Daiwa has a buy rating on NetEase, and if it restarts its partnership with Blizzard, it will bring

Mondo Technology Updated on 2024-01-31

Hong Kong stock research agency news, on December 28, Daiwa released a research report saying that the bank believes that Blizzard's flagship games such as Diablo III may fully restart operations in China, and if the news is true, it will be a hot spot in the Chinese game market. However, relaunching the game requires a series of preparations, including rebuilding the operation team, testing the server and related systems, and re-applying for the game version. Yamato expects the process to take two to three quarters.

In addition, Daiwa also referred to the Measures for the Administration of Online Games (Draft for Comments), recently released by the National Press and Publication Administration of China. While the revised measures have not yet been confirmed, the actual impact is estimated to be much smaller than last Friday's market reaction. The bank believes that further remedial measures in the coming months should boost the recovery of market sentiment. Against this backdrop, Daiwa is optimistic about NetEase's prospects and advises investors to buy the dip.

The re-cooperation between NetEase and Blizzard may bring new growth opportunities for NetEase, and the return of Blizzard's games is good news for Chinese gamers, and it is estimated that the cooperation will increase NetEase's profitability by a single digit.

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