Ge Long Hui A P P·2025-11-24 02:57Core Viewpoint - Daiwa's research report indicates that NetEase's online gaming revenue for Q3 increased by 12.7% year-on-year, but was 3% lower than market expectations [1] Group 1: Financial Performance - Net profit for the period was largely in line with market expectations, driven by investment income [1] - The sales performance of games remained stable, but the quarter-on-quarter revenue growth was still below expectations [1] Group 2: Revenue Forecast and Ratings - Daiwa has lowered its revenue forecast for NetEase for 2026 to 2027 by 1%, reflecting a decrease in revenue from NetEase Cloud Music live streaming [1] - The firm reiterated a "Buy" rating and raised the target price from HKD 260 to HKD 263 [1] Group 3: Share Buyback and Dividend Policy - Due to limited share buyback activity in the first three quarters of the year, Daiwa expects a 75% quarterly dividend payout ratio in Q4 to achieve an annual payout ratio target of 40% [1]