HSI1 27,023.67 -242.71 127.26B
HSCEI1 9,178.84 -89.34 46.35B
Back    Zoom +    Zoom - Block Traded
M Stanley: NTES-S 4Q Rev. & Profit Miss Due to Delayed Rev. Recognition
2026-02-12 10:16:59
NTES-S (09999.HK)'s revenue grew by only 3% YoY to RMB27.5 billion in 4Q25, according to Morgan Stanley's research report. Specifically, the company's online game revenue, due to slower revenue recognition, increased by 4% YoY to RMB21.3 billion, 6% below the broker's expectations.

Morgan Stanley estimated that NTES-S' total game revenue should have grown by 10% YoY, a very healthy growth level. Meanwhile, the deferred revenue of RMB20.5 billion with an increase of 34% YoY also marked another record high.

During the same period, NTES-S also saw a 27% YoY decline in non-GAAP net profit to RMB7.1 billion, 25% lower than Morgan Stanley's forecast. Half of the miss was attributable to delayed revenue recognition, and the other half was attributable to the mark-to-market loss on equity investments.

Morgan Stanley gave NetEase (NTES.US) a target price of USD168 and an Overweight rating.
~



AAStocks Financial News
Web Site: www.aastocks.com