Top ratingMaintain a "Buy" rating

Dahua Jixian released a research report stating that Netease's fourth quarter performance in 2025 fell short of expectations, with revenue increasing by 3% year-on-year to 27.5 billion RMB, and non-GAAP net profit plunging by 27%. Despite the disappointing performance, the firm maintains a "buy" rating, but has lowered the target price from 276 HKD to 250 HKD. The firm believes that the promising game reserves will drive global growth in the next phase. The highly anticipated game "Forgotten Sea" is scheduled to be officially released in the third quarter of 2026, and technical testing for the game began on February 5th, with encouraging player engagement. Shortly after the release of the second promotional trailer, it recorded over 10 million views, demonstrating strong market interest and attention. Meanwhile, the company's other large-budget urban open world project, "Infinite," is also steadily in development.