According to a research report published by Lyon, NetEase's new game “The Sea of Forgotten” is disappointing, but NetEase is still expected to maintain steady revenue growth. It is predicted that total revenue for the third quarter of this year will increase 6% year over year to 30.2 billion yuan, and adjusted EBIT will increase 31% year over year to 11.6 billion yuan. Thanks to Evergreen Gaming, online game revenue is expected to increase 8% year on year and gross margin expansion. Revenue from games and value-added services for the third quarter is expected to increase 7.7% year over year to 25.1 billion yuan, with game revenue rising 7.8% year over year to 24.6 billion yuan, driven by steady performance of “Journey to the West”, “Infinite Border”, “Egg Boy Party” and “Onmyoji”. “World of Warcraft: Eternity” and the open world game “Infinity” are scheduled to be launched in November this year and January next year, respectively. Lyon is expected to drive NetEase's game business growth next year. The bank is optimistic that NetEase is the fourth largest game company in the world. It has the advantage of integrating AI into games, keeping the US stock “outperforming the market” rating and target price of $150 unchanged.

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