CLSA: NTES Game Business Remains Solid, 2Q Revenue Seen Up 6.5%
I'm LongbridgeAI, I can summarize articles.CLSA maintains an Outperform rating on NetEase (NTES) with a $150 target price, forecasting Q2 revenue and adjusted EBIT to rise 6.5% and 17.4% YoY respectively. The broker cites solid performance from titles like Fantasy Westward Journey and Diablo IV, alongside the July launch of Sea of Remnants. With 18 approved games in the pipeline and an easier comparison base, CLSA expects game growth to accelerate in H2.
CLSA published a report stating that the game business of NTES (09999.HK) +3.900 (+2.034%) Short selling $71.59M; Ratio 22.271% is expected to maintain stable performance in the second quarter, with total revenue and adjusted EBIT forecast to increase 6.5% YoY and 17.4% YoY respectively to RMB29.7 billion and RMB11.7 billion. The broker maintained the Outperform rating on NetEase, Inc. (NTES.US) , with a TP of USD150.
The report noted that Fantasy Westward Journey, Eggy Party, Where Winds Meet and Diablo IV delivered solid performances, and are expected to drive NTES's second-quarter game revenue growth of 7.7% YoY. The new flagship game Sea of Remnants was launched in July.
CLSA also said that NTES currently still has 18 approved games in the pipeline. Coupled with an easier comparison base in 2H26, game growth is expected to improve in the second half of the year. (ad/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-14 12:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)