Jaffray, US investment bank, released a research report today

The following is a summary of the report:

As NetEase's second quarter's strong performance exceeded our revenue and net profit forecasts for Wall Street, we reiterated the "overweight" rating of NetEase shares and raised the earnings per share and target share price for fiscal year 2013. NetEase second quarter strong net game revenue originates from the stable performance of the core game, as well as "kingdoms Matchless War" and "Kungfu Master" (Kung Fu Master) two independent development game's benign growth. We are still optimistic about the strategy that NetEase management will expand the game portfolio to the new field. The company has a strong gaming pipeline in the second half of fiscal year 2013, including two new games and some data sheets. In addition, the company's focus on mobile gaming is another area of concern in the coming year. We have raised the target price of the unit from USD 74 to $80, equivalent to 10 times times earnings per share in fiscal 2014 + net cash per share. Our previous target share price is 10 times times earnings per share + net cash per share in fiscal 2013.

Second-quarter revenue and earnings per share outstanding performance. NetEase in the second quarter to achieve net revenue of 369 million U.S. dollars, higher than our 348 million U.S. dollar expectations, but also higher than the 363 million dollar Wall Street average expectations. The GAAP (US General accounting standard) yields 1.37 dollars per share, exceeding our 1.24 dollar forecast and exceeding Wall Street's average of 1.25 dollars. Online game revenue for 336 million U.S. dollars (the chain growth of 3.2%, year-on-year growth of 22.3%), higher than our 316 million U.S. dollar expectations, due to the recent release of the "Kingdoms" and "Kung Fu master" two independent development game performance, coupled with the current performance of NetEase game stability, including "Dream West Tour", " Dahua West Tour II, "Dahua West Tour III", "World III" and "Qian Female Ghosts II".

Strong game piping and mobile strategy. We expect the company's online gaming revenues to achieve 19% year-on-year growth in fiscal year 2013 (2012 in fiscal year 13%), due to the release of a variety of data and new games in fiscal year 2013. This July, the company launched the "Legend of Fairy" and "new flying" of the information, August launched the 3D MMORPG (large multiplayer online role-playing game), "Dragon Sword." The two new large multiplayer online games planned for the second half of 2013 include: 1 2.5D MMORPG "Tibet Town Magic Song" 2) first person shooter game "crisis 2015". In addition, the company will launch in September "Dahua West Tour II" and "Dahua West Tour III" of the information, and in the second half of the launch of the "Sword of the" Fighter of the information. We anticipate that NetEase will continue to launch the mobile version of the hottest games in the coming months to help it increase the number of users and realize the diversity of users.

Expected change: As a result of the second quarter's performance, we will be NetEase 2013 revenue forecast from 1.475 billion U.S. dollars to 1.513 billion U.S. dollars (Wall Street on average expected to be 1.543 billion dollars). Similarly, we have raised the earnings per share of its fiscal year 2013 from $5.27 to $5.48 (the average Wall Street forecast is $5.47). Woodman)