NetEase-S (09999) rose more than 4% again. As of press time, the stock was up 3.91% to HK$188.6, with a turnover of HK$1.474 billion.

The company recently released its 2026 first-quarter financial report. In Q1, NetEase's revenue reached RMB 30.6 billion, a year-on-year increase of 6.1%. Net profit attributable to shareholders was RMB 10.7 billion, up 3.6% year-on-year. Games remain the primary revenue source for NetEase. In the first quarter, revenue from games and related value-added services amounted to RMB 25.7 billion, an increase of 6.9% year-on-year, accounting for nearly 84% of total revenue.

J.P. Morgan released a research note stating that NetEase's Q1 performance was robust, with revenue and net profit exceeding market expectations by 4% and 13%, respectively. The firm maintained its "Overweight" rating on NetEase with a target price of HK$280.

A Goldman Sachs report pointed out that looking ahead, the firm believes the company has abundant catalysts for the second half of 2026: 1) New game launches. The firm expects new games to contribute RMB 5.9 billion in revenue over 12 months; 2) Strong profit growth. Operating profit is projected to continue growing by 15-20% for the remainder of the year; 3) Transition to a primary listing in Hong Kong. If included in the Southbound Stock Connect, this would help enhance the diversification of investor capital flows into the stock.