Goldman Sachs released a research report indicating a constructive attitude towards Netease (NTES.US) (09999.HK), and its game FWJ has had an indelible but controllable impact on second quarter computer game revenue. FWJ is still undergoing structural transformation in the direction of new economic models, and the bank believes that its terminal value has not changed.

The bank pointed out that Netease's first quarter computer game revenue declined by 15%, mainly due to the adjustment of FWJ. Although the fundamental situation remained stable in the second quarter, the bank believes that the recent weakness in stock price is mainly driven by emotions. The bank believes that the market has digested the factors of weak second quarter and therefore maintains the "buy" rating on the stock, with a target price of US$125 for the US stock and HK$196 for the Hong Kong stock.