NetEase-S: AI Empowers Education and Music, Q4 Revenue Forecast at RMB 26.9–30.3 Billion, Up 0.6%–13.5% YoY

Deep News12-10

1. What are NetEase-S's Q4 performance expectations? As of December 10, 2025, according to quarterly performance forecasts, the company's Q4 consensus revenue is projected at RMB 26.9–30.3 billion, representing year-over-year growth of 0.6%–13.5%. Net profit is expected to range between RMB 7.6–11.6 billion, with a YoY change of -13.5% to +32.2%. Adjusted net profit is forecasted at RMB 8.5–10.0 billion, reflecting a YoY change of -12.7% to +3.1%. Investors should monitor whether actual results exceed expectations upon the earnings release.

2. Latest Analyst Views on NetEase-S Hua'an Securities noted that NetEase-S reported Q3 2025 revenue of RMB 28.4 billion, up 8.2% YoY, with gross margin improving by 1.2 percentage points to 64.1%. Adjusted net profit rose 26.7% YoY to RMB 9.5 billion, with net margin increasing by 4.9 percentage points to 33.5%.

- **Gaming**: Revenue grew 11.8% YoY to RMB 23.3 billion, driven by strong performance from *Fantasy Westward Journey* (PC) and *Justice Online*. *Fantasy Westward Journey* (PC) set a new peak concurrent user record of 3.58 million. Overseas, *Destiny: Stellar* topped download charts in multiple regions, with *Diablo IV* and other titles set for release. - **Youdao (Education)**: Revenue rose 3.6% YoY to RMB 1.63 billion, supported by AI integration, including the launch of the new AI-powered Youdao Q&A Pen SpaceX. - **Cloud Music**: Revenue declined 1.8% YoY to RMB 1.96 billion, though the introduction of AI-powered sound-master features enhanced user experience.

Kaiyuan Securities highlighted that NetEase-S's Q3 2025 revenue reached RMB 28.4 billion (+8.2% YoY), with net profit attributable to shareholders up 31.8% YoY to RMB 8.6 billion. Gross and net margins improved by 1.2 and 5.4 percentage points, respectively, to 64.1% and 31.0%. Contract liabilities grew 25% YoY to RMB 19.5 billion, indicating potential for sustained earnings growth. The company forecasts 2025–2027 net profits of RMB 35.7/38.3/42.9 billion, with current P/E ratios of 16.6x/15.5x/13.8x.

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