NetEase (09999.HK) will report Q2 results Thursday. A FactSet survey of nine
analysts forecasts reported net profit up 13% YoY to RMB 9.72 bln and adjusted
net profit up 7.3% YoY to RMB 10.23 bln; revenue is seen +4.3% YoY to RMB 29.1
bln, supported by evergreen titles including Fantasy Westward Journey and Eggy
Party. Nomura warns NetEase’s holdings in Alibaba and Pinduoduo could widen
investment losses and weigh on reported net profit. Nomura expects July release
The Forgotten Sea could generate RMB 200–300 mln monthly gross revenue,
potentially accelerating game revenue growth in H2. CITIGROUP tracking shows 57
games in the pipeline, 23 approved for domestic launch; any management update to
the release schedule could be an additional stock catalyst.
