Core Viewpoint - NetEase (NTES.US) is expected to report its Q2 2025 earnings in mid-August, with performance anticipated to meet expectations driven by stable contributions from games like "Fantasy Westward Journey," "Nirvana in Fire," and "Yanyun Sixteen Sounds" [1] Financial Performance - Citigroup estimates that NetEase's total revenue for Q2 will grow by 11% year-on-year to 28.3 billion RMB, with Non-GAAP net profit projected at 9.46 billion RMB, compared to market forecasts of 28.4 billion RMB and 9.66 billion RMB respectively [1] - Online gaming revenue is expected to increase by 15.2% year-on-year to 23.1 billion RMB [1] Future Outlook - For the second half of the year, with key new titles like "Diablo IV" and "Destiny Rise" entering testing or launch phases, Citigroup anticipates stable gaming revenue momentum, predicting Q3 revenue to grow by 10.6% year-on-year to 28.98 billion RMB, with Non-GAAP net profit reaching 9.5 billion RMB [1] Stock Performance - NetEase's stock price increased by 3.07% to $131.22 in pre-market trading, with Citigroup raising its target price from $156 to $157 while maintaining a "Buy" rating, citing the company's earnings resilience, strong cash flow, and stable dividends [1]

Core Viewpoint - Citigroup's research report indicates that NetEase is expected to announce its Q2 2025 earnings in mid-August, with performance anticipated to meet expectations driven by stable performances from games such as "Fantasy Westward Journey," "Nirvana in Fire," and "Yanyun Sixteen Sounds" [1] Financial Performance Summary - Citigroup estimates that NetEase's total revenue for Q2 will grow by 11% year-on-year to 28.3 billion yuan, with Non-GAAP net profit projected at 9.46 billion yuan, compared to market forecasts of 28.4 billion yuan and 9.66 billion yuan respectively [1] - Online gaming revenue is expected to increase by 15.2% year-on-year to 23.1 billion yuan [1] Future Outlook - Looking ahead to the second half of the year, with key new titles like "Diablo IV" and "Destiny Rising" entering testing or launch phases, Citigroup anticipates stable revenue momentum for gaming, predicting Q3 revenue to grow by 10.6% year-on-year to 28.98 billion yuan, with Non-GAAP net profit reaching 9.5 billion yuan [1] - Citigroup has slightly raised NetEase's US stock target price from $156 to $157, maintaining a "Buy" rating, citing the company's earnings resilience, strong cash flow, and stable dividends [1] Revenue and Profit Forecast Adjustments - Revenue forecasts for 2025 to 2027 have been adjusted down by 2.1%, up by 0.4%, and down by 3.2% respectively, while Non-GAAP net profit forecasts have been adjusted down by 1.7%, up by 1%, and down by 2.8% [1]