GLONHUI June 1 丨 Cinda Securities Research Report on May 31 indicates that NetEase - S (9999.HK) Q1 achieved revenue of 25.046 billion yuan, +6.3% year on year and -1.2% month on month, which was better than Bloomberg's unanimous forecast of 24.81 billion yuan. Old games have shown long-term competitiveness. The number of users of the new game “Egg Puff Scouts” is growing strongly, and it has performed well in terms of playability and business ecology. The subsequent launch of popular games is expected to lead NetEase games to start a new round of product cycle. The revenue scale of other businesses is manageable, costs are continuously optimized, and the profit side has improved. AI-related self-developed technical tools helped the company reduce costs and increase efficiency, transforming the idea of “game+AI” into “AI+ gaming.” As of 2023.05.26, according to Bloomberg's unanimous forecast, the company is expected to achieve revenue of 105.261 billion yuan and 116.214 billion yuan in 2023 and 2024, up 9.08% and 10.4% year-on-year. Comparable net profit GAAP is forecast to be 20.605 billion yuan and 22.958 billion yuan respectively, up 1.31% and 11.42%, respectively. Corresponds to PE 18.4 times and 16.5 times.