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<Research>Daiwa Slashes NTES-S TP to HKD257
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NTES-S (09999.HK)'s 4Q25 online game revenue and adjusted EPS were 7.0% and 22.8% lower than market consensus respectively, according to a report from Daiwa.

The non-GAAP operating profit was only 6% below consensus, but the net profit gap was larger, primarily due to an investment loss of RMB1.7 billion recorded this quarter. A 40% dividend payout ratio was maintained for 2025.

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Daiwa reiterated a Buy rating on NTES-S but lowered the target price from HKD263 to HKD257.

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