NetEase (NTES) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The upward trend in estimate revisions for this internet technology company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between tren ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

HANGZHOU, China, May 26, 2025 /PRNewswire/ -- RBW Inc. (KOSDAQ: 361570), a leading integrated content production company and home to top K-POP acts such as MAMAMOO, ONEUS, ONEWE, and PURPLE KISS, has entered into a strategic copyright partnership with NetEase Cloud Music (HKEX: 9899), one of China's most influential music streaming platforms. This collaboration is set to mark a new chapter in Korea-China music exchange and accelerate K-POP's expansion into the Chinese market.Under this partnership, RBW will ...

Summary of NetEase, Inc. Conference Call Company Overview - **Company**: NetEase, Inc (NTES.O, NTES US) - **Industry**: China Internet and Other Services - **Market Cap**: US$78,716 million - **Stock Rating**: Overweight - **Industry View**: Attractive - **Price Target**: US$138.00, with a 12% upside from the current price of US$122.76 as of May 15, 2025 [8][8][8] Key Points Overseas Expansion Strategy - NetEase has clarified its overseas expansion strategy, focusing on online games while de-emphasizing single-player games, which are seen as culturally specific and a barrier to global expansion [2][4][4] - The preview of the new game "Sea of Remnants" is viewed positively as a strong addition to its game pipeline [2][3] Upcoming Game Releases - Upcoming titles include "Destiny: Rising" and "Marvel Mystic Mayhem," both utilizing existing intellectual properties (IPs), which may result in lower gross profit margins (GPM) due to revenue-sharing agreements [3][3] - The company plans to launch "Where Winds Meet" globally and introduce e-sports for "Marvel Rivals" to boost its popularity [3][3] Financial Outlook - Management expects sales and marketing expenses to stabilize at 13-14% of revenue, recovering from previous volatility linked to "Eggy Party" [6][6] - The industry standard for marketing expenses is 20-25% of new games' annual revenue and 8-10% for existing titles [6][6] Gross Profit Margin (GPM) Concerns - The GPM is a focal point, with discussions around potential declines in revenue-sharing ratios with platforms like iOS and Android being more of an industry-wide issue rather than specific to NetEase [5][5] - NetEase is actively negotiating with platforms to lower costs, maintaining a track record of success in this area [5][5] Impact of AI on Game Development - NetEase has been a pioneer in integrating AI into game development but acknowledges that current AI technology is not yet ready for critical tasks like 3D asset modeling [7][7] - The company plans to reinvest manpower saved through AI into enhancing game quality [7][7] Management Insights - Management provided more visibility on operational expenditure (opex) outlook, indicating a strategic shift towards online gaming development [2][2] Additional Insights - The shift in strategy has led to the shutdown of certain studios, reflecting the company's commitment to its new direction [4][4] - The overall sentiment towards NetEase's future performance remains positive, with analysts expecting attractive growth in the gaming sector [8][8][8]

交银国际研究 消息快报 互联网 2025 年 5 月 21 日 网易 (NTES US) 游戏 520 发布会 9 款新品发布，延续全球、多端、多品类布局 2025 年网易游戏 520 发布会公布 40 多款游戏的新动态，包括 9 款新游，其中 7 款为自研，涉及三国、太空、漫威/命运IP、海洋冒险、派对生活模拟等题材， 以及RPG、SLG、FPS等多种玩法。新游矩阵延续网易风格化路线，并体现全球 化定位、多端布局、多品类探索的策略，尤其对竞技游戏品类的差异化拓展。 老游戏也通过新的玩法、技术更新画面、IP 联动营销，以及构建企划、国际赛 事推动游戏长线运营。看好游戏趋势持续向好，维持目标价 143 美元/223 港元 （9999 HK）及买入评级。 此报告最后部分的分析师披露、商业关系披露和免责声明为报告的一部分，必须阅读。 下载本公司之研究报告，可从彭博信息：BOCM 或 https://research.bocomgroup.com 孙梦琪 mengqi.sun@bocomgroup.com (86) 10 8393 5333 谷馨瑜, CPA connie.gu@bocomgroup.com (86) ...

交银国际研究 消息快报 互联网 2025 年 5 月 21 日 网易 (NTES US) 游戏 520 发布会 9 款新品发布，延续全球、多端、多品类布局 2025 年网易游戏 520 发布会公布 40 多款游戏的新动态，包括 9 款新游，其中 7 款为自研，涉及三国、太空、漫威/命运IP、海洋冒险、派对生活模拟等题材， 以及RPG、SLG、FPS等多种玩法。新游矩阵延续网易风格化路线，并体现全球 化定位、多端布局、多品类探索的策略，尤其对竞技游戏品类的差异化拓展。 老游戏也通过新的玩法、技术更新画面、IP 联动营销，以及构建企划、国际赛 事推动游戏长线运营。看好游戏趋势持续向好，维持目标价 143 美元/223 港元 （9999 HK）及买入评级。 此报告最后部分的分析师披露、商业关系披露和免责声明为报告的一部分，必须阅读。 下载本公司之研究报告，可从彭博信息：BOCM 或 https://research.bocomgroup.com 孙梦琪 mengqi.sun@bocomgroup.com (86) 10 8393 5333 谷馨瑜, CPA connie.gu@bocomgroup.com (86) ...

Group 1 - NetEase (NASDAQ: NTES) reported 1Q25 results with revenue and non-GAAP earnings exceeding consensus expectations, primarily driven by a 15% growth in online games [1] - Revenue was 2.5% above consensus, indicating strong performance in both PC and mobile gaming segments [1] Group 2 - The report highlights the company's ability to deliver better-than-expected results, reinforcing its position in the online gaming market [1]

Investment Rating - The report maintains a "Buy" rating for the company [7][26]. Core Insights - The company's total revenue for Q1 2025 increased by 7% year-on-year to 28.8 billion RMB, exceeding consensus expectations by 1% [1]. - Game and value-added services revenue grew by 12% year-on-year to 24 billion RMB, with PC game revenue significantly outperforming expectations, increasing by 85% year-on-year [1][2]. - The adjusted net profit attributable to shareholders rose by 32% year-on-year to 11.2 billion RMB, surpassing expectations by 19% due to improved expense management [1][4]. Revenue and Profitability - The company expects Q2 and full-year 2025 PC game revenue to grow by 60% and 40% year-on-year, respectively [1]. - The gross margin for game and value-added services improved to 68.8%, driven by the high margin of new game releases [1][4]. - The adjusted net profit forecast for 2025 has been raised to 39.4 billion RMB, reflecting a 4.7% increase from previous estimates [4][22]. Game Releases and Market Performance - The new game "Marvel: Clash" is anticipated to become a long-term revenue generator, with an average of 120,000 concurrent players on Steam in April [1][2]. - The mobile game "Seven Days World" launched globally on April 24, achieving top rankings in 166 countries, although its revenue contribution remains limited [3][15]. - The report highlights the potential of upcoming titles such as "Destiny: Rise" and "Infinite" in the second half of the year [2][3]. Financial Projections - Revenue projections for 2025-2027 have been adjusted upwards by 1%, 2.4%, and 4.2%, respectively, primarily due to increased contributions from PC games [4][22]. - The adjusted net profit for 2026 and 2027 is forecasted to be 42.9 billion RMB and 47.9 billion RMB, respectively, reflecting a growth trajectory [4][22]. - The target price for the company's stock is set at 148.25 USD, corresponding to a 17.2x PE ratio for 2025 [7][26].

Investment Rating - The report assigns a "Buy" rating for the company, NetEase (NTES US), with a target price raised from $124 to $143, indicating a potential upside of 16.5% [1][2][13]. Core Insights - The company's performance in Q1 2025 significantly exceeded expectations, driven by strong game revenue growth and effective cost control. Game revenue increased by 15% year-on-year, contributing to a 32% rise in adjusted net profit [1][6][7]. - The report highlights the positive trends in the gaming sector, with notable contributions from titles such as "Marvel Duel," "Yanyun Sixteen Sounds," and "Identity V." The company plans to enhance its game update cycles and establish a competitive ecosystem to stabilize game metrics [1][6][7]. Financial Performance Summary - **Revenue Projections**: The total revenue for 2025 is projected at RMB 114,279 million, reflecting an 8.5% growth rate. Game and value-added services revenue is expected to reach RMB 93,768 million, with a growth rate of 9.0% [5][14]. - **Profitability Metrics**: The adjusted operating profit for 2025 is forecasted at RMB 41,298 million, with an operating profit margin of 36.1%. The adjusted net profit is projected at RMB 36,899 million, representing a net profit margin of 32.3% [5][14]. - **Quarterly Performance**: In Q1 2025, the company reported a net income of RMB 10,301 million, an 18% increase from the previous quarter, with a net profit margin of 36% [7][8]. Market Position and Trends - The company has a market capitalization of approximately $146.5 billion, with a year-to-date stock price increase of 37.61% [4][14]. - The gaming segment is expected to continue its upward trajectory, with deferred revenue increasing by 16% quarter-on-quarter, setting a solid foundation for future revenue growth [1][6][7].

Investment Rating - The report maintains a "BUY" rating for NetEase, indicating a potential return of over 15% over the next 12 months [19]. Core Insights - NetEase reported strong 1Q25 results with total revenue growing by 7% YoY to RMB28.8 billion, aligning with consensus estimates. Operating profit surged by 37% YoY to RMB10.4 billion, exceeding consensus by 25%, primarily due to disciplined operating expense control, which decreased by 14% YoY [1][2]. - The games business showed a reacceleration in revenue growth, increasing by 12% YoY in 1Q25, supported by a 19% YoY growth in contract liabilities, which is expected to bolster future revenue [1][7]. - The target price for NetEase has been raised to US$136.5 from the previous US$125.5, reflecting a 27.4% upside from the current price of US$107.11 [3][11]. Financial Performance Summary - **Revenue Forecasts**: The revenue for FY25 is estimated at RMB113.1 billion, with projections for FY26 and FY27 at RMB121.1 billion and RMB128.9 billion, respectively [2][8]. - **Profitability Metrics**: Adjusted net profit is expected to reach RMB40.1 billion in FY25, with a growth trajectory continuing into FY26 and FY27 [2][8]. - **Valuation Metrics**: NetEase is currently trading at a P/E ratio of 13.6x for FY25, which is in line with its two-year historical average [7][11]. Business Segment Analysis - **Online Games**: The online games segment is valued at US$121.8 billion, accounting for 89.2% of the total valuation, based on a multiple of 16x 2025E EV/EBIT, consistent with industry averages [11][12]. - **Youdao and Cloud Music**: Youdao is valued at US$0.7 billion, while the Cloud Music business is valued at US$3.8 billion, both based on industry-standard multiples [11][12]. - **Innovative Businesses**: The innovative businesses segment is valued at US$1.6 billion, reflecting a growing diversification strategy [11][12]. Market Position and Growth Drivers - The games business is expected to benefit from several highly anticipated global launches, including titles like MARVEL Mystic Mayhem and Destiny: Rising, which should further enhance revenue growth [7]. - Non-gaming segments are also improving efficiency, with a notable increase in gross profit margin for the Cloud Music segment despite a decline in revenue [7][8]. Share Performance - The market capitalization of NetEase stands at approximately US$67.99 billion, with a 52-week high of US$109.80 and a low of US$76.28 [3][4]. - Over the past month, the stock has seen an absolute increase of 9.3% [4].