The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it maintains the NetEase S (09999) “gain” rating and is the first choice for the mainland online game industry, with a target price of HK$200.

According to the report, regarding the recent adjustment of monetization models for some large-scale multiplayer online role-playing games, such as “Journey to the West,” the conclusion reached during discussions with NetEase management was that there would be little impact in the short term, and that this strategic change should support the long-term healthy growth of these games.

The bank believes that the mainland's game regulatory environment is still healthy, as evidenced by the large supply of new game versions. Motong expects that new games launched by NetEase starting in the third season will accelerate game growth, and valuations will also be raised from current levels.