In "The Big Bank," Citigroup expects NetEase's mobile game revenue in the third quarter to benefit from a low base and the recovery of popular games, maintaining an "Outperform" rating

Citi released a report indicating that NetEase-S (09999.HK) (NTES.US) had second-quarter results slightly below expectations, with total revenue and adjusted net profit growing year-on-year by 9.4% and 21.9%, reaching RMB 27.9 billion and RMB 9.5 billion, respectively, which were 2% and 1% lower than the bank's estimates. The PC game segment faced a higher comparative base this quarter due to "World of Warcraft," but mobile games are expected to recover to positive growth in the third quarter due to a low base and the resurgence of popular games.

The bank also noted that NetEase launched the role-playing game "Marvel Mystic Mayhem" overseas in June and the shooting game "Rising Destiny" overseas in August. NetEase has over 20 approved games in preparation, with highly anticipated cross-platform games next year including the ACG open-world game "Ananta" and the adventure role-playing game "Sea of Remnants."

The bank essentially maintains its adjusted net profit forecast for the company, with the ADR target price remaining at $140 and a "Outperform" rating