NTES(NTES) 招银国际·2024-11-15 02:28Investment Rating - The report maintains a "Buy" rating for the company [1][3]. Core Insights - The company reported a 4% year-over-year decline in total revenue for Q3 2024, amounting to RMB 26.2 billion, which aligns with Bloomberg consensus expectations [1]. - Operating profit decreased by 5% year-over-year to RMB 7.15 billion, also in line with expectations [1]. - The decline in revenue is attributed to a high base effect and underperformance of certain new games [1]. - Future growth is anticipated from the launch of new game products in December 2024, which are expected to drive revenue growth in FY2025 [1]. - Revenue forecasts for FY2024 to FY2026 have been revised downwards by 5-6% due to the underperformance of new games [1]. - The target price has been adjusted to 130.00, reflecting a 64.5% upside from the current price of 543 million, representing about 1% of the market capitalization as of November 14 [3]. Earnings Summary - Revenue projections for FY2024 to FY2026 are as follows: - FY2024: RMB 106.0 billion - FY2025: RMB 113.2 billion - FY2026: RMB 119.6 billion - Adjusted net profit for FY2024 is projected at RMB 32.5 billion, with a slight decline expected in FY2025 [9][10].