HK Stock Market Move | NTES-S (09999) rose by over 4% again, with a strong performance in the first quarter and Goldman Sachs pointing to abundant catalysts in the second half of the year.

NTES-S (09999) rose by more than 4%, up 3.91% as of press time, to 188.6 Hong Kong dollars, with a turnover of 1.474 billion Hong Kong dollars. On the news front, NetEase recently released its financial report for the first quarter of 2026. NetEase's revenue for the first quarter was 30.6 billion yuan, a year-on-year increase of 6.1%; net profit attributable to the company's shareholders was 10.7 billion yuan, a year-on-year increase of 3.6%. Games are NetEase's main source of revenue, with revenue from NetEase games and related value-added services for the first quarter reaching 25.7 billion yuan, a year-on-year increase of 6.9%, accounting for nearly 84% of revenue. Morgan Stanley issued a research report stating that NetEase's first-quarter performance was strong, with revenue and net profit respectively 4% and 13% higher than market expectations. The bank maintains a "hold" rating on NetEase with a target price of 280 Hong Kong dollars. According to a report by Goldman Sachs, looking ahead, the bank believes that the company will have abundant catalysts in the second half of 2026: 1) the launch of new games. The bank expects new games to bring in revenue of 5.9 billion yuan in the next 12 months; 2) strong profit growth. Operating profit will continue to grow by 15-20% for the rest of this year; 3) switching to a major listing in Hong Kong. Being included in the southbound Hong Kong stock connect program will help diversify the company's investor funding.