Zhi Tong Cai Jing·2026-02-24 08:59Core Viewpoint - The report from Kaiyuan Securities indicates strong growth momentum for NetEase (09999), with contract liabilities increasing by 5% to 20.5 billion yuan as of Q4. The company is expected to benefit from the long-term operation of existing games, the launch of new games, and AI-driven enhancements, maintaining a "Buy" rating [1]. Group 1: Game Performance and Revenue - Long-term operations are revitalizing classic games, with "Yan Yun Shi Liu Sheng" showcasing overseas strength and a rich pipeline of products. Revenue from games and related value-added services is projected to reach 22 billion yuan by Q4 2025, a year-on-year increase of 3.4%, with a gross margin of 70.5%, up 3.8 percentage points [2]. - "Dream of the Westward Journey" achieved record high revenue in Q4 and for the entire year of 2025. "Tian Xia" has seen revenue growth for five consecutive years, with expectations of new highs in PCU and paying user numbers after the upgrade in December 2025 [2]. - "Yan Yun Shi Liu Sheng" reached new highs in daily active users and revenue after the anniversary version launch in Q4, topping the iOS game sales chart in mainland China. The game is expected to rank second on Steam's global sales chart after its overseas launch in November 2025, with over 80 million global players by February 11, 2026 [2]. Group 2: New Game Developments - "The Forgotten Sea" adopts a novel "nautical adventure" theme with puppet aesthetics, with approximately 15.34 million pre-registrations as of February 12, 2026, and a TapTap rating of 8.8, expected to launch in Q3 2026 [2]. - The party game "Starry Friends" has received a license and has shown excellent data in its PC beta test, with an expected launch in 2026. Two auto-chess games are in development, with the Chinese-themed "Yao Yao Chess" already licensed [2]. - "Infinite" has met company expectations in January testing data and player feedback, with plans for a global and cross-platform launch [2]. Group 3: Music and AI Business Growth - Cloud Music reported Q4 revenue of 1.97 billion yuan, a year-on-year increase of 5%, with improvements in DAU/MAU and average daily usage time on mobile, driven by quality content expansion [3]. - Youdao's Q4 revenue reached 1.56 billion yuan, up 17% year-on-year, with AI-driven subscription revenue exceeding 100 million yuan, an increase of over 80%. Advertising revenue from AI application marketing grew by over 50%, indicating sustained growth driven by AI education and marketing needs [3].