NTES(09999) 国信证券·2025-02-22 09:35Investment Rating - The investment rating for the company is "Outperform the Market" [3][4][18] Core Views - The company reported a revenue of 26.7 billion yuan in Q4 2024, a year-on-year decrease of 1%, but achieved a Non-GAAP net profit of 9.7 billion yuan, representing a 31% increase year-on-year [1][6] - The online gaming business showed strong performance with a revenue of 20.5 billion yuan in Q4 2024, a 5% increase year-on-year, driven by significant growth in PC games [10][11] - The company has a robust game pipeline, with expectations for new flagship games like "Yanyun Sixteen Sounds" and the return of "Overwatch" [2][11] Summary by Sections Financial Performance - In Q4 2024, the company achieved a Non-GAAP net profit margin of 36%, up 9 percentage points year-on-year, aided by a foreign exchange gain of 1.54 billion yuan [1][6] - The sales expense ratio decreased to 11%, down 5 percentage points year-on-year, reflecting improved marketing efficiency [1][7] Gaming Segment - The mobile gaming revenue was 13.4 billion yuan, down 11% year-on-year, primarily due to a high base from the previous year, while PC gaming revenue surged to 7.1 billion yuan, up 57% [10][11] - The deferred revenue for the company reached 15.2 billion yuan, a 14% increase year-on-year, indicating strong future revenue potential [10] New Game Releases - "Marvel Showdown" performed exceptionally well, reaching the top of the Steam sales chart within 4 hours of release and accumulating over 40 million players [2][11] - The company anticipates that "Yanyun Sixteen Sounds" will become another flagship game, with a growing audience over time [2][11] Other Business Segments - Youdao's revenue decreased by 10% year-on-year to 1.3 billion yuan, with learning services revenue down 21% due to selective customer acquisition strategies [12] - NetEase Cloud Music reported a revenue of 1.9 billion yuan in Q4 2024, a 5% decline year-on-year, impacted by social entertainment business challenges, but online music revenue grew by 20% in H2 2024 [14][15]