NTES(09999) 华安证券·2024-05-25 07:01Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company's revenue for Q1 2024 was 26,852 million yuan, representing a year-on-year growth of 7.2%, which is in line with market expectations [4][7] - Non-GAAP net profit reached 8,511 million yuan, up 12.5% year-on-year, exceeding market expectations [4][7] - The gaming and related value-added services revenue was 21,460 million yuan, growing 7.0% year-on-year [4] - The company has a strong pipeline of products expected to drive future growth, including new game releases and updates to existing titles [4] Financial Performance Summary - Revenue for 2024E is projected at 103,468 million yuan, with a year-on-year growth of 12.9% [5] - Non-GAAP net profit for 2024E is estimated at 32,608 million yuan, reflecting a 16.6% increase year-on-year [5] - The company maintains a healthy ROE of 24% for 2024E [5] - The P/E ratio is projected to decrease from 16.1 in 2023 to 10.9 in 2024E, indicating potential undervaluation [5] Game and Service Performance - The company continues to see strong performance from existing games such as "Identity V" and "Onmyoji," which have maintained popularity among players [4] - New game releases, including "World Beyond," have quickly gained traction, reaching the top of the iOS download charts in China [4] - The company is expanding its gaming portfolio with anticipated releases like "Yanyun Sixteen Sounds" and updates to "Nirvana in Fire" mobile game [4] Future Outlook - The company expects to achieve Non-GAAP net profits of 38,032 million yuan in 2025E and 44,192 million yuan in 2026E, indicating a positive growth trajectory [4][5] - The gaming sector remains a key growth driver, supported by a loyal user base and continuous content updates [4]