[ET Net News Agency, 28 July 2020] Nomura initiated coverage of NetEase Inc (09999)
with a "buy" rating and a target price of HK$168.
In 2Q, the research house expects NetEase to register 17% growth in its top line. Its
non-GAAP operating margin likely remained stable at 30%. Nomura expects the company to
report non-GAAP EPS at CNY1.41, up 17%, largely owing to a higher margin estimate.
It said that 2Q witnessed a normalization in time spent for most online entertainment
apps including mobile games, which were boosted by the pandemic-triggered lockdown in 1Q.
The outlook for 2H remains solid, buoyed by the upcoming launch of two promising new
titles as well as a more favorable base in 2H 2019. (KL)