NTES-S to Stop Financial Support for Nagoshi Studio Starting in May: Report

Written by Emily J. Thompson, Senior Investment Analyst

Source: aastocks

Updated: Mar 08 2026

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09999-1.1%

Should l Buy 09999?

Source: aastocks

Investment Withdrawal: NTES-S has decided to cease investment in Nagoshi Studio starting from May, as confirmed by a spokesperson, although details of the exit terms remain undisclosed.
Financial Implications: The decision to withdraw funding was influenced by the need for an additional investment of approximately JPY7 billion (around HKD347 million) to complete the studio's new project, "Gang of Dragon."

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Analyst Views on 09999

Wall Street analysts forecast 09999 stock price to rise

0 Analyst Rating

0 Buy

0 Hold

0 Sell

Current: 172.400

Low

Averages

High

Current: 172.400

Low

Averages

High

Daiwa

Buy

downgrade

$263 -> $257

2026-02-13

Reason

Daiwa

Price Target

$263 -> $257

AI Analysis

2026-02-13

downgrade

Buy

Reason

The analyst rating from Daiwa for NTES-S (09999.HK) is a Buy, despite lowering the target price from HKD263 to HKD257. The reasoning behind this rating is based on the company's 4Q25 online game revenue and adjusted EPS being lower than market consensus by 7.0% and 22.8%, respectively. Although the non-GAAP operating profit was only slightly below consensus by 6%, the larger net profit gap was attributed to a significant investment loss of RMB1.7 billion recorded during the quarter. Despite these challenges, the maintenance of a 40% dividend payout ratio for 2025 suggests a level of confidence in the company's ongoing financial commitments.

CLSA

Outperform

maintain

$150

2026-02-12

Reason

CLSA

Price Target

$150

2026-02-12

maintain

Outperform

Reason

The analyst rating from CLSA on NTES-S (09999.HK) is maintained as "Outperform" despite a slight reduction in the adjusted net profit forecast for 2026 by 2%. The reasoning behind this rating includes the following points: 1. 4Q25 Results Below Expectations: The company's total revenue and adjusted EBIT for the fourth quarter were below CLSA's forecasts, indicating some short-term challenges. 2. Online Game Revenue Missed Forecast: The revenue from online games grew only 3.5% YoY, which was attributed to a high base from the previous year and a shift in revenue recognition for new games. 3. Improved Deferred Revenue Growth: Despite the revenue miss, there was a notable acceleration in deferred revenue growth, which increased by 5% QoQ and 32% YoY, suggesting potential future revenue. 4. Stronger Game Pipeline for 2026: CLSA is optimistic about the game pipeline for 2026, highlighting upcoming titles like the Diablo IV expansion pack, Sea of Remnants, and Ananta, which could drive future growth. Overall, while there are short-term concerns reflected in the recent results, the long-term outlook remains positive due to a stronger game pipeline, justifying the "Outperform" rating.

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About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

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CICC Suggests NTES-S and XD INC; Emphasizes Gaming Industry Content Following Google Play's Commission Rate Reduction

Mar 09 2026aastocks

Google Play Commission Changes: Google is adjusting its commission rules for Google Play services, allowing third-party payment channels with a reduced commission rate, effective from June 30 in the US and other regions.
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