Daiwa Securities recently stated that it reiterated its “buy” rating on NetEase. Analysts pointed out that, driven by better-than-expected mobile game revenue and game business profit margins, NetEase's first-quarter performance was strong, and Daiwa Securities listed the company as a defensive stock amid current market fluctuations. Analysts believe that the profit margin of NetEase's game business performed well in the first quarter, although it is expected that the original will be launched for the rest of this year andIPLicensed games will have a certain impact on the company's gross margin, but it is expected that NetEase's overall game business gross profit will continue to increase year over year throughout the year13%, gross margin is expected to be reached64%-65%, total game revenue for the whole year is expected to increase year by year9%, higher than Daiwa Securities's original expectations.