Core Viewpoint - CICC maintains a "outperform industry" rating for NetEase Youdao, setting a target price of $13, highlighting the company's strong performance in Q2 2025 with both revenue and profit exceeding expectations due to accelerated AI commercialization and effective business structure optimization [1] Financial Performance - In Q2 2025, Youdao's net revenue reached 1.42 billion yuan, representing a year-on-year growth of 7.2%, surpassing market expectations [1] - The Non-GAAP net profit attributable to the parent company was 12.52 million yuan [1] - Operating profit recorded was 28.8 million yuan, an increase of 7.5 percentage points year-on-year, marking the first time the company achieved profitability in the same period [1]