Report Date: 2 October 2024
Broker: MIB Securities (Hong Kong) Ltd

Game License Approvals

On 27 September 2024, the National Press and Publication Administration (NPPA) of China approved 109 domestic online games, continuing the trend of over 100 monthly approvals for the tenth consecutive month. NetEase-S (9999 HK) is one of the beneficiaries of this surge, with its titles being among those approved. This reflects an improved regulatory climate that is contributing to a significant recovery in China’s gaming market.

Market Leadership and Performance

NetEase has continued to strengthen its market position since April 2024, according to data from Sensor Tower. The company has been able to gain market share and is benefiting from the broader rebound in the gaming industry, which has been driven by the popularity of action role-playing games like Black Myth: Wukong.

Investment Outlook

NetEase-S (9999 HK) has a target price of HKD178.82, and it holds a 100% “Buy” rating, signaling strong confidence from analysts. Though MIB Securities itself does not provide a rating, the favorable outlook is driven by the company’s ability to leverage the resurgence in game approvals and its growing market share in the industry.