NetEase Inc. (NTES): Assessing the potential for 2027 game pipeline; Buy (on CL)

Goldman Sachs maintains a Buy (on Conviction List) rating on NetEase (NTES.US/9999.HK). With Sea of Remnants falling short of market expectations since launch, market debate centres on three points: whether the weak performance is product-specific or signals broader issues in the company's development strategy; how successful the upcoming Ananta launch (expected mid-Jan 2027) will be and whether it can drive 2027 topline growth and the overseas story; and the company's mid/longer-term sustainable growth given its strategy of concentrating on a limited number of new games. The analysts view Sea of Remnants' underperformance as a product-specific issue, with relatively high product comprehension barriers creating a mismatch on onboarding/early-game pacing. After muted new-game performance in 2026, they assess the 2027 major game pipeline (mainly Ananta and Beneath the Mist) and believe it will boost the topline after a light 2026, expecting meaningful incremental revenue contribution nex