Morgan Stanley's report stated that Netease's (NTES.US) mobile game "Endless Frontier" which will be launched on July 25th, is believed to be the key gaming product of the year. Due to the game's strong traction in the international market, it is estimated that the gross income of the game in China for the first year could reach 6 billion RMB. However, attention should also be paid to market competition and promotional expenses.

The report pointed out that the PC game version of "Endless Frontier", which was launched in the third quarter of 2021, has accumulated over 40 million users. The mobile game version currently has over 40 million pre-registered users in China, and its ability to monetize is expected to be comparable to the PC version. The game will provide both free mode and in-game consumption.

According to Morgan Stanley's prediction, Netease's stock price will maintain resilience before the game is released, but its earnings growth this year is still limited, mainly due to the system adjustment of its PC games "FWJ" and "Egg Pie Party". The rating is maintained as "synchronizing with the market", with a target price of 100 USD, equivalent to a forecast PE ratio of 13 times this year.