On September 15, NTES rose 3.02% in regular trading, trading at HK$187.5/share, with turnover of HK$291 million. The stock gained momentum after receiving a first-time coverage initiation from SDIC Securities International.
SDIC Securities International initiated coverage on NTES with a \"Buy\" rating and a target price of HK$220, implying a 16x PE multiple. The research report highlighted that NTES posted net revenue of RMB 60.7 billion in the first half of the year, up 7.0% year-over-year, while operating profit surged approximately 27% to RMB 24.7 billion. The significantly faster growth in operating profit versus revenue was cited as validation of the company's strategic shift from a scale-oriented to a profit-oriented model. The broker also noted that NTES's leading industry position warrants a valuation premium, and that AI-driven tailwinds for the gaming sector could further lift its valuation center.
Additionally, NTES's flagship titleErta Saga announced a global launch date of January 15 next year at the Gamescom event, while the Guangzhou municipal government included NetEase's self-developed engine in its gaming industry support project list.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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