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
網易的成功遊戲戰略：雲音樂和優豆服務的高質量增長
- 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.
- 基準分析師Fawne醬堅持認為網易(納斯達克：NTES)與買入，並將目標價從104美元上調至118美元。
- 在重新評級之前，該公司公佈了樂觀的23季度業績。
- 第一季度遊戲的增長反映了Eggy Party在傳統遊戲(FWJ和Identity V)的彈性之上的強勁表現。
- 隨著多款遊戲(巴德蘭德人、賽車大師和正義移動)計劃於6月份推出，以及《哈雷波特：魔力覺醒》今年夏天在國際上的首次亮相，分析師預計23財年遊戲增長的可見度將有所提高。
- 對於非遊戲細分市場，網易決定專注於減虧，實現現金流盈虧平衡。
- 因此，這位分析師看到了盈利能力的大幅上升，並將23財年非GAAP EPADS上調至5.53美元(之前為4.62美元)。
- 手機遊戲的優異表現得益於Eggy Party在傳統遊戲彈性之上的強勁表現。
- 該公司可能會在6月份推出多款遊戲(巴德蘭德人、賽車大師和正義移動)。此外，他們還計劃在夏季推出《哈雷波特：魔法覺醒》國際市場。
- 隨著遊戲發佈時間表的可見度提高，以及Eggy Party的初步成功，這位分析師上調了對2013財年遊戲增長的預測。
- 此外，更快的遊戲收入保證了更高的盈利能力。因此，這位分析師提高了2013財年在線遊戲的毛利率。
- 對於非遊戲領域(雲音樂和優豆)，NTES通過清理低利潤的產品和服務，包括減少社交娛樂的收入分享，專注於高質量的增長。
- 花旗集團分析師Alicia Yap維持網易買入的觀點，並將目標價從115美元上調至118美元。
- 瑞銀集團分析師菲利克斯·劉(Felix Liu)維持網易的觀點，將目標價從112美元上調至113美元。
- 價格行動：在週五的最後一次檢查中，NTES的股價上漲了5.56%，達到90.50美元。