Ge Long Hui·2026-02-13 03:30Core Viewpoint - Daiwa's report indicates that NetEase's online gaming revenue and adjusted earnings per share for Q4 2025 are expected to be 7.0% and 22.8% lower than market consensus respectively [1] Group 1: Financial Performance - Non-GAAP operating profit is only 6% below consensus, but net profit shows a significant discrepancy due to a recorded investment loss of 1.7 billion yuan this quarter [1] - The company maintains a 40% dividend payout ratio for 2025 [1] Group 2: Revenue and Earnings Forecast - Daiwa has lowered NetEase's revenue forecasts for 2026 and 2027 by 4% to 5%, and earnings forecasts by 6% to 7% [1] - The adjustments are primarily due to an extended revenue deferral period and the delay of new game launches to the second half of 2026, leading to a corresponding reduction in gaming revenue forecasts [1] Group 3: Investment Rating - Daiwa reaffirms a "Buy" rating for NetEase but reduces the target price from 263 HKD to 257 HKD [1] - The new target price is based on an 18x multiple of the forecasted net operating profit after tax for gaming in 2026 [1]