UBS: Maintains "Buy" rating on NTES-S (09999) with target price raised to 198 Hong Kong dollars.

UBS released a research report stating that the earnings per share forecast for NTES-S (09999) from 2024 to 2026 has been raised by 0% to 7%, maintaining a "buy" rating and raising the H-share target price to 198 Hong Kong dollars. The report said that NetEase's third-quarter earnings exceeded expectations, with core gaming business revenue surpassing expectations, reassuring investors. Before the performance announcement, the market's investment sentiment towards NetEase was weak, but the third-quarter performance relieved concerns about the company's gaming growth momentum and sales channels for next year. It is expected that NetEase's gaming growth next year will return to double-digit year-on-year growth. The bank pointed out that NetEase conducted a $500 million share buyback in the third quarter, marking significant quarterly growth for two consecutive quarters. If NetEase fully executes the remaining $3.4 billion buyback quota, after accounting for buybacks and dividends, it could bring investors an annualized shareholder return of approximately 9%.