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.
The bank quoted the company as saying that "Yanyun Sixteen Sounds" will be released at the end of this year, and "Marvel Showdown" has received worldwide praise and will be released on December 6. In addition, overseas expansion is a long-term strategy, with three main directions: using its own research and development capabilities on existing overseas intellectual property, promoting self-developed games overseas, and developing new patents through smaller overseas studios. The company will also actively accelerate repurchases and expects stable returns from its shareholders, with upward potential.
Goldman Sachs has given NetEase a "buy" rating, with a target price of HKD 179 for H shares and a target price of USD 115 for US stocks. (vc/u)
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