HK Stock Market Move | NTES-S(09999) rose over 3% in early trading, successfully launching new games. JP Morgan raised its game growth forecast to 10%.

NTES-S (09999) rose more than 3% in the morning session, with a 3.36% increase as of the time of writing, reaching 160 Hong Kong dollars with a trading volume of 1.34 billion Hong Kong dollars. JP Morgan released a research report stating that due to the successful launch of "Marvel Duel" and "Yan Yun sixteen sounds", they reiterated NTES-S as the top choice in China's mainland online gaming sector this year, and raised their game revenue growth forecast from 8% to 10%. In addition, NetEase's stock price outperforms China's internet industry, mainly due to the success of its new games. The bank expects NetEase's outstanding performance to continue this year, with game revenue accelerating from 5% in 2024 to 10%; operating profit margin expanding by 1.5 percentage points; net profit margin expanding by 2.7 percentage points; net profit growing by 17%; and overseas revenue contribution reaching 15% to 20% by the end of the year. The bank predicts that NetEase's game revenue in 2025 will have two strong growth drivers, including the performance of its latest batch of new games being better than last year; while game revenue may decline year-on-year, the performance of new games continues to be impressive. The bank forecasts that NetEase's game revenue growth will return to double-digit levels from the second quarter of this year.