NTES(09999) 华安证券·2025-02-26 01:55Investment Rating - The report maintains a "Buy" rating for the company [10] Core Insights - The company achieved revenue of 26.75 billion yuan in Q4 2024, a year-over-year decrease of 1.4% but a quarter-over-quarter increase of 2.1%. The gross profit was 16.27 billion yuan, with a gross margin of 60.8%, down 1.2 percentage points year-over-year. Adjusted net profit reached 9.68 billion yuan, reflecting a year-over-year increase of 31.2% and a net margin of 36.2%, up 9.2 percentage points year-over-year [6][10] - The launch of the PC game "Marvel Showdown" on December 6, 2024, significantly boosted user engagement, with over 10 million registered users within 72 hours and a current user base exceeding 40 million. The new game "Yanyun Sixteen Sounds" also performed well, achieving over 3 million downloads in four days and topping the iOS download charts for two weeks [6][10] - The company has a strong pipeline of games, including "Destiny: Rising" and "Marvel Secret Frenzy," which enhances its product matrix and long-term operational capabilities [8] - The profitability of the cloud music and Youdao businesses is improving, with cloud music subscription revenue growing by 22% year-over-year and a gross margin of 33.7%, up 7 percentage points year-over-year. Additionally, Youdao achieved its first annual operating profit due to AI integration [9] Financial Summary - The company’s projected revenues for CY 2025, 2026, and 2027 are 113.44 billion yuan, 122.35 billion yuan, and 132.98 billion yuan, respectively. The projected net profits (Non-GAAP) for the same years are 35.91 billion yuan, 39.16 billion yuan, and 42.96 billion yuan, respectively [10][13] - Key financial metrics include a return on equity (ROE) of 24% in 2024, projected to decline to 18% by 2027. The earnings per share (EPS) is expected to grow from 10.37 yuan in 2024 to 13.40 yuan in 2027 [13][15]