Movement Alert|NetEase Rises 4.1% in Pre-Market Trading, Q1 Earnings Beat Expectations Across All Key Metrics

Market Focus
May 22

On May 22, NetEase rose 4.1% in pre-market trading, trading at $115.21/share, with trading volume of approximately $275,600. The rebound was driven by the company's Q1 earnings release on the prior evening, which delivered results that comprehensively exceeded market expectations.

NetEase reported Q1 net revenue of RMB 30.6 billion, up 6.1% year-over-year, surpassing the consensus estimate of RMB 29.51 billion. Game and related value-added services revenue reached RMB 25.7 billion, growing 6.9% YoY and beating expectations by approximately RMB 1 billion, powered by evergreen titles including theErta Fantasy series andErta Cloud Sixteen Voices. Gross profit surged 14.8% to RMB 21.2 billion, with gross margin climbing to 69%, a multi-year high. Non-GAAP net income attributable to shareholders came in at RMB 11.3 billion, with adjusted EPS per ADS of RMB 17.46 versus the consensus of RMB 15.47. Deferred revenue increased by nearly RMB 1.3 billion quarter-over-quarter, providing support for upcoming quarters. Multiple brokerages including CICC and CMB International maintained Buy ratings, with CICC setting a target price of HKD 265.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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