NTES: The Growth Momentum of Games Continues In 2Q20; Growth Likely To Be Maintained On Strong Game Pipeline
NTES will report 2Q20 results on August 13th before the markets open with a call at 7:30am EST. We are positive on NTES’s fundamentals as the company continues to focus on game developments. On a short terms basis, since the game business was very strong in 1Q20 with 14.1% Y/Y growth, higher than prior quarters, we believe 2Q20 is likely to be lower than 1Q as most of the students studied at home so they have less leisure time. However, the company released the list of its 2020 game pipeline on May 20th; with that, we believe the game business is likely to be strong throughout the year of 2020.