Ge Long Hui·2026-02-04 06:32Core Viewpoint - Goldman Sachs indicates that recent pressure on NetEase's stock price may stem from market concerns regarding slowing game revenue growth, high profit margin comparisons for Q4 2025 and Q1 2026, and potential impacts from the Genie 3/AI game creation tool [1] Group 1: Financial Performance Expectations - For the upcoming Q4 2025 earnings report, Goldman Sachs expects NetEase's online gaming revenue to grow by 9% year-on-year and adjusted EBIT to increase by 10% year-on-year [1] - The stock is currently trading at a forecasted 2026 price-to-earnings ratio of 14 times, which is below its historical average over the past five years, suggesting limited room for further valuation multiple declines [1] Group 2: Revenue and Profit Forecast Adjustments - Goldman Sachs has slightly reduced its revenue forecasts for NetEase from 2025 to 2027 by approximately 1% to reflect a pipeline skewed towards the second half of this year and next year [1] - The firm has also lowered its profit estimates for the same period by about 3% due to anticipated slower profit margin expansion against a high base [1] Group 3: Ratings and Price Targets - Goldman Sachs reaffirms its "Buy" rating on NetEase, with a minor reduction in the target price for H-shares from HKD 266 to HKD 264, and for U.S. shares from USD 170 to USD 169 [1]