NTES(NTES) 交银国际·2025-01-20 10:28Investment Rating - The report maintains a "Buy" rating for the company, with a target price raised to 99.31 [2][3][4]. Core Insights - The company is expected to see accelerated growth in PC games and stable performance in mobile games, leading to a double-digit growth in overall gaming revenue for the year [3][8]. - Revenue and profit forecasts for 2025 have been adjusted upwards by 1% and 3% respectively, reflecting better-than-expected performance from new game releases [3][8]. - The anticipated growth in PC games is driven by new titles such as "Marvel's Contest of Champions," which is expected to contribute significantly to revenue [8][9]. Financial Forecasts - The updated revenue projections for 2024E and 2025E are RMB 106,289 million and RMB 116,667 million, respectively, reflecting growth rates of 2.7% and 9.8% [7][9]. - The adjusted net profit for 2025 is projected to be RMB 35,081 million, with a net profit margin of 30.1% [7][9]. - The report highlights a significant increase in the number of players for new games, with "Marvel's Contest of Champions" reaching over 20 million players shortly after launch [8][9]. Market Performance - The company's stock has shown a year-to-date increase of 11.32%, with a 52-week high of 76.28 [6][9]. - The average daily trading volume is reported at 1.91 million shares, indicating active market participation [6][9]. Valuation Metrics - The target price is based on a 17x price-to-earnings ratio for 2025, with an expected adjusted operating profit growth rate of 17% [3][9]. - The report indicates a projected gross profit margin of 62.4% for 2024E, slightly decreasing to 61.4% in 2025E [7][9].