Daiwa Securities released a research report stating that NetEase-S (09999, NTES.US) recorded RMB 22.1 billion in online gaming revenue for the second quarter. Considering the strong performance of multiple games under its portfolio from July to August, along with upcoming new game launches, the firm remains optimistic about the company's profit growth from 2025 to 2027.
The brokerage expects third-quarter gaming revenue to show sequential improvement, primarily driven by major updates to flagship games including "Naraka: Bladepoint" mobile version, "Once Human," and "Identity V." Due to the relatively low base from the second half of last year, Daiwa forecasts that NetEase's third-quarter gaming revenue growth will accelerate to 16.5%.
The firm has raised its target price from HK$235 to HK$260 while maintaining a "Buy" rating.