Goldman Sachs: Rated netease as "buy" with a target price of HK$179.
The company will also actively accelerate repurchase and is expected to provide stable returns to shareholders with potential for upward growth.
Goldman Sachs quoted Netease (09999.HK) as saying that the revenue of the PC version of "Dream Journey to the West" has stabilized, but "Revelation" is under pressure due to its high base.
Goldman Sachs research report quotes Netease (09999.HK) management as saying that the performance of "Fantasy Westward Journey" on PC continues to stabilize, the user engagement of "Endless War" meets expectations, "Once Human" and the return of Blizzard to the mainland will contribute to third-quarter earnings, but "Nishuihan" will face pressure on year-on-year revenue growth due to its high base. The company's expenditure ratio is expected to remain roughly the same.
Netease-S (09999.HK): The stock games remain resilient, but the exchange rate gains and losses have dragged down the current profit performance; pay attention to the follow-up product line.
Netease achieved revenue of 25.486 billion yuan in Q2 24 (yoy +6.14%, qoq -5.08%), with gaming and related value-added services revenue of 20.056 billion yuan (yoy +6.69%, qoq -6.54%); Youdao business revenue was 1.322 billion yuan (yoy +9.5%); Innovation and other business revenue was 2.067 billion yuan (yoy +0.48%); Cloud music business revenue was 2.041 billion yuan (yoy +4.74%).
Hang Seng Index rose 167 points in the morning, with gains from Meituan and Xiaomi. Mainland real estate and pharmaceutical stocks also went up.
The market anticipates a rate cut in the United States next week, with the Dow rising 235 points or 0.6% overnight, and the Nasdaq rising 1%. Hong Kong stocks rose in early trading, with the Hang Seng opening 57 points higher. It briefly rose 300 points to 17,542 points and rose 167 points or 1% by midday, closing at 17,408 points. The HSCI rose 25 points or 0.7% to 3,501 points. The total turnover of the market reached 51.979 billion yuan in the first half of the day.
"Da Hang" china merchants securities' forecast of shareholder returns for Chinese internet stocks in the next 12 months (table)
China Merchants Securities released a report stating the predicted comparison of shareholder returns for Chinese Internet stocks in the next 12 months: Stock│Predicted Share Buyback Amount│Expected Share Buyback Yield│Dividend Yield│Total Yield Vipshop (VIP.US)│0.72 billion USD│10.4%│4.2%│14.6% JD.com (09618.HK)│2 billion USD│4.8%│3.5%│8.2% Alibaba (09988.HK)│12 billion USD│5.9%│1.2%│7.2% Netease (09999.HK)│0.6 billion USD│1.2%│3.4%│4
China Merchants Securities: The leading Internet platform shows resilience in the macro headwinds, with Tencent, Alibaba, and "B Station" as the top choices.
China Merchants Securities International released a report stating that although the overall stock market has been weak recently, the stock prices of leading mainland internet platforms have demonstrated resilience, attributed to the improvement of the competitive environment and the enhancement of profit prospects. After this quarter's performance, companies with larger declines are still worth paying attention to, such as PDD Holdings (PDD.US), Tencent Music (TME.US), and Netease (NTES.US). These companies still possess attractiveness in terms of business strength, market position, and valuation. The bank pointed out that the overall market position and profit capabilities of the leading mainland internet platforms are still solid. Preferred industry: Tencent (00700.HK).