[ET Net News Agency, 28 January 2021] Daiwa Research lifted its target price for
NetEase (09999) to HK$235 from HK$187 and reaffirmed its "buy" rating.
The research house forecast NetEase to deliver revenue growth of 26% in 4Q 2020, but
forex losses and investment losses will likely weigh on its net income. Daiwa estimated
27% growth in mobile game revenue and gross profit margin (GPM) improvement on the back of
more app store commission rate negotiations.
It believes the push to lower app store commissions will pave the way for more profit
for NetEase. If NetEase manages to negotiate a lower app store commission for more of its
mobile games, Daiwa estimated this will bring 2-3pp GPM expansion to its online games
segment in 2021-22. (KL)
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09999 NTES-S
Nominal 
146.600 0.000 (0.000%) Research Report
28/01/2021 15:46
{I-bank focus}Daiwa lifts NetEase (09999) to HK$235; "buy"
| Remark: | Real time quote last updated: 26/04/2024 07:54 |
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