe,

the

near-term

upside

could

come

from

thereduction

of

app

store

channel

fee

that

would

lift

game

developers’

operating

margins

meaningfully.

Watch

out

for

the

progress

ofcourt

case

between

Epic

and

Apple.

This

should

benefit

both

Tencent

and

NetEase

.Food

delivery.

On

top

of

the

well-understood

headwinds

such

as

weak

macro

and

Covid

resurgence,

another

challenge

forMeituan’s

food

delivery

business

is

the

shortage

of

delivery

riders,

especially

in

the

higher-tier

cities,

according

to

our

channel

check.Together

with

the

gradual

rollout

of

social

security

insurance

for

riders,

we

expect

the

pace

of

unit

economic

improvement

to

beslow.Livestreaming

e-commerce.

After

the

high-profile

case

of

Viya’s

tax

incident,

we

expect

platforms

to

put

more

efforts

to

promotemerchants’

self-operated

livestreaming

(less

costly)

and

reduce

reliance

on

KOLs.

While

merchants’

livestreaming

will

take

longertime

gain

momentum,

this

could

potentially

benefit

take

rate

of

platforms

and

lift

merchants’

profitability.Levelling

the

playing

field.

Kuaishou

should

benefit

from

Douyin’s

scaling

down

of

user

acquisition

and

limiting

time-spend,

whichstarted

in

Sep-2021

due

to

anti-trust

concern,

on

top

of

its

own

operational

improvement.

This

changing

competitive

landscape

isunderappreciated

by

the

market,

in

our

view.Some

operational

changes

for

companies

to

watch

out

for.

They

include

JD

3P

initiatives

(benefit

ad

revenue)

and

steppingup

of

To-B

in

lower-tier

cities

(due

to

its

price

advantage),

PDD

branding

effort

through

Qunmaimai

(benefiting

ARPU),

Kuaishouadvertising

upside

with

improvement

in

algorithm,

and

Tencent’s

continuous

push

for

mini-programme

as

the

landing

page

toenhance

ad

conversion.Executive

summary9

takeaways

from

this

reportHow

we

think

differently

from

street….811

January

2022Capital

action

opportunities?

After

the

recent

share

price

correction,

Huya

&

JOYY

are

trading

below

cash

value.

A

few

othernames

also

imply

single-digits

for

core

operations.

We

expect

internet

companies

to

be

more

active

in

unlocking

shareholder

valuegiven

the

depressed

valuation.

For

Tencent’s

recent

sell-down

of

SEA,

we

believe

that

it

does

not

mean

it

will

speed

up

the

disposal

ofits

other

investments,

but

to

lock

in

some

profit

from

its

investment

at

the

beginning

of

the

year

to

support

its

common

prosperityfunds,

as

it

is

funded

by

non-GAAP

investment

income.Advertising.

Our

comprehensive

assessment

and

outlook

for

the

key

internet

verticals

in

2022

after

surveying

a

few

ad

agencies.

Wealso

highlight

the

key

ad

drivers/initiatives

and

challenges

for

individual

companies

in

2022.E-commerce.

A

quick

summary

of

the

key

e-commerce

challenges

and

opportunities

in

2022.Regulation.

A

comprehensive

wrap

of

the

key

regulations

in

2021

and

their

implications

with

further

detailed

discussion

in

each

ofthe

sub-sectors.Executive

summary9

takeaways

from

this

report911

January

2022Executive

summaryChina

internet

comparison

tableSource:

Company

data,

Refinitiv,

Credit

Suisse

estimates;

Note

that

mkt

cap

and

share

price

are

as

of

5

Jan

2022Mkt

CapPriceTarget

PriceUpsideEPSP/E(x)PEGP/S(x)Share

price

performanceCompanyTickerCcyRating(US$bn)(Local)(Local)(%)2021E2022E2021E2022E2023E2021E2022E1

month

3

months1

yearMajor

PlatformsAlibabaTencentBaiduMeituan

BABA.N

0700.HKBIDU.OQ

3690.HKUSDHKDUSDHKDOOOO329.3530.7

50.9153.5121.2430.6143.9195.1175.0615.0190.0290.044%43%32%49%65.113.352.8(2.8)49.915.351.1(0.9)15.3x26.9x17.4x

n.a.13.5x23.4x17.9x

n.a.0.7x1.3x1.0xn.a.2.5x6.1x2.6x5.5x2.1x5.2x2.4x4.2x

-2%

-4%

-3%-16%-22%

-9%

-8%-22%-50%-26%-33%-34%Average19.8x18.3x1.0x4.2x3.5x-6%-15%-36%China

EcommerceAlibabaJDPDDVipshopBaozunDingdongDada

BABA.N

JD.OQ

PDD.OQ

VIPS.NBZUN.OQ

DDL.NDADA.OQUSDUSDUSDUSDUSDUSDUSDOOONUON329.3

98.0

59.5

5.4

1.0

3.3

2.5121.2

63.0

48.5

7.8

13.0

14.0

10.6175.0108.0

86.0

7.7

12.0

35.0

25.0

44%

71%

77%

-1%

-8%151%135%

65.1

10.4

7.3

9.0

2.5(28.6)

(9.0)

49.9

15.3

11.9

9.9

5.8(23.5)

(2.3)15.3x38.7x42.2x

5.5x33.4x

n.a.

n.a.13.5x26.3x25.9x

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n.a.

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-7%-14%-30%-22%-17%-49%-29%-31%-42%-48%-50%-34%-74%-73%-64%

n.a.-73%Average27.0x17.0x0.4x1.7x1.4x-0.1x-0.3x-0.6xEducationHope

EducationChina

EducationGroupChinaEastEducation1765.HK0839.HK0667.HKHKDHKDHKDOON

1.512.2

4.7

2.523.0

5.072%88%

7%11.0x15.7x12.4x

9.5x13.8x

9.5x0.6x0.9x0.4x4.1x6.6x2.1x3.3x5.4x1.9x

-3%

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-5%-41%-34%-22%-70%Average13.0x11.0x0.6x4.2x3.5x-11%-9%-42%Online

games

and

EntertainmentNetEaseTMEiQiyiMOMOHuyaBilibili

NTES.OQ

TME.N

IQ.OQMOMO.OQ

HUYA.N

BILI.OQUSDUSDUSDUSDUSDUSDONNNNO64.110.7

3.3

1.8

1.414.695.5

6.3

4.2

8.7

6.538.0145.0

8.5

4.6

12.0

8.5

85.0

52%

34%

10%

38%

30%124%

27.1

2.5

(6.5)

9.4

1.3(15.5)

31.3

2.4

(4.5)

11.7

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n.a.

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n.a.19.4x16.6x

n.a.

4.8x

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-1%-15%-49%-21%-28%-46%

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157.6x25.1x55.6x0.1x0.3x1.4x6.0x1.3x5.1x3%1%-16%

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ZH.NHKDHKDUSDOOO

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2.647.367.6

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89.0160.0

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71%

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1.7(2.8)(1.6)30.9x

n.a.

n.a.22.6x

n.a.

n.a.0.7xn.a.n.a.4.3x3.0x5.7x3.6x2.7x3.3x

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n.a.

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107.8x30.1x0.1x5.2x4.3x-6%-21%-27%Tongcheng

Elong0780.HKHKDO4.014.119.035%0.60.719.0x16.4x0.6x3.3x2.9x-17%-27%-6%Average63.4x23.3x0.3x4.3x3.6x-12%-24%-17%Advertising

and

verticalsWeiboBeikeAutohomeWB.OQBEKE.NATHM.NUSDUSDUSDONN

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4.032.017.131.444.019.337.038%13%18%19.3

1.520.520.5

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January

2022China

Internet

SectorSix

key

themes

worth

monitoring

in

2022202020211111

January

2022The

Internet

sector

corrected

39%

in

2021,

much

weaker

than

NASDAQ’s

+69%

and

HSI’s

-15%.Regulatory

scrutiny

has

been

a

main

theme

for

the

sector.

On

top

of

the

sector-wide

regulations

(e.g.,

anti-monopolyand

data

security

&

privacy),

the

sub-sector-specific

rules

(minor

protection,

labour

protection)

together

with

China’scommon

prosperity

goal

(e.g.,

tax,

reduce

inequality

&

more

support

to

SMEs)

have

brought

certain

structural

changes

tothe

industry

and

dampened

the

industry’s

return.Compounded

by

a

weaker

macro

starting

in

2H21.

Share

prices

took

a

another

hit

in

4Q21

as

weaker

macro

also

started

to

filter

through

the

industry’s

growth

outlook.Timeline

of

key

regulatory

events

in

China’s

internet

spaceWrapping

up

2021A

perfect

storm

for

the

internet

space

in

2021

July

2021China

orders

K-9AST

to

registeras

non-profitorganisationsOct

2020Jack

Mapublic

speechDec

2020CEWC:

Platformantitrust,

prevention

ofcapital’s

disorderlyexpansion

2021

priorityJuly

2021Days

after

listing

debut,

Didi

undercybersecurity

reviewSAMR

rejected

proposed

mergerof

Huya

&

Douyu;

TME

ordered

togive

up

exclusive

rightsNov

2020President

Xi:

good

lawscan

protect

healthydevelopment

of

neweconomy,

new

modelFeb

2021Platform

antitrustrules

officiallyreleased

andeffectiveAug

2021NPPA

launchmeasureslimiting

minors’game

play

timeSept

2021

Data

Security

Law

effective;

Tencent

starts

small

step

on

interconnectivityApr

2021Alibaba

gets

recordfine

on

monopolisticpractice;

Antsummoned

forrectificationApr

2021SAMR

probesMeituan

forsuspected

“2pick

1”

practiceOct

2021Meituan

getsless-than-expected

finefor

“2

pick

1”Nov

2021

PIPL

effective

Dec

2021Taobao

toplivestreamer

Viyafined

Rmb1.34bnfor

tax

evasionsDec

2021CEWC:

focus

onpositive

role

capital

canplay

while

effectivelycontrol

its

negativeeffect

in

20221211

January

2022Wrapping

up

2021Share

price

correction

breaking

into

earnings

&

multipleSource:Companydata,Bloomberg,CreditSuisseestimates;NotethatFYendingat31-Mar

ofnextyearisappliedforBABA’sfinancialdata;Sharepriceisasof

31-Dec-2021forayearlywrap-upCompanyTicker2021

price

%1-year

forward

1-year

forwardP/E

2020

Year

P/E

2021

Year

P/E

re-rating

end

endImplied

P/E(CSe

2022E)EPS

21-23E

CAGR1-year

forward

1-year

forwardP/S

2020

Year

P/S

2021

Year

P/S

re-rating

end

endRevenue

21-23E

CAGRMajor

Platforms

BABA.N

0700.HKBIDU.OQ

3690.HKAlibabaTencentBaiduMeituanAverage-49.0%-19.0%-31.2%-23.5%-30.7%

22.8x

29.5x

21.3x116.3x

47.5x

12.2x

24.6x

13.8x617.7x167.1x-46.5%-16.5%-35.0%431.0%

83.2%22.4x33.1x23.7x

n.a.26.4x22.8%

n.a.32.5%

n.a.27.7%5.9x7.7x3.1x8.3x6.2x2.1x5.4x2.3x4.7x3.6x-64.9%-30.1%-24.6%-44.0%-40.9%16.8%

n.a.13.1%

n.a.14.9%China

Ecommerce

BABA.N

JD.OQ

PDD.OQ

VIPS.NBZUN.OQ

DDL.NDADA.OQAlibabaJDPDDVipshopBaozunDingdongDADAAverage-49.0%-20.3%-67.2%-70.1%-59.5%

n.a.-63.9%-55.0%

22.8x

36.6x463.1x

17.8x

21.2x

n.a.

n.a.112.3x12.2x24.9x20.0x

5.4x15.1x

n.a.

n.a.15.5x-46.5%-31.9%-95.7%-69.7%-28.9%

n.a.

n.a.-54.5%22.4x46.0x45.9x

5.0x13.1x

n.a.

n.a.26.5x

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51.3%110.3%

11.0%

71.6%-19.1%

n.a.

41.3%

5.9x

1.0x17.5x

1.0x

1.6x

n.a.

6.1x

5.5x2.1x0.6x3.4x0.3x0.6x0.8x1.9x1.4x-64.9%-39.7%-80.8%-71.2%-61.2%

n.a.-68.9%-64.5%16.8%20.7%36.5%

5.8%10.1%49.6%55.5%27.9%Online

games

and

Entertainment

NTES.OQ

TME.N

IQ.OQMOMO.OQ

HUYA.N

BILI.OQ

YY.OQ

3888.HK

1024.HK

0772.HK

ZH.NNetEaseTMEiQiyiMOMOHuyaBilibiliYYKingsoftKuaishouChina

LiteratureZhihuAverage

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n.a.-19.5%

n.a.-41.1%22.1x34.0x

n.a.

7.3x18.7x22.8x16.0x41.2x

n.a.38.3x

n.a.25.1x20.5x18.0x

n.a.

5.0x

n.a.

n.a.25.0x33.9x

n.a.23.9x

n.a.21.0x

-7.6%-47.2%

n.a.-30.8%

n.a.

n.a.55.6%-17.7%

n.a.-37.7%

n.a.-14.2%29.5x22.3x

n.a.

6.6x

n.a.

n.a.41.7x77.3x

n.a.42.7x

n.a.36.7x

n.a.

2.9%-40.1%

19.3%

36.5%-12.3%264.7%142.2%-19.2%

28.5%

n.a.

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n.a.-25.1%

n.a.-37.8%

n.a.

n.a.

7.7%

6.1%

4.5%39.3%

8.3%21.7%29.6%19.2%83.9%24.5%TravelTCOM.OQ

0780.HKTTongcheng

ElongAverage-27.0%

-3.7%-15.4%

n.a.14.8x14.8x30.3x14.1x22.2x

n.a.-4.4%-4.4%39.9x22.5x31.2x156.3%

n.a.156.3%n.a.3.1x3.1x4.3x2.6x3.4x

n.a.-17.0%-17.0%30.4%

n.a.30.4%Advertising

and

verticalsWB.OQBEK