Morgan Stanley has issued a research report reiterating its Overweight rating on NetEase (NTES.US). The report notes that NetEase-S (09999) will achieve dual primary listing status tomorrow (the 30th), a timeline significantly ahead of the bank's previous expectations.

This development fuels anticipation that the company's H-shares could be included in the Southbound Stock Connect program within one to two months, which is expected to trigger a valuation re-rating.

Additional positive catalysts highlighted include the upcoming launch of the new game "Forgotten Sea." The PC version is scheduled for release in mainland China on July 9th, with the mobile version to follow closely in July, positioning it to capture the peak summer gaming season.

Furthermore, the game "Justice: New World," which launched on June 26th, achieved a bestseller ranking between 5th and 10th over the weekend, with player numbers reaching a two-year high.

Morgan Stanley views these three major positive catalysts as supportive of its investment thesis, leading it to maintain an Overweight rating on NetEase (NTES.US) with a price target of $158.