....NetEase continues to successfully differentiate its games and has built a highly defensible positioning with its two highly popular games.
....Now the company is poised to repeat this success in 2006 with its new 3-D game that has been in development for two years, as well as a new 2.5d game, and a series of casual games that it recently launched.
....We are significantly increasing our estimates to reflect continued growth in the gaming segment and improving margins. For 2005, we move from $182.8M in net revenues and $2.54 in GAAP EPS to $200.3M and $3.10. For 2006, we move from net revenues of $261.6M and GAAP EPS of $3.42 to $301.7M and $4.37, respectively.Not subscribed to The China Stock Blog? You can get updated headlines for free by adding The China Stock Blog to your My Yahoo page. Just log into your My Yahoo
....We raise our price target from $65 to $90.
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