NetEase's Successful Game Strategy: High-Quality Growth in Cloud Music and Youdou Services
NetEase's Successful Game Strategy: High-Quality Growth in Cloud Music and Youdou Services
网易的成功游戏战略：云音乐和优豆服务的高质量增长
- Benchmark analyst Fawne Jiang maintains NetEase Inc (NASDAQ:NTES) with a Buy and raises the price target from $104 to $118.
- The re-rating followed the company's upbeat 1Q23 results.
- Game growth in 1Q reflected the strong performance of Eggy Party on top of the resilience of legacy titles (FWJ and Identify V).
- With multiple games (Badlanders, Racing Master, and Justice Mobile) slated to roll out in June and the international debut of Harry Potter: Magic Awakened this summer, the analyst sees improving visibility on game growth in FY23.
- For non-game segments, NetEase has decided to focus on loss reduction and achieve a cash flow breakeven.
- As a result, the analyst sees a substantial upside in profitability and has raised his FY23 non-GAAP EPADS to $5.53 (vs. $4.62 prior).
- The outperformance of mobile games was underpinned by the strong performance of Eggy Party on top of the resilience of legacy titles.
- The company will likely launch multiple games (Badlanders, Racing Master, and Justice Mobile) in June. In addition, they are planning Harry Potter: Magic Awakened international market debut in the summer.
- With improved visibility on the games' launch schedule and the early success of Eggy Party, the analyst raised his FY23 game growth projection.
- In addition, faster game revenue warrants higher profitability. Consequently, the analyst raised his FY23 gross profit margin for online games.
- For its non-games segments (Cloud Music and Youdou), NTES has focused on high-quality growth by purging low-profit products and services, including reducing revenue sharing on social entertainment.
- Citigroup analyst Alicia Yap maintains NetEase with a Buy and raises the price target from $115 to $118.
- UBS analyst Felix Liu maintains NetEase with a Buy, raising the price target from $112 to $113.
- Price Action: NTES shares traded higher by 5.56% at $90.50 on the last check Friday.
- 基准分析师Fawne酱坚持认为网易(纳斯达克：NTES)与买入，并将目标价从104美元上调至118美元。
- 在重新评级之前，该公司公布了乐观的23季度业绩。
- 第一季度游戏的增长反映了Eggy Party在传统游戏(FWJ和Identity V)的弹性之上的强劲表现。
- 随着多款游戏(巴德兰德人、赛车大师和正义移动)计划于6月份推出，以及《哈利波特：魔力觉醒》今年夏天在国际上的首次亮相，分析师预计23财年游戏增长的可见度将有所提高。
- 对于非游戏细分市场，网易决定专注于减亏，实现现金流盈亏平衡。
- 因此，这位分析师看到了盈利能力的大幅上升，并将23财年非GAAP EPADS上调至5.53美元(之前为4.62美元)。
- 手机游戏的优异表现得益于Eggy Party在传统游戏弹性之上的强劲表现。
- 该公司可能会在6月份推出多款游戏(巴德兰德人、赛车大师和正义移动)。此外，他们还计划在夏季推出《哈利波特：魔法觉醒》国际市场。
- 随着游戏发布时间表的可见度提高，以及Eggy Party的初步成功，这位分析师上调了对2013财年游戏增长的预测。
- 此外，更快的游戏收入保证了更高的盈利能力。因此，这位分析师提高了2013财年在线游戏的毛利率。
- 对于非游戏领域(云音乐和优豆)，NTES通过清理低利润的产品和服务，包括减少社交娱乐的收入分享，专注于高质量的增长。
- 花旗集团分析师Alicia Yap维持网易买入的观点，并将目标价从115美元上调至118美元。
- 瑞银集团分析师菲利克斯·刘(Felix Liu)维持网易的观点，将目标价从112美元上调至113美元。
- 价格行动：在周五的最后一次检查中，NTES的股价上涨了5.56%，达到90.50美元。