NTES: Regular Game Approvals and Overseas Expansions Drive Growth; Positive On 2Q23 Performance With Better Margins
We are positive on NTES’s 2Q23 performance mainly on better margin due to the downsizing of Cloud Music and upside in in-house games. With the downsizing of Cloud Music, we expect the company’s 2Q23 revenue to be in line with consensus at RMB 24,972M. However, we expect NTES’s margin to be better than expectations without the lower margin licensed game WoW and less loss from Cloud Music. NTES released several new games in June, which we believe will make contributions to its revenues in 3Q23. As China has resumed its normal game approval process, we expect NTES can continue to maintain its stable growth in China, while its overseas game studios can eventually make more contributions to topline growth.
T.H. Capital is an independent research and investment advisory firm specializing in China. We offers real-time, on-the-ground, bottom-up research across a wide spectrum from macro and industry analysis to company specific projects; from China ADRs to international names that have meaningful exposure to China market. We deliver relevant, comprehensive and data driven research adding immense value to clients.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.