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| HSI1 | 26,009.46 | +310.97 | 257.28B |
| HSCEI1 | 8,634.34 | +86.50 | 89.85B |
| Back Zoom + Zoom - Block Traded | |
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2026-08-21 14:36:10 NTES (09999.HK) is a high-quality "non-AI" conglomerate, Goldman Sachs opined in its research report. Amid elevated AI spending in the industry and pressure on the gross margins of some peers, the company's gross margin and FCF flow both notched all-time highs. 2Q game revenue grew 10% YoY, while operating profit mounted 29% YoY, once again demonstrating the resilience and earnings growth capability of its gaming business. On the back of a favorable mix of PC and mobile games, lower iOS/Android channel fees and a shift toward proprietary channels, 2Q game gross margin reached a record high. Goldman Sachs viewed the margin expansion is structural in nature and expected operating profit to maintain high-teens YoY growth in 2H, backed by improved operating efficiency. The broker trimmed its 2026-28 revenue forecasts by up to 2% to reflect weaker-than-expected performance of "Sea of Remnants" and lower visibility for new games, partly offset by strong performance from evergreen games. The 2026 net profit forecast was axed by 4% to reflect investment losses, while the 2027-28 net profit forecasts were largely unchanged. The Buy rating was maintained, with the TP raised from HKD262 to HKD263. ~ AASTOCKS Financial News Website: www.aastocks.com | |