Glonghui, April 11 | BOC International released a report saying that yesterday, Blizzard China and NetEase jointly announced an updated agreement and will return to the Chinese market one after another from this summer. The bank believes that Blizzard's resumption of cooperation will have limited impact on short-term performance, and that the agreement with Microsoft will help enhance the space for long-term overseas cooperation between the two sides. The agreement between the two parties to promote the launch of new NetEase games on platforms such as XBOX will facilitate NetEase's multi-terminal layout for overseas games. Assuming Blizzard's return in the second half of the year, the bank expects mobile game revenue to increase by 11% and 19% respectively in 2024 and 2025, respectively. Mobile games will resume a growth rate of more than 20% in the second half of the year, increasing the company's total revenue by 2% to 3%, and the impact on profits is limited. Based on recent fluctuations in turnover, the bank lowered NetEase's 2024 revenue and profit expectations by 2% and 4% respectively, and the target price for H shares was lowered from HK$206 to HK$194. It is expected that the launch of the blockbuster mobile games “Everlasting Mobile Game” and “16 Sounds of Yan Yun” will boost game revenue growth and maintain a “buy” rating this year.