Movement Alert｜NTES Falls 3.73% in Regular Trading, Broker Cuts Third-Quarter Game Revenue Growth Forecast

Market Focus10:53

On October 27, NTES recorded an Intraday Decline of 3.73% in Regular Trading, trading at HK$177.8, with turnover of HK$392 million.

The clearest catalyst was a recent broker forecast cut for the company’s third-quarter game and value-added services revenue growth, which highlighted pressure from weaker-than-expected performance of new title Sea of Remnants and a high year-ago base.

According to the updated estimates, third-quarter game and value-added services revenue growth was lowered to 7% from 9%, total revenue was trimmed to RMB30.2 billion, and adjusted operating profit was reduced to RMB12.3 billion. While the broker maintained an outperform rating and said investment income could provide support to adjusted net profit, the weaker revenue outlook appears to have weighed on sentiment toward NTES.

(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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