Netease Inc (9999) AI Stock Analysis

• Market Cap: HK$653.09B
• Dividend Yield: 1.55%
• Average Volume (3M): 5.00M
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.92
• Revenue Growth: 0.85%
• EPS Growth: 6.37%
• Country: HK
• Employees: 26,028
• Sector: Communication Services
• Sector Strength: 79
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 3.79
• Shares Outstanding: 3,222,469,000
• 10 Day Avg. Volume: 5,617,415
• 30 Day Avg. Volume: 5,000,626
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$228.60
• Price Target Upside: 9.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 84 Outperform
• Price Target: HK$246.00 ▲(17.70% Upside)

Netease Inc. is well-positioned with excellent financial health, strong profitability, and robust technical indicators. The valuation is reasonable, and recent earnings call insights show growth in core gaming segments, despite some challenges in non-core areas. These factors contribute to a strong overall stock rating.

Netease Inc Business Overview & Revenue Model

Company Description

NetEase Inc. (9999) is a leading Chinese technology company that operates in various sectors including online gaming, e-commerce, education, and music streaming. Founded in 1997 and headquartered in Hangzhou, China, the company is best known for its robust portfolio of online games, which includes both self-developed titles and licensed games. NetEase also provides a range of Internet services, including email and advertising services, and has expanded into other digital content areas such as online education and music streaming through its various subsidiaries.

How the Company Makes Money

NetEase makes money primarily through its online gaming segment, which includes both mobile and PC games. The company generates revenue from game sales, in-game purchases, and subscriptions. Key to its success are popular titles such as 'Fantasy Westward Journey' and 'Knives Out'. Additionally, NetEase earns money from its music streaming service, NetEase Cloud Music, which operates on a freemium model that combines free access with advertising revenue and subscription fees for premium features. The company's e-commerce platform, Yanxuan, also contributes to its revenue, selling a variety of products directly to consumers. Strategic partnerships with foreign game developers and technology companies, alongside a strong focus on innovation and user engagement, further bolster NetEase's earnings.

Netease Inc Financial Statement Overview

Summary

Netease Inc. exhibits excellent financial health with strong profitability metrics, including a gross profit margin of 62.7% and a net profit margin of 30.2%. The company maintains a solid balance sheet with low leverage, evidenced by a debt-to-equity ratio of 0.07, and strong cash flow generation with a free cash flow growth rate of 4.1% TTM.

Income Statement

Netease Inc. demonstrates strong profitability with a gross profit margin of 62.7% and a net profit margin of 30.2% in TTM (Trailing-Twelve-Months). The company has shown consistent revenue growth with a 3.4% growth rate from the previous year. The EBIT and EBITDA margins are robust at 30.2% and 32.4%, respectively, indicating efficient operations and healthy earnings before interest and taxes.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.07, indicating minimal leverage and financial risk. The return on equity is strong at 22.5%, reflecting efficient use of shareholder equity to generate profits. The equity ratio stands at 71.6%, showcasing a significant proportion of the company's assets financed by equity.

Cash Flow

Netease Inc. has a strong cash flow position with a free cash flow growth rate of 4.1% TTM. The operating cash flow to net income ratio is 1.31, showing that operating cash flows comfortably cover net income. The free cash flow to net income ratio of 1.24 further underscores the company's strong cash generation capabilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	105.30B	103.47B	96.50B	87.61B	73.67B
Gross Profit	65.81B	63.06B	52.77B	46.97B	38.98B
EBITDA	32.00B	30.76B	22.49B	19.69B	18.00B
Net Income	29.70B	29.42B	20.34B	16.86B	12.06B
Balance Sheet
Total Assets	195.99B	185.92B	172.76B	153.64B	141.87B
Cash, Cash Equivalents and Short-Term Investments	137.58B	126.72B	117.46B	97.53B	93.47B
Total Debt	12.82B	20.48B	28.46B	21.69B	20.31B
Total Liabilities	53.50B	57.84B	63.89B	54.37B	48.08B
Stockholders Equity	138.69B	124.29B	104.73B	95.33B	82.13B
Cash Flow
Free Cash Flow	38.40B	31.06B	25.07B	21.82B	21.60B
Operating Cash Flow	39.68B	35.33B	27.71B	24.93B	24.89B
Investing Cash Flow	17.92B	-17.04B	-7.37B	-7.08B	-29.19B
Financing Cash Flow	-27.34B	-21.47B	-10.24B	-12.59B	9.91B

Netease Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 209.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9999, the sentiment is Positive. The current price of 209 is above the 20-day moving average (MA) of 208.64, above the 50-day MA of 205.94, and above the 200-day MA of 162.67, indicating a bullish trend. The MACD of 0.47 indicates Positive momentum. The RSI at 52.26 is Neutral, neither overbought nor oversold. The STOCH value of 22.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9999.

Netease Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9999	84 Outperform	HK$653.09B	19.27	23.90%	1.55%	0.85%	6.37%
0799	78 Outperform	HK$5.27B	8.28	19.85%	3.67%	8.95%	712.96%
9626	70 Outperform	HK$74.49B	―	-4.30%	―	20.62%	87.94%
3888	69 Neutral	HK$48.09B	27.28	7.07%	0.41%	19.66%	169.54%
2400	67 Neutral	HK$34.33B	30.59	38.63%	0.76%	44.92%	―
6633	60 Neutral	HK$2.42B	43.70	2.87%	―	-31.60%	―
Sector *	55 Neutral	HK$63.39B	-0.67	-4.21%	5.33%	-2.16%	-18.87%

Netease Inc Corporate Events

NetEase to Announce Q2 2025 Financial Results and Dividend

NetEase, Inc. announced that its board of directors will meet on August 13, 2025, to approve the company’s unaudited financial results for the second quarter and first half of 2025, along with the quarterly dividend. The results will be published on August 14, 2025, on the Hong Kong Stock Exchange’s website. An earnings teleconference call will follow the announcement, providing stakeholders an opportunity to discuss the results with the company’s management.

The most recent analyst rating on (HK:9999) stock is a Buy with a HK$182.00 price target. To see the full list of analyst forecasts on Netease Inc stock, see the HK:9999 Stock Forecast page.

NetEase Reports Strong Q1 2025 Financial Results with Revenue Growth

NetEase, Inc. announced its unaudited financial results for the first quarter of 2025, reporting a net revenue increase of 7.4% year-over-year to RMB28.8 billion. The company’s games and related services saw a significant revenue boost of 12.1%, while other segments like Youdao and NetEase Cloud Music experienced declines. Despite these mixed results, NetEase achieved a gross profit increase of 8.6% and a reduction in operating expenses by 14.4%, leading to a net income of RMB10.3 billion.

The most recent analyst rating on (HK:9999) stock is a Buy with a HK$210.00 price target. To see the full list of analyst forecasts on Netease Inc stock, see the HK:9999 Stock Forecast page.

NetEase Announces First Quarter Dividend for 2025

NetEase, Inc. has announced a cash dividend of USD 0.135 per share for the first quarter ending March 31, 2025, with the payment date set for June 10, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact investor sentiment and the company’s market positioning.

The most recent analyst rating on (HK:9999) stock is a Buy with a HK$191.00 price target. To see the full list of analyst forecasts on Netease Inc stock, see the HK:9999 Stock Forecast page.

NetEase Files Form 13F, Revealing U.S. Equity Holdings

NetEase, Inc. announced the filing of Form 13F with the U.S. Securities and Exchange Commission, detailing its holdings in publicly traded companies as of March 31, 2025. This filing, required for companies managing over $100 million in equity securities, highlights NetEase’s role as an institutional investment manager and underscores its involvement in the U.S. financial markets, potentially impacting its strategic positioning and stakeholder interests.