On August 25, NetEase rose 3.74% in regular trading, trading at $127.805/share, with turnover of $10.8628 million, extending its post-earnings recovery trend.

On the news front, Goldman Sachs, Bank of America Securities, Citi, and Daiwa collectively raised their target prices and maintained buy ratings following NetEase's Q2 earnings release. Goldman Sachs highlighted that the game gross margin expansion is structural in nature, while Bank of America raised its adjusted operating profit forecast by 7% to 9%. Additionally, the Hang Seng Index Company announced that NetEase will be included in the Hang Seng Stock Connect China Enterprises Index, effective September 14.

Although Q2 net profit declined 18.6% year-over-year to RMB 7 billion, primarily dragged by approximately RMB 2.95 billion in investment losses and an effective tax rate surge to 25.5%, core operating metrics remained strong. Revenue of RMB 30.1 billion exceeded market expectations, gaming revenue grew 10% to RMB 25 billion, operating profit surged 33% year-over-year, and gaming gross margin reached a record high of 76.1%. Guohai Securities also upgraded its rating to buy, citing continued improvement in operating profitability.

(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.)