智通财经网·2026-02-12 02:20Core Viewpoint - The report from CICC maintains the 2027 Non-GAAP net profit forecast for NetEase-S (09999), with target prices set at HKD 265 and USD 171, indicating an upside potential of 36% and 38% for Hong Kong and US stocks respectively [1] Group 1: Revenue and Growth - Quarterly deferred revenue shows high growth, with a net increase of CNY 1.04 billion in Q4 2025, better than market expectations, indicating potential revenue release in the future [2] - Revenue from games and related value-added services increased by 3% year-on-year in Q4 2025, driven by stable operations of long-standing IPs like "Fantasy Westward Journey" and contributions from new titles [2] - Youdao's revenue grew by 17%, reflecting the effective implementation of its AI-driven strategy, while Cloud Music's revenue increased steadily by 5% [2] Group 2: Profitability and Cost Management - The gross margin improved to 64.2% in Q4 2025, demonstrating the company's cost control capabilities [3] - The absolute amount of operating expenses met expectations, with the sales expense ratio rising to 14%, aligning with the overall marketing investment strategy [3] Group 3: Shareholder Returns - The dividend for Q4 2025 was USD 1.16 per ADS, with a dividend payout ratio of 83%, maintaining an annual dividend ratio of around 40% [4] - The company has extended its share repurchase program (up to USD 5 billion) until January 2029, having repurchased approximately USD 2 billion by the end of 2025 [4]