CICC: Netease-S maintains an outperform industry rating with a target price of HK $265.

CICC released a research report stating that, considering the improvement in operating profit margin, it raised Net Non-GAAP Net Profit for Netease in 2026-2027 by 3% to 42-467 billion yuan. The current price corresponds to a Hong Kong stock trading at 11/10x and a US stock trading at 12/11x 26/27 Non-GAAP P/E. It maintains an outperform industry rating and a target price of 265 HKD/171 USD, with potential upside of 54%/46% for HK and US markets.