--- title: "In \"The Big Banks,\" Citigroup expects NetEase's adjusted EBIT in the third quarter to rise by 24%, with a rating of \"Outperform.\"" type: "News" locale: "zh-HK" url: "https://longbridge.com/zh-HK/news/264559136.md" description: "Citi expects NetEase's adjusted EBIT for the third quarter to grow by 24%, with total revenue expected to increase by 12%, reaching RMB 29.4 billion. Online game revenue is projected to grow by 16.6% year-on-year, mainly driven by the recovery of mobile games and strong performance in PC games. NetEase has 17 approved games and is expected to achieve double-digit growth by 2025. Citi has set a target price of $140 for NetEase's ADR, with a rating of \"Outperform.\"" datetime: "2025-11-06T04:30:20.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/264559136.md) - [en](https://longbridge.com/en/news/264559136.md) - [zh-HK](https://longbridge.com/zh-HK/news/264559136.md) --- > 支持的語言: [简体中文](https://longbridge.com/zh-CN/news/264559136.md) | [English](https://longbridge.com/en/news/264559136.md) # In "The Big Banks," Citigroup expects NetEase's adjusted EBIT in the third quarter to rise by 24%, with a rating of "Outperform." Citi published a research report, expecting NetEase-S (09999.HK) to have stable performance in the third quarter of this year, with total revenue and adjusted EBITDA expected to increase by 12% and 24% year-on-year, reaching RMB 29.4 billion and RMB 10 billion, respectively. It is anticipated that online game revenue will grow by 16.6% year-on-year, driven by the recovery in mobile game growth and strong performance in PC games, particularly in titles such as "Fantasy Westward Journey," "Party Animals," and newly launched games like "Hearthstone," "Yanyun Sixteen Sounds," "Marvel's Midnight Suns," and "Destiny: Rise." Citi stated that NetEase currently has 17 approved game reserves, including the highly anticipated "Diablo IV" and "Infinity." It is expected that NetEase's gaming segment will achieve double-digit growth in the fourth quarter of 2025 due to a lower comparative base; the target price for NetEase (NTES.US) ADR is set at $140, with a rating of "Outperform." The firm predicts that NetEase's gaming and value-added services revenue in the third quarter of 2025 will increase by 16.2% year-on-year to RMB 24.2 billion, with gaming revenue growing by 16.6% to RMB 23.5 billion, and mobile game revenue expected to grow by about 9%, while PC game revenue will maintain a strong 35% year-on-year growth. Citi estimates that NetEase's subsidiary Youdao (DAO.US) will see total revenue increase by 4% year-on-year to RMB 1.6 billion in the third quarter of 2025, but learning service revenue and smart device revenue are expected to decrease by 3% and 18% year-on-year, respectively. Online marketing revenue is expected to grow by 29%, maintaining profitability. The firm anticipates that NetEase's subsidiary NetEase Cloud Music (09899.HK) will see revenue increase by 4% year-on-year to RMB 2.1 billion in the third quarter of 2025. The report expects NetEase's adjusted EBITDA in the third quarter of 2025 to increase by 24% year-on-year to RMB 10 billion, with a profit margin expected to reach 34.2%, driven by gross margin expansion and strict cost control. Overall, considering the accelerated growth in gaming revenue, Citi estimates that NetEase's gross margin will increase by 0.7 percentage points year-on-year to 63.5%; the operating expense ratio may decrease by 3 percentage points year-on-year, particularly in sales and marketing expenses and R&D expenses ### 相關股票 - [NetEase (NTES.US)](https://longbridge.com/zh-HK/quote/NTES.US.md) - [NTES-S (09999.HK)](https://longbridge.com/zh-HK/quote/09999.HK.md) ## 相關資訊與研究 - [NetEase has a Winning Game Plan in Hand](https://longbridge.com/zh-HK/news/280751982.md) - [China's gaming regulator: approved games include one title from NetEase](https://longbridge.com/zh-HK/news/273691663.md) - [East Side Games Group Shifts From Aggressive Growth to Profitability After Challenging 2025](https://longbridge.com/zh-HK/news/281274674.md) - [Scotiabank Says Markets Play The "Waiting Game"](https://longbridge.com/zh-HK/news/280471750.md) - [Rule Breaker Investing: 2026 March Market Cap Game Semifinals](https://longbridge.com/zh-HK/news/281194661.md)