Research report digger | CICC: maintains a "outperform" rating for Netease with a target price of HK$206, and expects a 6% YoY growth in revenue in the next quarter.
According to a report by Zhongjin, netease's revenue for the second quarter is expected to increase by 6% year-on-year, but decrease by 6% quarter-on-quarter, to 25.3 billion yuan, with market expectations of 26.1 billion yuan. Non-GAAP net income is expected to decline by 16% and 11% year-on-year and quarter-on-quarter, respectively, to 7.6 billion yuan, with market expectations of 7.93 billion yuan, due to a high base period from exchange gains of 1.47 billion yuan in the same period last year. The report pointed out that netease's new game performance in the third quarter was impressive and may restart quarter-on-quarter growth. The user scale of the mobile game "Endless Pampering Only For You" met expectations, and we are bullish on the ability of large DAU products to leverage revenue and the company's ability to expand the level. Considering the delay in the PC version of "Yanyun sixteen tunes" going online, it is slightly lower than expected.
According to Sensor Tower, the overseas revenue of the top 30 mobile games exported in the first half of the year increased by 15% to $4.5 billion.
Starting from the second half of 2023, the overseas mobile game market will return to an upward trend. In the first half of 2024, the combined revenue of overseas mobile games on the App Store and Google Play channels will reach 32.5 billion US dollars.
Hong Kong Stock Concept Tracking | China's overseas mobile games generated more than 7.5 billion US dollars in revenue in the first half of 2023. AI brings cost reduction and efficiency improvement (including concept stocks).
According to SensorTower data, in the first half of 2024, overseas mobile gaming revenue continued the growth trend of the second half of 2023, with a year-on-year increase of 6% in the combined revenue of AppStore and GooglePlay channels, reaching $32.5 billion.
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Maintain a "buy" rating for Netease-S (09999) with a target price of HKD 129, according to Furi.
Currently, "NARAKA: BLADEPOINT" ranks third on the iOS game total revenue chart.
Citi reiterated Netease-S(09999) as the top pick for China's online games industry with a target price of HKD 200.
Morgan Stanley expects netease online games revenue to accelerate growth from the third quarter and revalue its stock price.
