CLSA: Maintain NTES-S (09999) "outperform" rating, game revenue to rebound in the fourth quarter of 2024.

CICC Lyra released a research report stating that it is expected that in the fourth quarter of 2024, the total revenue of NTES-S (09999) will increase by 4% year-on-year, and the adjusted profit before tax and interest will also increase by 4% year-on-year. In 2025, the revenue may accelerate again to a year-on-year increase of 9%. The bank maintains a "outperform" rating on the stock. The report mentioned that due to the return of Blizzard games, as well as strong growth in new games such as "Marvel Rival", "Where Winds Meet" and "Once Human", NetEase's game revenue will rebound in the fourth quarter of 2024. In 2025, the product line will be strengthened, especially in game genres such as open-world RPG, shooting games, and ACG (anime games) that have not been developed yet.