JP Morgan released a research report indicating that Netease-S (09999.HK) (NTES.US) will launch three blockbuster games next month. The open-world survival game "Once Human" will undergo global public testing on July 10th. The mobile game "Yongjie Wujian" and the PC version of "Yanyun Sixteen Sounds" will be released on July 25th and 26th, respectively. They are all highly anticipated by the market, and it is expected that many new online games can accelerate the company's gaming revenue growth in the second half of the year, and bring about revaluation potential for its stock.

The bank believes that the current valuation of Netease corresponds to a predicted PE of 13 times in 2024, which is a good entry point. It also pointed out that the impact of the adjustment of the trading system of the PC version of "Journey to the West" has stabilized recently, and it is believed to help alleviate the investors' concerns about the performance of existing game revenue. It is reiterated as the top choice in the mainland network game sector, with a rating of "shareholding", and a target price of HK$200 for H shares and US$130 for US stocks.

JP Morgan currently predicts that the total revenue of the mobile game "Yongjie Wujian" will reach RMB 10 billion in the first 12 months after its launch, compared with market estimates of RMB 5 billion to 6 billion. As for the PC version of "Yanyun Sixteen Sounds", JP Morgan conservatively expects the total revenue in the first 12 months to be about RMB 3 billion to 4 billion.