Netease Inc (9999) AI Stock Analysis

• Market Cap: HK$665.64B
• Dividend Yield: 2.18%
• Average Volume (3M): 6.01M
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.93
• Revenue Growth: 5.45%
• EPS Growth: 32.55%
• Country: HK
• Employees: 26,028
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 3.22
• Shares Outstanding: 3,167,959,000
• 10 Day Avg. Volume: 5,642,123
• 30 Day Avg. Volume: 6,010,111
• PEG Ratio: 9.86
• Price to Book (P/B): 3.00
• Price to Sales (P/S): 3.95
• P/FCF Ratio: 10.83
• 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$258.02
• Price Target Upside: 19.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: HK$247.00 ▲(13.93% Upside)

Netease Inc's strong financial performance and positive earnings call sentiment are the primary drivers of its high stock score. The company's robust profitability, efficient operations, and successful game launches contribute significantly to its attractiveness. While technical indicators suggest some short-term bearish momentum, the overall outlook remains positive due to solid fundamentals and strategic growth in international markets.

Positive Factors

Revenue Growth

Consistent revenue growth, driven by strong performance in gaming and related services, indicates robust market demand and effective strategy execution.

International Expansion

Expanding internationally diversifies revenue streams and reduces dependency on domestic markets, enhancing long-term growth potential.

Cash Flow Generation

Strong cash flow generation supports liquidity, enables reinvestment, and provides flexibility for strategic initiatives or shareholder returns.

Negative Factors

Innovative Business Revenue Decline

Declining revenues in innovative segments may indicate challenges in diversification efforts, impacting long-term growth and innovation capacity.

NetEase Cloud Music Revenue Decline

Stagnant or declining revenues in music services suggest competitive pressures or market saturation, potentially limiting future growth.

Organizational Changes

Unclear long-term impact of organizational changes may introduce uncertainty in operational efficiency and strategic direction.

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, advertising services, and educational technology. Founded in 1997, the company is best known for its innovative online gaming offerings, which include popular titles such as 'Fantasy Westward Journey' and 'Knives Out.' Additionally, Netease has a significant presence in the e-commerce market through its platforms that connect buyers and sellers, as well as in the educational sector with its online learning services.

How the Company Makes Money

Netease generates revenue primarily through its online gaming segment, which constitutes a substantial portion of its income, driven by both in-game purchases and subscription fees. The company also profits from its e-commerce operations, which include sales of products across various categories and commissions from third-party merchants. Advertising services contribute to revenue as well, as businesses pay to promote their products on Netease's platforms. Furthermore, Netease's partnerships with international gaming companies to distribute and operate games in China enhance its earnings potential. The diversification across these sectors allows Netease to maintain stable revenue streams and adapt to market trends.

Netease Inc Financial Statement Overview

Summary

Netease Inc demonstrates strong financial performance with consistent revenue growth and robust profit margins. The company has a low debt-to-equity ratio, high return on equity, and strong cash flow generation, indicating financial stability and efficient capital management.

Income Statement

Netease Inc demonstrates strong financial performance with consistent revenue growth and robust profit margins. The TTM data shows a gross profit margin of 62.71% and a net profit margin of 30.17%, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also impressive at 30.21% and 32.38%, respectively. The company has maintained a positive revenue growth trajectory, with a 2.24% increase in the TTM period, reflecting steady expansion in its operations.

Balance Sheet

The balance sheet of Netease Inc is solid, characterized by a low debt-to-equity ratio of 0.068, indicating conservative leverage and financial stability. The return on equity (ROE) is strong at 24.25%, showcasing effective utilization of shareholder funds to generate profits. The equity ratio stands at 71.75%, reflecting a healthy capital structure with a substantial portion of assets financed by equity.

Cash Flow

Netease Inc's cash flow position is robust, with a significant free cash flow growth rate of 10.99% in the TTM period. The operating cash flow to net income ratio is 0.86, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.95, demonstrating efficient conversion of earnings into cash, which supports the company's liquidity and potential for reinvestment or shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	111.83B	105.30B	103.47B	96.50B	87.61B	73.67B
Gross Profit	70.98B	65.81B	63.06B	52.77B	46.97B	38.98B
EBITDA	37.56B	32.00B	30.76B	22.49B	19.69B	18.00B
Net Income	36.28B	29.70B	29.42B	20.34B	16.86B	12.06B
Balance Sheet
Total Assets	214.49B	195.99B	185.92B	172.76B	153.64B	141.87B
Cash, Cash Equivalents and Short-Term Investments	149.09B	137.58B	126.72B	117.46B	97.53B	93.47B
Total Debt	7.35B	12.82B	20.48B	28.46B	21.69B	20.31B
Total Liabilities	53.56B	53.50B	57.84B	63.89B	54.37B	48.08B
Stockholders Equity	156.26B	138.69B	124.29B	104.73B	95.33B	82.13B
Cash Flow
Free Cash Flow	46.89B	38.40B	31.06B	25.07B	21.82B	21.60B
Operating Cash Flow	48.93B	39.68B	35.33B	27.71B	24.93B	24.89B
Investing Cash Flow	-12.94B	17.92B	-17.04B	-7.37B	-7.08B	-29.19B
Financing Cash Flow	-19.09B	-27.34B	-21.47B	-10.24B	-12.59B	9.91B

Netease Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 216.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Negative. The current price of 216.8 is above the 20-day moving average (MA) of 216.53, below the 50-day MA of 223.66, and above the 200-day MA of 197.14, indicating a neutral trend. The MACD of -1.17 indicates Negative momentum. The RSI at 47.94 is Neutral, neither overbought nor oversold. The STOCH value of 35.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9999.

Netease Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9999	80 Outperform	HK$665.64B	18.88	24.72%	2.18%	5.45%	32.55%
0799	70 Outperform	$4.26B	7.43	17.91%	3.88%	4.02%	-23.98%
9626	65 Neutral	HK$93.72B	405.65	5.32%	―	16.59%	―
3888	62 Neutral	$46.63B	24.51	6.19%	0.47%	-0.11%	12.80%
2400	61 Neutral	HK$34.02B	22.49	57.06%	1.18%	51.87%	4031.49%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6633	56 Neutral	HK$2.24B	25.27	4.10%	―	-41.86%	―

Netease Inc Corporate Events

NetEase Announces Third Quarter Cash Dividend

NetEase, Inc. has announced a cash dividend of USD 0.114 per share for the third quarter ending on September 30, 2025. This dividend reflects the company’s ongoing commitment to providing shareholder value and indicates a stable financial performance. The ex-dividend date is set for December 4, 2025, with the payment date scheduled for December 16, 2025. This announcement may positively influence investor confidence and reinforce NetEase’s position in the market.

The most recent analyst rating on (HK:9999) stock is a Buy with a HK$249.00 price target. To see the full list of analyst forecasts on Netease Inc stock, see the HK:9999 Stock Forecast page.

NetEase Reports Strong Q3 2025 Financial Performance Amid Mixed Segment Results

NetEase, Inc. reported its unaudited financial results for the third quarter of 2025, showing a revenue increase of 8.2% year-over-year to RMB28.4 billion. The company’s gaming segment saw an 11.8% rise in revenues, while Youdao experienced a modest growth of 3.6%. However, NetEase Cloud Music and other innovative businesses faced declines in revenue. Despite these mixed results, the company achieved a gross profit increase of 10.3% and reported a net income of RMB8.6 billion, indicating strong financial performance and operational efficiency.

The most recent analyst rating on (HK:9999) stock is a Buy with a HK$249.00 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 with SEC, Revealing Investment Holdings

NetEase, Inc. has filed Form 13F with the U.S. Securities and Exchange Commission, detailing its holdings in publicly traded companies for the quarter ending September 30, 2025. This filing, required for companies managing over $100 million in equity securities, highlights NetEase’s role as an institutional investment manager and provides insights into its investment strategies and market positioning.

The most recent analyst rating on (HK:9999) stock is a Buy with a HK$249.00 price target. To see the full list of analyst forecasts on Netease Inc stock, see the HK:9999 Stock Forecast page.

NetEase, Inc. Schedules Q3 2025 Earnings Release and Conference Call

NetEase, Inc. has announced that its board of directors will hold a meeting on November 19, 2025, to approve the company’s unaudited financial results for the third quarter of 2025 and discuss the quarterly dividend. The results will be publicly released on November 20, 2025, followed by an earnings teleconference call where the company’s management will discuss the results and address questions from stakeholders. This announcement is significant as it provides insights into the company’s financial health and strategic direction, potentially impacting investor confidence and market positioning.

The most recent analyst rating on (HK:9999) stock is a Buy with a HK$249.00 price target. To see the full list of analyst forecasts on Netease Inc stock, see the HK:9999 Stock Forecast page.

NetEase Files Proxy Voting Record with SEC

NetEase, Inc. has filed Form N-PX with the U.S. Securities and Exchange Commission, disclosing its proxy voting record on executive compensation matters for the year ending June 30, 2025. Despite being an institutional investment manager with discretion over significant U.S. securities, NetEase did not exercise voting power on proxies during the reporting period, indicating a passive stance in its investment management activities.

The most recent analyst rating on (HK:9999) stock is a Buy with a HK$233.00 price target. To see the full list of analyst forecasts on Netease Inc stock, see the HK:9999 Stock Forecast page.