NTES(NTES) 交银国际证券·2024-11-15 06:18Investment Rating - The report maintains a "Buy" rating for the company with a target price of USD 113.00, indicating a potential upside of 34.2% from the current closing price of USD 84.22 [1][4][7]. Core Insights - The company's strong performance in PC games is expected to drive revenue growth in 2025, with a projected 10% increase in game revenue. Mobile games are anticipated to stabilize, aided by the high base effect and the influence of "Hearthstone" [1]. - The third quarter saw a 4% year-over-year decline in total revenue, aligning with Bloomberg consensus expectations, while game revenue decreased by 1%. The adjusted net profit fell by 13% year-over-year due to foreign exchange losses [1][5]. - The company has a promising lineup of new game releases scheduled for late 2024 and 2025, including "Yanyun Sixteen Sounds" and "Marvel Showdown," which are expected to contribute positively to future revenue [2]. Financial Forecast Adjustments - Total revenue forecasts for 2024, 2025, and 2026 have been slightly adjusted downwards, with expected revenues of RMB 105,532 million, RMB 115,647 million, and RMB 127,046 million respectively, reflecting changes of -0.2%, -0.7%, and -1.0% [3]. - The adjusted operating profit margin is projected to be 30.9% for 2024, with a slight decrease from previous estimates [3][6]. - The adjusted net profit for 2024 is forecasted at RMB 31,509 million, with a net profit margin of 29.9% [3][6].