- NetEase reported an adjusted net income from continuing operations per ADS of 15.09 yuan, beating the estimate of 12.56 yuan.
- Total revenue reached 26.75 billion yuan, slightly below the estimated 27.25 billion yuan.
- Revenue from Games and Related Value-Added Services was 21.24 billion yuan, surpassing the estimate of 20.9 billion yuan.
- Innovative Businesses and Others generated net revenue of 2.29 billion yuan, missing the estimate of 2.61 billion yuan.
- Youdao’s net revenue amounted to 1.34 billion yuan, falling short of the anticipated 1.57 billion yuan.
- NetEase Cloud Music reported a net revenue of 1.88 billion yuan, below the estimate of 2.06 billion yuan.
- The company achieved a gross profit of 16.27 billion yuan, which did not meet the estimate of 16.69 billion yuan.
- Games and Related Value-Added Services recorded a gross profit of 14.17 billion yuan, slightly below the estimated 14.39 billion yuan.
- Youdao’s gross profit was 640.8 million yuan, missing the forecast of 797.9 million yuan.
- Cloud Music achieved a gross profit of 600.5 million yuan, which fell short of the predicted 682.6 million yuan.
- Innovative Businesses and Others reported a gross profit of 864.2 million yuan, under the estimate of 924.9 million yuan.
- Games and Related Value-Added Services had a gross profit margin of 66.7%, slightly below the estimate of 68.6%.
- Youdao’s gross profit margin was 47.8%, not reaching the anticipated 50.6%.
- Innovative Businesses and Others achieved a gross profit margin of 37.8%, which exceeded the estimate of 36.2%.
- Cloud Music’s gross profit margin was 31.9%, just missing the estimation of 32.7%.
- Company comments highlighted the healthy development of Youdao and NetEase Cloud Music in 2024, driven by quality content and user experiences.
- Analyst ratings include 35 buys, 4 holds, and 0 sells for NetEase.
NetEase Inc on Smartkarma
Independent investment analyst Ying Pan on Smartkarma has provided insightful coverage on NetEase Inc. In the report titled “NetEase, Inc. (NTES US, BUY, TP US$118) TP Change,” it was highlighted that NetEase displayed strong performance in C3Q24, with robust PC game revenue offsetting the decline in mobile game revenue. This led to a raised price target of US$118. The analyst raised the target price due to the positive outlook of new game launches, despite some revenue components falling slightly below estimates.
In another report titled “NetEase (NTES US, BUY, TP US$122) Review,” Ying Pan projected a significant acceleration in game growth for NetEase in the second half of 2024 and 2025. The analyst maintained a BUY rating with a target price of US$122, citing promising future prospects driven by expected releases such as Naraka Mobile and Marvel games. The report emphasized NetEase’s Q2 results meeting expectations and highlighted the anticipated growth trajectory for the company.
A look at NetEase Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
NetEase Inc, an Internet technology company focusing on developing applications and services in China, appears to have a promising long-term outlook based on the recently assessed Smartkarma Smart Scores. With a remarkable Growth score of 5, the company seems well-positioned for future expansion and development. Its Resilience score of 5 also indicates a strong ability to weather economic challenges, further boosting its appeal for long-term investors.
Additionally, NetEase Inc‘s above-average scores in Dividend (4) and Momentum (4) suggest stability in returns and a positive trajectory for stock performance. Although its Value score sits at 3, indicating moderate value compared to other factors, the overall high scores in Growth and Resilience paint a favorable picture for the company’s future prospects in the ever-evolving tech industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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