Yamato published a research report, predicting that the fourth quarter of NetEase (09999) will benefit from deferred revenue to drive recovery. At the same time, the profit of the online education business is under pressure, but the current stock price is generally reflected, and next year's overseas business and the launch of major games may drive a revaluation. The current valuation is underestimated, reaffirming the “buy” rating, and the target price has risen from 172 yuan to 187 yuan.

According to the report, NetEase's third-quarter revenue rose 27.5%, higher than peers' expectations of 3%. Although mobile game revenue was still below expectations of 5%, performance showed its ability to turn it into profit.