Stock Track | NetEase Soars 5.31% as Goldman Sachs Recommends Buy and Stock Gains Hang Seng Index Inclusion

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NetEase's stock surged 5.31% during intraday trading, marking a significant 24-hour gain for the Chinese gaming company. The movement comes amid positive analyst sentiment and structural changes to the company's market positioning.

Goldman Sachs named NetEase as one of its top undervalued stocks to buy, citing potential catalysts including new game launches this month and attractive valuation metrics. The investment bank noted that NetEase trades with a forward price-to-earnings ratio of 13, substantially lower than its five-year average of 16.5, and has differentiated itself as a compelling 'non-AI' compounder in the market.

Additionally, NetEase received confirmation of its inclusion in the Hang Seng Index series via Stock Connect, effective after market close on July 17. This follows the company's recent transition to dual-primary listing status and inclusion in Stock Connect eligibility. Multiple institutions including CICC and Morgan Stanley have issued bullish outlooks, with analysts broadly expecting revenue and earnings to re-accelerate in the second half of the year, supported by new game launches including Sea of Remnants.

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