Goldman Sachs published a research report that noted the significant difference in performance of mainland gaming stocks from the beginning of the year to now, mainly due to different traditional gaming promotion forces and different performance of new games.

The bank expects fierce competition to continue in the mainland gaming market for the rest of this year, especially during the summer. The gaming stocks covered by the bank will have more game releases, and promotions will become more aggressive.

Goldman Sachs stated that Tencent (00700.HK) and Netease (09999.HK) are still its preferred gaming stocks. Among them, Tencent's stock price performance during this summer is worth paying attention to, including the long-standing popularity of its game "Dungeon Fighter Online", the launch of "HOF" in the third quarter of this year, and the accelerating growth of its mobile game company "Supercell". As for Netease, its games "Eternal Crusade MOBILE" and "Yanyun Sixteen Sheng" will also be released in July or August this year.

Considering the above factors, Goldman Sachs has raised Tencent's target price to 477 yuan and rated it as "buy"; Netease has a target price of 196 yuan and is also rated as "buy". (js/cy)

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