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<Research>CLSA: NetEase Game Momentum Improves, Maintains Outperform Rating
Recommend 4 Positive 4 Negative 2 |
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CLSA published a research report on NTES-S (09999.HK)(NTES.US), of which 4Q25 results were below expectations. Its total revenue grew by 3% YoY to RMB27.5 billion; and adjusted EBIT gained by 4.7% YoY to RMB9.2 billion, which were 5% and 8.5% below the broker's forecasts, respectively. Online game revenue missed forecast due to a high base last year and more games adopting longer revenue recognition, with revenue growing only 3.5% YoY. However, deferred revenue growth accelerated, up by 5% QoQ and 32% YoY. CLSA assumed that overall game momentum improved, particularly for "FWJ" and "Where Winds Meet". Looking ahead to 2026, CLSA believed the game pipeline is stronger, with the Diablo IV expansion pack, Sea of Remnants and Ananta. The broker slightly lowered its adjusted net profit forecast for 2026 by 2%, maintaining an Outperform rating and keeping the US stock target price unchanged at USD150. AASTOCKS Financial News Website: www.aastocks.com |
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