公司4Q25实现净收入人民币275亿元，同比增长3.0%；调整后净利润71亿元。实质经营保持稳健，递延 收入同比大幅增长34.1%，环比增长5.3%至205亿元，创历史新高。这反映出确认周期较长的游戏收入 占比提升，大量现金流水尚未确认为当期收入，将为后续业绩释放带来很好的支撑。 《遗忘之海》计划今年三季度上线，期待新产品释放周期 智通财经APP获悉，浦银国际发布研报称，由于网易-S(09999,NTES.US))已达到转换至香港主要上市的 要求，公司正与港交所沟通推进相关事宜，未来有望吸引南向资金流入。考虑到公司新游预期上线情 况，调整目标价至236港元/151美元，对应FY26E/FY27E 16.8x/15.2xP/E，公司当前估值具备吸引力，维 持"买入"评级。 浦银国际主要观点如下： 递延收入维持强劲，实质经营稳健 公司4Q25游戏收入同比增长3.4%，端游表现亮眼，收入结构持续优化。主要游戏产品中，《梦幻西 游》端游Q4表现强劲，收入创季度和年度历史新高，其手游亦创年度收入新高，显示出极强的长线运 营韧性；《燕云十六声》全球用户数突破8000万；《漫威争锋》获得多个全球奖项。公司游戏产品全球 影响 ...

《遗忘之海》计划今年三季度上线，期待新产品释放周期 公司4Q25游戏收入同比增长3.4%，端游表现亮眼，收入结构持续优化。主要游戏产品中，《梦幻西 游》端游Q4表现强劲，收入创季度和年度历史新高，其手游亦创年度收入新高，显示出极强的长线运 营韧性；《燕云十六声》全球用户数突破8000万；《漫威争锋》获得多个全球奖项。公司游戏产品全球 影响力持续提升，该行预计公司未来海外收入占比将逐步提升，成为重要增量贡献。展望2026年，《遗 忘之海》计划Q3上线，近期测试反馈积极，该行预计有望在暑期档上线；《无限大》1月封测数据符合 预期，产品仍处于打磨阶段，希望实现全球全平台同步上线。随着新产品临近，公司有望在今年下半年 进入新一轮释放周期。 浦银国际发布研报称，由于网易-S(09999,NTES.US))已达到转换至香港主要上市的要求，公司正与港交 所沟通推进相关事宜，未来有望吸引南向资金流入。考虑到公司新游预期上线情况，调整目标价至236 港元/151美元，对应FY26E/FY27E16.8x/15.2xP/E，公司当前估值具备吸引力，维持"买入"评级。 浦银国际主要观点如下： 递延收入维持强劲，实质经营稳健 公司4 ...

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 236, representing a potential upside of 21% from the current price of HKD 195 [5][26]. Core Insights - The company reported a net revenue of RMB 27.5 billion for Q4 2025, a year-on-year increase of 3.0%, which was below market expectations of 4.7%. Adjusted net profit decreased by 26.9% year-on-year, also falling short of market expectations [1]. - Deferred revenue showed strong growth, increasing by 34.1% year-on-year and 5.3% quarter-on-quarter to reach RMB 20.5 billion, indicating a robust operational performance despite revenue pressures [1]. - The upcoming game "Forgotten Sea" is expected to launch in Q3 2026, with positive feedback from recent tests, suggesting a new product release cycle that could enhance future performance [2]. - The company is focusing on integrating AI into its gaming products, which is expected to improve efficiency and commercial value [3]. - The company is in discussions to transition to a primary listing in Hong Kong, which may attract more southbound capital [3]. Financial Summary - For FY26E, the company is projected to achieve a revenue of RMB 120.3 billion, with an adjusted net profit of RMB 39.8 billion, reflecting a growth rate of 6.8% [8]. - The adjusted P/E ratios are forecasted to be 16.8x for FY26E and 15.2x for FY27E, indicating an attractive valuation [3][8]. - The company’s total market capitalization is approximately HKD 596.2 billion, with an average daily trading volume of HKD 1.287 billion over the past three months [5].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 236, representing a potential upside of 21% from the current price of HKD 195 [5][26]. Core Insights - The company reported a net revenue of RMB 27.5 billion for Q4 2025, a year-on-year increase of 3.0%, which was below market expectations of 4.7%. Adjusted net profit decreased by 26.9% year-on-year, also falling short of market expectations [1]. - Deferred revenue showed strong growth, increasing by 34.1% year-on-year and 5.3% quarter-on-quarter to reach RMB 20.5 billion, indicating a robust operational performance despite revenue pressures [1]. - The upcoming game "Forgotten Sea" is expected to launch in Q3 2026, with positive feedback from recent tests, potentially marking the start of a new product release cycle [2]. - The company is focusing on integrating AI into its gaming products, enhancing production efficiency and commercial value [3]. - The company is in discussions to transition to a primary listing in Hong Kong, which may attract more southbound capital inflow [3]. Financial Summary - For FY26E, the company is projected to achieve a revenue of RMB 120.3 billion, with an adjusted net profit of RMB 39.8 billion, reflecting a growth rate of 6.8% in revenue and 3.4% in net profit [8][9]. - The adjusted target P/E ratios are forecasted at 16.8x for FY26E and 15.2x for FY27E, indicating an attractive valuation [3][8].

Core Viewpoint - NetEase reported Q4 2025 revenue of 27.5 billion yuan (yoy +3.0%, qoq -3.2%) and adjusted net profit of 7.1 billion yuan (yoy -26.9%, qoq -25.3%). For the full year, total revenue reached 112.6 billion yuan (yoy +6.9%) and net profit was 33.8 billion yuan (yoy +13.7%), indicating stable annual growth. The product pipeline for 2026 is robust, featuring major titles like "Infinite" and "A Glimpse of the Sea," which will drive future growth. The company has deeply integrated AI across its gaming, music, and education sectors, establishing an industry-leading AI industrialization barrier [1]. Main Business - Revenue from games and related value-added services was 22.0 billion yuan (yoy +3.8%, qoq -5.7%), with a gross margin increase to 70.5%. - Youdao generated revenue of 1.6 billion yuan (yoy +16.8%), primarily driven by increases in online marketing and learning service revenues. - NetEase Cloud Music reported revenue of 2.0 billion yuan (yoy +4.7%), with gross margin improving by 2.8 percentage points to 34.7%, indicating ongoing profitability enhancement. - Innovative and other businesses generated revenue of 2.0 billion yuan (yoy -10.4%). - Q4 gross profit was 17.7 billion yuan (yoy +8.7%), with an overall gross margin of 64.2% (yoy +3.4 percentage points, qoq +0.7 percentage points). - Operating expenses for Q4 totaled 9.4 billion yuan, showing a year-on-year increase. R&D investment for 2025 reached 17.7 billion yuan, marking the sixth consecutive year exceeding 10 billion yuan. The company has integrated AI throughout its business chain, achieving efficiency improvements of up to 300% in certain production processes [2]. Profit Forecast - The company is expected to achieve revenues of 119.4 billion yuan and 127.0 billion yuan in 2026 and 2027, respectively, with year-on-year growth of 6.1% and 6.4%. - Projected net profits for the same years are 36.6 billion yuan and 39.9 billion yuan, maintaining a "buy" rating [3].

Investment Rating - The investment rating for the company is "Outperform the Market" [5][23] Core Insights - The company's revenue increased by 3% year-on-year in Q4 2025, reaching 27.5 billion yuan, while the Non-GAAP net profit decreased by 11% to 7.07 billion yuan due to investment losses of 1.7 billion yuan [10][11] - The deferred revenue grew by 34% year-on-year, indicating a healthy cash flow status and reflecting changes in the game structure [2][15] - The company continues to expand its global presence, with successful launches of mobile games like "逆水寒" and "燕云十六声," which have attracted over 80 million players globally [2][18] Revenue and Profitability - In Q4 2025, the online gaming business generated 21.3 billion yuan, a 4% increase year-on-year, while the overall gross margin improved to 64.2%, up 3 percentage points [10][11] - The total operating expense ratio was 34%, with a sales expense ratio of 14%, reflecting a 4% year-on-year increase [11] Game Development and AI Impact - The company is focusing on integrating AI tools to enhance creative content, with a shift in the core barriers to entry for commercial games towards integration capabilities [3][18] - Upcoming game releases include "遗忘之海" and "无限大," which are expected to contribute to future revenue growth [23] Financial Forecast - The adjusted net profit estimates for 2025, 2026, and 2027 are 40.6 billion, 44.7 billion, and 48 billion yuan respectively, with slight downward adjustments of 5%, 4%, and 0% [23][28]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][23] Core Insights - The company's revenue increased by 3% year-on-year in Q4 2025, reaching 27.5 billion yuan, while the non-GAAP net profit decreased by 11% to 7.07 billion yuan due to investment losses of 1.7 billion yuan [1][10] - The deferred revenue grew by 34% year-on-year, indicating a healthy cash flow status and reflecting changes in the game structure [2][15] - The company continues to expand its global presence, with successful launches of games like "逆水寒" and "燕云十六声," which have attracted over 80 million players globally [2][18] - AI tools are expected to lower production costs in gaming, but the integration of AI with complex game systems requires deep design and operational experience, creating a barrier for new entrants [3][18] - The company anticipates a rise in subscription revenue for its music service, with a projected increase in user growth and average revenue per user (ARPPU) in 2026 [4][20] Financial Summary - For 2025, the company forecasts adjusted net profits of 40.6 billion yuan, 44.7 billion yuan in 2026, and 48 billion yuan in 2027, with slight downward adjustments of 5% and 4% for the first two years [5][23] - The projected revenue for 2025 is 112.63 billion yuan, with a growth rate of 7% [5][28] - The company expects a gross margin of 64% for 2025, with an EBIT margin of 32% [28]

Core Insights - NetEase reported a robust financial performance for the fourth quarter and the entire year of 2025, achieving a revenue of 112.6 billion yuan, with its core gaming business demonstrating resilience, particularly with "Dream of the Red Chamber" achieving a quarterly revenue record after 23 years of operation [1] AI Strategy - The management emphasized that while generative AI lowers the entry barrier for game development, it raises the success threshold for top-tier products, shifting the competitive barrier from production capacity to integration capability [3][4] - High-quality private data is deemed more important than computational power, and the application of AI in specific business scenarios is prioritized over the scale of parameters [4] - By 2025, NetEase plans to deploy its AI-native pipeline across various stages of game development, achieving efficiency improvements of up to 300% in certain areas [4] Globalization and Product Success - "Yan Yun Sixteen Sounds," an open-world game, achieved significant global success, ranking second on Steam's global sales chart and topping the iOS download charts in over 60 markets, with over 80 million global users [5] - The success is attributed to the maturity of "Chinese stories, international expression," showcasing that localized cultural content can compete globally if the expression resonates with contemporary player aesthetics [5] Evergreen Game Strategy - "Dream of the Red Chamber" has defied typical industry trends by achieving a quarterly revenue high after 23 years, demonstrating a "counter-cyclical" growth strategy [6] - The management detailed a strategy for revitalizing classic gameplay while optimizing user experience and economic systems to engage both new and existing players [6] New Category Innovations - NetEase is advancing in new game categories, with anticipated releases like "Infinite" and "Forgotten Sea," the latter expected to launch in Q3 2026 [7] - The company is also exploring the auto-chess genre with a unique cultural angle based on Chinese mythology, aiming to differentiate itself in a crowded market [7]

Core Viewpoint - The report from CICC maintains the Non-GAAP net profit forecast for NetEase-S (09999) for 2027, with a target price of HKD 265 / USD 171, indicating an upside potential of 36% / 38% for Hong Kong and US stocks respectively [2][8]. Revenue and Growth - Deferred revenue showed significant growth, with a net increase of CNY 1.04 billion in Q4 2025, exceeding market expectations, suggesting potential revenue release in the future [3][9]. - Game and related value-added service revenue increased by 3% year-on-year in Q4 2025, driven by stable operations of long-standing IPs like "Dream of the Red Chamber" and contributions from "Yanyun Sixteen Sounds" and "Marvel Showdown" [3][9]. - Youdao's revenue grew by 17%, reflecting the effective implementation of its AI-driven strategy, while Cloud Music revenue increased steadily by 5% [3][9]. Profitability and Cost Management - The gross margin improved to 64.2% in Q4 2025, indicating strong cost control capabilities [4][9]. - The absolute amount of operating expenses met expectations, with the sales expense ratio rising to 14%, aligning with the overall marketing investment strategy [4][9]. Shareholder Returns - The dividend for Q4 2025 was USD 1.16 per ADS, with a payout ratio of 83%, maintaining an annual dividend ratio of around 40% [5][9]. - The company has extended its share repurchase program (up to USD 5 billion) until January 2029, having repurchased approximately USD 2 billion by the end of 2025 [5][9].

Core Insights - NetEase reported a total revenue of 112.6 billion yuan for the year 2025, representing a year-on-year growth of approximately 7% [1] - The Non-GAAP net profit attributable to shareholders for 2025 was 37.3 billion yuan, an increase of 11.3% year-on-year [1] - In Q4 2025, the company achieved a revenue of 27.5 billion yuan, a 3% increase year-on-year, but the net profit attributable to shareholders decreased to 6.2 billion yuan from 8.8 billion yuan in the same period last year [1] Gaming Business - The gaming and related value-added services generated a net income of 92.1 billion yuan for the year, accounting for 81.8% of total revenue [1] - Online gaming net income reached 89.6 billion yuan, marking an 11% year-on-year growth, driven by classic titles like "Fantasy Westward Journey" and new releases such as "The Legend of Yan Yun" and "Marvel Contest of Champions" [1] - "The Legend of Yan Yun" has surpassed 80 million global users, and Blizzard's games returning to the Chinese market have set new annual revenue records [1] Other Business Segments - NetEase Youdao achieved a revenue of 5.9 billion yuan for the year, marking its first year of positive operating profit and cash flow [1] - NetEase Cloud Music reported a revenue of 7.8 billion yuan, slightly down from 8 billion yuan in 2024 [1] - The innovation and other business segment generated a revenue of 6.8 billion yuan [1] - The company's R&D investment reached 17.7 billion yuan, exceeding 10 billion yuan for six consecutive years [1] Financial Performance - For the year 2025, NetEase's operating profit was 35.8 billion yuan, reflecting a year-on-year increase of 21%, with a gross margin of 64.29% [2] - As of the end of 2025, the company had a net cash balance of 163.5 billion yuan and a net cash inflow from operating activities of 50.7 billion yuan [2] - The board announced an extension of the $5 billion stock repurchase plan until 2029, with approximately $2 billion repurchased by the end of 2025 [2] Market Challenges - NetEase is currently facing valuation pressure, with concerns regarding slowing growth in gaming revenue and high base profit margins for Q4 2025 and Q1 2026 [2] - The CEO emphasized that AI has become a core capability in their R&D and operations, systematically applied in game development and gameplay innovation [2]