Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong expectation of performance exceeding the market by over 20% [3][4]. Core Insights - The company's Q2 mobile game revenue grew by 16% year-on-year, outperforming the industry average decline of 5.7%, with significant contributions from titles like "Dreamland Mobile" and "Identity V" [3]. - The outlook for the second half of the year is positive, with expectations for growth driven by new PC game releases and the stabilization of existing titles [3][4]. - Online music revenue increased by 27% year-on-year, indicating strong growth potential in this segment despite some offset from a strategic reduction in live streaming [3][4]. Financial Data and Earnings Forecast - Revenue projections for 2024E, 2025E, and 2026E are estimated at 107,588 million RMB, 119,644 million RMB, and 127,182 million RMB respectively, with growth rates of 4%, 11%, and 6% [2][6]. - Adjusted net profit for 2024E, 2025E, and 2026E is forecasted to be 32,822 million RMB, 36,374 million RMB, and 39,738 million RMB, reflecting growth rates of 0%, 11%, and 9% [2][6]. - The company’s price-to-earnings (PE) ratio is projected to decrease from 11x in 2024 to 9x in 2026, indicating a potentially undervalued stock [4].

证券研究报 告 网易-S（09999.HK）2024Q2 业绩点评 推荐（维持） 存量游戏保持韧性，汇兑损益拖累当期利润表现； 关注后续产品线 事项： 网易 24Q2 实现营收 254.86 亿元(yoy+6.14%，qoq-5.08%)，其中游戏及相关 增值服务营收为 200.56 亿元(yoy+6.69%，qoq-6.54%)；有道业务收入为 13.22 亿元(yoy+9.5%)；创新及其他业务营收 20.67 亿元(yoy+0.48%)；云音 乐业务营收 20.41 亿元(yoy+4.74%)。公司实现归母净利润为 67.59 亿元 (yoy-18.00%) 。 Non-Ifrs 归 母 净 利 润 为 78.19 亿 元 (yoy-13.29% ， qoq8.12%)。存量游戏整体保持韧性，部分次新游戏环比或略有减弱；汇兑损 益拖累当期利润表现。 评论： 手游端同比保持增长环比略有下滑，整体毛利率继续提升 网易 24Q2 实现游戏及相关增值服务营收为 200.56 亿元(yoy+6.69%，qoq6.54%)：其中 2024Q2 手游收入为 147.3 亿元（yoy+16.06%，qoq-8.3%）， ...

佳肴不忌迟至，期待新游上线 ——网易（9999.HK）24Q2 点评 核心观点 ⚫ 24Q2 营收 254.9 亿（yoy+6.1%,qoq-5.1%)，同比增长主要系手游净收入的增加。 Q2 毛利率 62.95%（yoy+3.1pp,qoq-0.4pp)，同比提升主要由云音乐毛利率增长带 来。销售费用 35 亿(yoy+7%,qoq-13%)；管理费用 11 亿(yoy-3.6%,qoq-8.8%)；研 发费用 44.6 亿(yoy+14%,qoq+6.7%)。Non-GAAP 归母净利润 78.2 亿（yoy13.3%，qoq-8.1%）。 GAAP 归母净利润 67.6 亿（yoy-18%，qoq-11.5%）。 ⚫ 24Q2 游戏及相关增值服务总收入 200.6 亿（yoy+6.7%,qoq-6.5%）， Q2 扣除有 道外合同负债 126 亿（与上期差值-16 亿）。游戏及相关增值服务毛利率 70% （yoy+2.61pp,qoq+0.59pp）毛利率环比和同比增加主要由于产品组合的变动。其 中手游收入 147.3 亿（yoy+16.06%，qoq-8.3%），端游收入 45.5 亿（yoy0.05 ...

2024 年 08 月 26 日 公司研究 评级：增持(下调) | --- | --- | |--------------|----------------------| | 研究所： | | | 证券分析师： | 陈梦竹S0350521090003 | | | chenmz@ghzq.com.cn | | 证券分析师： | 尹芮S0350522110001 | | | yinr@ghzq.com.cn | [Table_Title] 整体表现稳健，关注后续游戏产品释放节奏 ——网易-S（9999.HK）2024Q2 财报点评 最近一年走势 相对恒生指数表现 2024/08/23 表现 1M 3M 12M 网易-S -9.8% -8.8% -17.2% 恒生指数 0.8% -6.7% -1.3% 市场数据 2024/08/23 当前价格（港元） 128.30 52 周价格区间（港元） 116.10-185.70 总市值（百万港元） 413,442.72 流通市值（百万港元） 413,442.72 总股本（万股） 322,246.86 流通股本（万股） 322,246.86 日均成交额（百万港元） 2,670. ...

Investment Rating - The report maintains a "Buy" rating for the company [1][3]. Core Insights - The company achieved a revenue of 25.5 billion RMB in Q2 2024, representing a year-on-year growth of 6%. However, the Non-GAAP net profit decreased by 13% to 7.8 billion RMB, primarily due to reduced foreign exchange gains [2]. - The online gaming segment showed robust performance with revenues of 19.3 billion RMB, a 12% increase year-on-year, driven by successful new game launches and a strong pipeline of upcoming titles [2][3]. - Cloud music revenue grew by 4.7% to 2 billion RMB, with an improved gross margin of 32.1%, attributed to accelerated membership growth and better cost control [2]. - The AI-driven education platform, Youdao, reported a revenue of 1.3 billion RMB, up 9.5%, with significant growth in AI subscription services [2]. - The innovative segment remained stable with revenues of 2.1 billion RMB, maintaining its position in the market [2]. Summary by Sections Revenue and Profitability - Q2 2024 revenue was 25.5 billion RMB, up 6% year-on-year. Non-GAAP net profit was 7.8 billion RMB, down 13% [2]. - The gaming segment's revenue was 19.3 billion RMB, a 12% increase, with mobile games contributing 14.7 billion RMB, up 16% [2]. Future Projections - The company expects Non-GAAP net profits of 35.5 billion RMB, 38.3 billion RMB, and 41.3 billion RMB for 2024, 2025, and 2026 respectively, with corresponding EPS of 10.26 RMB, 11.09 RMB, and 11.95 RMB [3][11]. Business Segments - Cloud music revenue is projected to grow, with a focus on enhancing user experience and subscription services [8]. - Youdao's revenue is expected to continue its upward trend, driven by AI integration and educational services [8]. - The innovative segment is anticipated to maintain stable growth, focusing on product quality and market demand [8].

证券研究报告 | 2024年08月23日 网易-S（09999.HK） 优于大市 收入稳健增长，观察游戏调整情况以及新游戏表现 24Q2 收入同比增长6%，经调利润率同比下降7pct。24Q2，公司实现营收 255 亿元，同比增长 6%。收入增长主要由手游业务和有道驱动。24Q2，公司 综合毛利率 63%，同比提升 3pct。其中，游戏及增值服务毛利率 70%， 同比提升 3pct。24Q2，公司总经营费率为 36%，同比提升 1pct。其中销 售费率 13.7%，同比上升 0.1pct。24Q2 公司 Non-GAAP 归母净利润 78 亿元，同比降低 13%；Non-GAAP 归母净利率 31%，同比下降 7pct。 手游收入增长 16%，游戏储备丰富。24Q2，在线游戏业务收入为 192.7 亿 元，同比增长 12%。其中，手游收入 147 亿元，同比增长 16%。PC 端游 收入 45 亿元，同比持平。公司 7 月下旬推出《永劫无间手游》，发行 后，该游戏迅速攀升至 iOS 畅销榜排行榜第 3 位，持续超过一周位居 iOS 下载榜榜首。《七日世界》8 月份更新后在 12 个国家和地区的 Steam 畅 ...

Financial Performance - NetEase's net revenue for Q2 2024 was RMB 25.5 billion ($3.5 billion), representing a year-over-year increase of 6.1%[3] - Revenue from games and related value-added services reached RMB 20.1 billion ($2.8 billion), up 6.7% year-over-year[3] - Youdao's revenue was RMB 1.3 billion ($181.9 million), reflecting a 9.5% year-over-year increase[3] - Cloud Music generated RMB 2 billion ($280.8 million) in revenue, a 4.7% increase year-over-year[3] - Gross profit for Q2 2024 was RMB 16 billion ($2.2 billion), marking an 11.6% year-over-year increase[3] - Net profit attributable to shareholders was RMB 6.8 billion ($930 million), with a non-GAAP net profit of RMB 7.8 billion ($1.1 billion)[4] - Basic earnings per share were $0.29, with a non-GAAP basic earnings per share of $0.33[4] - In Q2 2024, net profit attributable to shareholders was RMB 6.8 billion (USD 930 million), down from RMB 7.6 billion in the previous quarter and RMB 8.2 billion year-over-year[14] - Non-GAAP net profit attributable to shareholders in Q2 2024 was RMB 7.8 billion (USD 1.1 billion), down from RMB 8.5 billion in the previous quarter and RMB 9.0 billion year-over-year[15] - The net profit attributable to shareholders was RMB 8,242,767 thousand, a decrease of 1.5% from RMB 8,350,000 thousand year-over-year[31] - The net profit for the six months ended June 30, 2024, was $14,630,956, compared to $14,528,964 in the previous year, indicating a slight increase[35] Operating Metrics - In Q2 2024, the gross margin for games and related value-added services was 70.0%, up from 69.5% in the previous quarter and 67.4% year-over-year[9] - In Q2 2024, Youdao's gross margin was 48.2%, down from 49.0% in the previous quarter but up from 47.0% year-over-year, primarily due to a decline in learning services revenue contribution[9] - In Q2 2024, gross margin for Cloud Music was 32.1%, down from 38.0% in the previous quarter and up from 27.0% year-over-year, affected by a one-time adjustment in copyright fees[9] - The total gross profit margin for the company was 59.9%, compared to 59.5% in the same period last year[27] - The gross profit for the cloud music segment was RMB 525,684 thousand, with a gross margin of 27.0%, compared to 24.7% in the same period last year[27] Expenses and Costs - Total operating expenses in Q2 2024 were RMB 9 billion (USD 1.2 billion), down from RMB 9.4 billion in the previous quarter but up from RMB 8.3 billion year-over-year[11] - The company reported a total operating cost of RMB 9,635,888 thousand, which is a slight increase from RMB 9,443,587 thousand year-over-year[27] - Research and development expenses for the six months ended June 30, 2023, totaled RMB 7,658,639, compared to RMB 8,630,475 for the same period in 2022, a decrease of about 11.3%[25] - R&D expenses increased to RMB 429,892 thousand for the three months ended June 30, 2024, reflecting a 52.3% increase from RMB 282,466 thousand in the same period last year[29] Cash Flow and Investments - As of June 30, 2024, the company had a net cash balance of RMB 116.1 billion (USD 16 billion), up from RMB 110.9 billion at the end of 2023[16] - The company reported a net cash inflow from investing activities of RMB 11,589,514 thousand for the three months ended June 30, 2024, compared to RMB 12,859,889 thousand in the same period of 2023, indicating a decrease of 9.9%[26] - The company’s net cash inflow from operating activities for the three months ended June 30, 2024, was RMB 7,678,405 thousand, compared to RMB 9,557,169 thousand in the same period of 2023, a decrease of 19.6%[26] Shareholder Returns - The company declared a quarterly dividend of USD 0.0870 per share, payable on September 17, 2024, to shareholders of record as of September 6, 2024[17] - The company has repurchased approximately 11.9 million ADS under its buyback plan, totaling about USD 1.1 billion as of June 30, 2024[18] Financial Position - As of June 30, 2024, total assets amounted to RMB 183.34 billion, a decrease from RMB 185.92 billion as of December 31, 2023[24] - Cash and cash equivalents were reported at RMB 18.98 billion, down from RMB 21.43 billion as of December 31, 2023[24] - Total liabilities decreased to RMB 48.99 billion from RMB 57.84 billion as of December 31, 2023, indicating improved financial health[24] - The company’s equity attributable to shareholders increased to RMB 130.91 billion from RMB 124.29 billion, reflecting a growth of approximately 5.3%[24] - Short-term investments rose significantly to RMB 10.42 billion from RMB 4.44 billion, indicating a strategic shift towards liquid assets[24] - The company reported a total current liabilities of RMB 45.93 billion, down from RMB 53.84 billion, showing effective management of short-term obligations[24] - The deferred tax liabilities decreased to RMB 1.45 billion from RMB 2.30 billion, suggesting a positive adjustment in tax planning[24] - The total non-current assets increased to RMB 45.19 billion from RMB 43.23 billion, indicating ongoing investment in long-term growth[24] Tax and Regulatory - The effective tax rate for Q2 2024 was 16.0%, consistent with the previous quarter and up from 8.0% year-over-year[13] - The income tax expense for the six months ended June 30, 2023, was $(2,340,649), slightly lower than $(2,325,360) in the previous year[34] Market Strategy - The launch of new games, such as "Firefly Assault" and "World of Survival," has significantly boosted user engagement and downloads[5] - Youdao continues to see growth in digital content services and AI subscription services, achieving record operating cash inflow[6] - Cloud Music is enhancing its music ecosystem, focusing on high-quality user experiences and community engagement[6] - The company plans to continue expanding its market presence and investing in new technologies and products to drive future growth[27] Accounting and Reporting - The company emphasized the importance of non-GAAP financial metrics for investors to better understand operational performance and future prospects[23] - The company has made significant adjustments in its financial reporting between US GAAP and IFRS, reflecting important differences in accounting policies[38]

Investment Rating - The investment rating for the company is "Outperform the Market" [3][24][13] Core Insights - In Q1 2024, the company achieved a revenue of 26.9 billion yuan, representing a year-on-year growth of 7%. The growth was primarily driven by mobile gaming and Youdao, partially offset by a decline in PC gaming revenue [22][29] - The company's overall gross margin improved to 63%, up by 4 percentage points year-on-year, with gaming and value-added services gross margin at 69.5%, an increase of 3 percentage points [22][27] - Non-GAAP net profit for Q1 2024 was 8.5 billion yuan, a 12% increase year-on-year, with a Non-GAAP net profit margin of 32%, up by 1 percentage point [22][29] Summary by Sections Gaming Business - Online gaming revenue reached 20.43 billion yuan, a 10% increase year-on-year, with mobile gaming revenue at 16.1 billion yuan, growing by 19% due to strong performances from titles like "Party of Eggs" and "Identity V" [22][30] - PC gaming revenue decreased by 15% to 4.4 billion yuan, mainly due to the suspension of Blizzard games. The company has renewed its distribution agreement with Blizzard to reintroduce their games to the Chinese market [22][30] - The company plans to complete adjustments to "Fantasy Westward Journey" in the first half of this year to enhance long-term player engagement [22][31] Youdao - Youdao's net revenue for Q1 2024 was 1.4 billion yuan, a 20% increase year-on-year, with advertising revenue doubling to 490 million yuan, marking a historical high [22][32] - The strategic focus on digital content services and AI-driven subscription services has led to profitability over two consecutive quarters [22][32] Cloud Music - Cloud Music reported a net revenue of 2 billion yuan in Q1 2024, a 4% increase year-on-year, with a gross margin of 37.97%, up by 15.5 percentage points due to improved cost control [23][33] Financial Forecast - The company maintains a robust product pipeline with expected releases such as "Eternal Return" and "Yanyun Sixteen Sounds" in the second half of the year. The adjusted net profit forecasts for 2024-2026 are 36 billion, 38.6 billion, and 41.2 billion yuan respectively [22][13][26]

Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company reported Q1 2024 revenue of 26.852 billion RMB, a year-over-year increase of 7.21%. The gross profit for Q1 was 17 billion RMB, with a gross margin of 63.37% [2][8]. - Mobile gaming showed steady growth, while PC gaming experienced a decline. Q1 gaming and related value-added services revenue was 21.46 billion RMB, up 7% year-over-year, with mobile games accounting for 78.6% of online gaming revenue [2][19]. - The company has a strong pipeline of self-developed games, with several titles set to launch in the coming months, which is expected to bolster future performance [2][19]. Summary by Sections Financial Performance - Q1 2024 revenue was 26.852 billion RMB, with a gross profit of 17 billion RMB and a gross margin of 63.37%. Sales expenses were 4.022 billion RMB, while R&D expenses were 4.175 billion RMB, representing 15.55% of revenue [2][8][19]. - The company reported a GAAP net profit of 7.634 billion RMB and a Non-GAAP net profit of 8.511 billion RMB, with Non-GAAP net profit margin at 31.70% [2][19]. Gaming Business - The gaming segment generated 21.46 billion RMB in revenue, with online gaming revenue at 20.43 billion RMB, reflecting a 9.84% increase year-over-year. Mobile games contributed 16.058 billion RMB, up 19.41%, while PC games saw a 15.15% decline [2][19]. - New game launches such as "射雕" and "世界之外" had limited impact, but existing titles like "逆水寒" and "蛋仔派对" performed well during the Spring Festival [2][19]. Future Outlook - The company expects to gradually recover from the impact of PC gaming adjustments, with Blizzard's return to the Chinese market expected to support this segment [2][19]. - Revenue projections for 2024-2026 are set at 111.9 billion RMB, 126.7 billion RMB, and 138.9 billion RMB, respectively, with Non-GAAP net profits expected to be 34.5 billion RMB, 38.7 billion RMB, and 42.4 billion RMB [2][19][25].

Investment Rating - The report maintains a "Buy" rating for the company with a target price adjusted to HKD 173 / USD 111, reflecting a potential upside of 22% from the current price of HKD 141.5 / USD 94.74 [3][4][12] Core Insights - The company's Q1 2024 revenue reached RMB 26.9 billion, a year-on-year increase of 7.2%, slightly above market expectations. The adjusted net profit was RMB 8.5 billion, up 31.7% year-on-year, also exceeding market forecasts [3][6] - The gaming segment continues to show strong growth, with game revenue at RMB 20.4 billion, a 10% increase year-on-year, driven by popular titles such as "逆水寒" and "蛋仔派对" [3][6] - The company is set to launch several new games in Q3, which are expected to act as catalysts for growth despite recent adjustments to existing games [3][6] Financial Performance Summary - Revenue projections for FY24E have been slightly adjusted downwards by 1% to RMB 111.6 billion, with adjusted net profit forecasted at RMB 33.6 billion [3][6] - The company’s gross margin improved to 63.4%, up 3.9 percentage points year-on-year, while the adjusted net margin increased to 31.7%, up 1.5 percentage points [3][6] - The report outlines a steady growth trajectory with revenue expected to reach RMB 130.1 billion by FY26E, with a compound annual growth rate (CAGR) of 6.5% [6][10]