Nomura expects NetEase's total revenue for the last quarter to increase by 4% year-on-year, but fall short of market expectations, maintaining a "Buy" rating

AASTOCKS
2026.01.28 02:34

Nomura published a research report indicating that NetEase-S (09999.HK) is expected to see total revenue grow by 4% year-on-year to RMB 27.7 billion (same below) in the last quarter, which is 4% lower than the latest market forecast. During the period, online gaming revenue is expected to be RMB 21.7 billion, up 5.8% year-on-year, but down 5% quarter-on-quarter.

The firm expects NetEase's deferred revenue to remain resilient; gross margin is expected to increase by 3.3 percentage points year-on-year to 64.2%; the gross margin for the online gaming business may continue to expand, growing by 3 percentage points year-on-year to 69.6%; GAAP operating profit margin may increase by 0.2 percentage points to 29.4%; and non-GAAP net profit is expected to decline by 16% to RMB 8.1 billion.

The firm maintains a "Buy" rating for NetEase (NTES.US) on the US stock market, with a target price of $160

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