The APP of Zhitong Finance learned that Huatai released a research report covering NetEase, Inc youdao (DAO.US) for the first time on May 18. Huatai gave NetEase, Inc a "buy" rating of youdao, with a target price of $12.95.

Huatai pointed out that in the post-"double reduction" era, the youdao program focuses on areas of growth that are in line with its own expertise in educational science and technology, including smart hardware, quality courses, adult and vocational education courses, and educational information solutions. Taking into account youdao's ability to continue to achieve technological innovation, the growth of students in existing courses and the reserve of course research and development, the company estimates that Youdao, Inc's total income in 2022, 2023 and 2024 is expected to reach 5.23 billion, 6.68 billion and 8 billion respectively.

Huatai pointed out that the depressed trend of youdao shares is mainly suppressed by external policies and emotional aspects, and the market capitalization is undervalued.

Huatai said that external policies and market sentiment have a limited impact on the fundamentals of youdao. Youdao's learning services and smart hardware business are likely to achieve higher year-on-year growth in the next three years. Huatai believes that the company's current low share price does not reflect the intrinsic value of its existing business.