According to the report released by the financial APP, Morgan Stanley believes that the gaming industry is still a major highlight, continuously rolling out high-quality games, such as Tencent's Dungeon and Warrior, Bilibili's Three Kingdoms: Stratagem of the Warring States, etc. As the summer approaches, the bank remains optimistic about the upcoming high-quality games, which may become key catalysts for further company growth and profit visibility. The bank believes that a more mature industry will accelerate market integration, which will naturally benefit the leading industry players.

The bank stated that it raised the fiscal year forecast for the game Dungeon and Warrior from RMB 6 billion to RMB 18-20 billion, driving a 5% increase in Tencent's game revenue forecast. The bank is bullish on the overall online gaming industry and has raised Tencent's target price from HK$473 to about HK$481, up 2%. On the other hand, although the high base effect and fewer new game releases, the NTES.US post-market iOS revenue of NetEase-S (09999) is expected to expand 15% YoY. At present, the market's forecast for the growth prospects of game revenue for the whole year has largely reflected concerns about regulatory adjustments, so the bank's view on Netease is not too pessimistic.