Organization: Apple's decision to lower the fees of the App Store in China has provided favorable conditions for Tencent and NetEase.

Morningstar analyst Ivan Su stated in a report that Apple's reduction of commission fees from game developers on its mainland China App Store is a favorable factor for Tencent and NetEase. She predicts that Apple's fee reduction, along with Google lowering its Play Store service fees, may improve the profit margins of these Chinese gaming companies and increase their operating profit by a low single-digit percentage this year. She added that if Android app stores operated by Huawei and Xiaomi group also follow suit, the operating profit of these two companies may increase by a mid to high single-digit percentage. Morningstar maintains a fair value estimate of HK$800 for Tencent and $200 for NetEase, noting that these two stocks are still significantly undervalued.