Xiaomo is optimistic about the profit prospects of the game business this year and reaffirms that NetEase is the first choice for the Chinese game industry.
The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that NetEase (09999) was added to the positive watch list, mainly because NetEase will enter a new game release cycle. It is expected that key blockbusters such as “Legend of the Condor” mobile game will be released in the second season in the second season. It is expected that its stock price will respond positively in the first half of the year.
The bank pointed out that the last NetEase game release cycle was in the third quarter of last year. At that time, the main games “Against the Cold” mobile game and “Peak Speed” were launched, driving its stock price to outperform the KraneShares Central Internet Index ETF (KWEB) by more than 20% from June to November last year. The company will hold an annual game conference on May 20. The visibility of the game product line will increase from 2025 to 2026. Motong is expected to become another stock price catalyst. The corresponding target price was raised to HK$200, indicating optimism about the profit prospects of the game business this year and reaffirming that NetEase is the first choice for the Chinese game industry.