Market Likely Overly Optimistic on NetEase's 2Q Results -- Market Talk

Dow Jones

Jul 17

0336 GMT - The market is likely overly bullish on NetEase's 2Q results after the strong 1Q beat, Nomura analysts say in a research note. They project 2Q revenue for NetEase's online gaming and value-added services segment to have risen 12% on year, below consensus expectations for 17% growth. Revenue growth for NetEase's 2Q PC gaming revenue may have slowed to a forecast 62% from 1Q's 85% due to normalized performance of the two recent new titles, "Marvel Rivals" and "Where Winds Meet," the analysts say. However, NetEase's margins likely improved further due to expanded gross profit margin for the nongaming business, they add. Nomura maintains a buy call on NetEase and raises its H-share target price to HK$242.00 from HK$233.00. Shares are last at HK$208.20. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

July 16, 2025 23:36 ET (03:36 GMT)

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They project 2Q revenue for NetEase's online gaming and value-added services segment to have risen 12% on year, below consensus expectations for 17% growth. Revenue growth for NetEase's 2Q PC gaming revenue may have slowed to a forecast 62% from 1Q's 85% due to normalized performance of the two recent new titles, \"Marvel Rivals\" and \"Where Winds Meet,\" the analysts say. However, NetEase's margins likely improved further due to expanded gross profit margin for the nongaming business, they add. Nomura maintains a buy call on NetEase and raises its H-share target price to HK$242.00 from HK$233.00. Shares are last at HK$208.20. (sherry.qin@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  July 16, 2025 23:36 ET (03:36 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Market Likely Overly Optimistic on NetEase's 2Q Results -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMarket Likely Overly Optimistic on NetEase's 2Q Results -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-07-17 11:36</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0336 GMT - The market is likely overly bullish on <a href=\"https://laohu8.com/S/NTES\">NetEase</a>'s 2Q results after the strong 1Q beat, <a href=\"https://laohu8.com/S/NMR\">Nomura</a> analysts say in a research note. They project 2Q revenue for NetEase's online gaming and value-added services segment to have risen 12% on year, below consensus expectations for 17% growth. Revenue growth for NetEase's 2Q PC gaming revenue may have slowed to a forecast 62% from 1Q's 85% due to normalized performance of the two recent new titles, \"Marvel Rivals\" and \"Where Winds Meet,\" the analysts say. However, NetEase's margins likely improved further due to expanded gross profit margin for the nongaming business, they add. Nomura maintains a buy call on NetEase and raises its H-share target price to HK$242.00 from HK$233.00. Shares are last at HK$208.20. (sherry.qin@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  July 16, 2025 23:36 ET (03:36 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1152091168.USD","symbol_name":"UBS (LUX) EQUITY FUND - CHINA OPPORTUNITY (USD) \"PM\" INC","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2552772091","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2552772091","pubTimestamp":1752723360,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0336 GMT - The market is likely overly bullish on NetEase's 2Q results after the strong 1Q beat, Nomura analysts say in a research note. They project 2Q revenue for NetEase's online gaming and value-added services segment to have risen 12% on year, below consensus expectations for 17% growth. Revenue growth for NetEase's 2Q PC gaming revenue may have slowed to a forecast 62% from 1Q's 85% due to normalized performance of the two recent new titles, \"Marvel Rivals\" and \"Where Winds Meet,\" the analysts say. However, NetEase's margins likely improved further due to expanded gross profit margin for the nongaming business, they add. Nomura maintains a buy call on NetEase and raises its H-share target price to HK$242.00 from HK$233.00. Shares are last at HK$208.20. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1152091168.USD":"UBS (LUX) EQUITY FUND - CHINA OPPORTUNITY (USD) \"PM\" INC","LU1807302812.USD":"UBS (LUX) EQUITY SICAV ALL CHINA \"P\" (USD) ACC","LU1993786604.SGD":"UBS (LUX) EQUITY SICAV ALL CHINA \"P\" (SGD) ACC","LU0502904849.HKD":"FIDELITY FUNDS  CHINA INNOVATION \"A\" (HKD) ACC","IE00B0169L03.USD":"FSSA ASIA FOCUS FUND \"I\" (USD) ACC","LU1734074674.USD":"NINETY ONE GSF ASIA PACIFIC FRANCHISE \"A\"(USD) ACC","IE0003851619.USD":"BNY MELLON ASIAN EQUITY \"B\" (USD) ACC","LU1960683339.HKD":"UBS (LUX) EQUITY SICAV ALL CHINA \"P\" (HKD) ACC","BK4505":"高瓴资本持仓","LU0067412154.USD":"UBS (LUX) EQUITY FUND -  CHINA OPPORTUNITY \"P\" (USD) ACC","LU0593848301.USD":"未来资产亚洲卓越消费股票基金A","LU0828237510.HKD":"SCHRODER ISF BIC (BRAZ IN CH)\"A\" (HKD) ACC","IE00B031J352.USD":"FSSA GREATER CHINA GROWTH \"I\" (USD) INC","BK4588":"碎股","BK4548":"巴美列捷福持仓","SG9999014674.SGD":"Nikko AM All China Equity A SGD","LU0455707207.USD":"FIDELITY FUNDS  CHINA INNOVATION \"A\" (USD) INC","IE0003795394.USD":"BNY MELLON ASIAN EQUITY \"A\" (USD) ACC","LU0051755006.USD":"摩根大通中国A (dist)","LU0994945656.USD":"NINETY ONE GSF GLOBAL FRANCHISE \"A\" (USD) INC 2","LU0370786039.SGD":"Fidelity Greater China A-SGD","LU0594300419.USD":"富达中国消费基金A","LU0072913022.USD":"UBS (LUX) EQUITY FUND -  GREATER CHINA \"P\" (USD) ACC","IE0008368742.USD":"首域中国增长基金I Acc","LU1880383440.USD":"AMUNDI FUNDS CHINA EQUITY \"A2\" (USD) INC","LU1023057109.AUD":"BGF CHINA \"A2\" (AUDHDG) ACC","LU1808992512.USD":"AB ALL CHINA EQUITY PORTFOLIO \"A\" (USD) ACC","LU0540923850.HKD":"ALLIANZ HONG KONG EQUITY \"A\" (HKD) INC","09999":"网易-S","LU0192582467.USD":"SCHRODER ISF ASIAN EQUITY YIELD \"A\" (USD) INC MF","LU0594300179.USD":"FIDELITY CHINA CONSUMER \"A\" (USD) ACC","LU0417516902.SGD":"Allianz China Equity Cl AT Acc SGD","LU0149721374.USD":"HSBC GIF HONG KONG EQUITY \"AD\" INC","LU0231483743.USD":"abrdn SICAV I - ALL CHINA SUSTAINABLE EQUITY \"A\" (USD) ACC","IE0009570106.USD":"FSSA ASIA OPPORTUNITIES \"I\" (USD) ACC","K3MD.SI":"NTES ADR US$+","LU0348825331.USD":"ALLIANZ CHINA EQUITY \"A\" (USD) INC","IE00BGHQDM52.EUR":"GUINNESS ASIAN EQUITY INCOME \"C\" (EUR) ACC","LU0426412945.USD":"NINETY ONE GSF GLOBAL FRANCHISE \"A\" (USD) ACC","LU0164865239.USD":"HSBC GIF CHINESE EQUITY \"AC\" (USD) ACC","BK4531":"中概回港概念","LU1226288253.USD":"UBS (LUX) KEY SELECTION SICAV - CHINA ALLOCATION  OPPORTUNITY (USD) \"P\" (USD) INC","LU1770034418.SGD":"ALL CHINA EQUITY \"A\" (SGDHDG) ACC","HK0000320223.HKD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (HKD) ACC","NTES":"网易","BK4585":"ETF&股票定投概念","LU0106959298.USD":"UBS (LUX) EQUITY FUND - EMERGING MARKETS SUSTAINABLE LEADERS (USD) \"P\" (USD) ACC","LU0463099449.HKD":"SCHRODER ISF CHINA OPPORTUNITIES \"A\" (HKD) ACC","IE0031814852.USD":"FSSA GREATER CHINA GROWTH \"I\" (USD) ACC","LU1043141396.HKD":"NINETY ONE GSF GLOBAL FRANCHISE \"A\" (HKD) ACC"},"translate_title":"市场可能对网易第二季度业绩过于乐观——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"K3MD.SI":0.9,"NTES":1,"09999":1},"content_text":"0336 GMT - The market is likely overly bullish on NetEase's 2Q results after the strong 1Q beat, Nomura analysts say in a research note. They project 2Q revenue for NetEase's online gaming and value-added services segment to have risen 12% on year, below consensus expectations for 17% growth. Revenue growth for NetEase's 2Q PC gaming revenue may have slowed to a forecast 62% from 1Q's 85% due to normalized performance of the two recent new titles, \"Marvel Rivals\" and \"Where Winds Meet,\" the analysts say. However, NetEase's margins likely improved further due to expanded gross profit margin for the nongaming business, they add. Nomura maintains a buy call on NetEase and raises its H-share target price to HK$242.00 from HK$233.00. Shares are last at HK$208.20. (sherry.qin@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  July 16, 2025 23:36 ET (03:36 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"dataReport","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}