HK Stock Market Move | NETDRAGON(00777) rose over 4% in the afternoon, "Magic Domain World" is about to start its first test, institutions are optimistic about the new game bringing incremental contributions.

NETDRAGON (00777) rose more than 4% in the afternoon, up 3.98% to HK$10.18 at the time of publication with a turnover of HK$33.85 million. On the news front, on December 20th, NETDRAGON officially launched the first test of its self-developed genuine version of "The World of Magic Domain". It is reported that this game is a 3D top-down MMORPG game. CITIC SEC previously pointed out in a research report that it is expected that the 4-5 new games that NETDRAGON is about to release will contribute significantly to the company by 2025; the company's education business is expected to continuously improve its long-term profitability through the SAAS business. Maintain a "buy" rating on NETDRAGON with a target price of HK$18. ANXIN International previously stated that the fundamental base of NETDRAGON's games remains strong. In the first half of the year, the company's gaming business revenue was RMB 1.86 billion, accounting for 87.8% of gaming and application service revenue. The three flagship IPs "Magic Domain", "Conquest", and "Soul of the Blade" have all achieved year-on-year and quarter-on-quarter growth in domestic PC game revenue. In addition, the company's new games are poised for release, and the progress of the following game pipeline is smooth.