NetEase-S (09999) saw its shares surge 5.41% during intraday trading on Friday, reflecting strong investor confidence in the company's gaming portfolio.
The rally follows the success of its game "YanYun Six Echoes," which topped the Chinese iOS game bestseller chart after its anniversary update. Analysts project the game's first-year revenue to reach 2-3 billion yuan, with positive feedback from overseas players. Additionally, NetEase's robust pipeline, including upcoming titles like "Forgotten Sea" and "Masterless Star Abyss," has bolstered market optimism.
The company's deferred revenue also grew by 25.3% year-on-year in Q3, with game revenue recognition expected to drive profits over the next two quarters. Huatai Securities and First Shanghai have highlighted NetEase's strong growth potential, further supporting the stock's upward movement.
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