Stock Track | NTES-S Soars 5.11% to Record High on Strong Game Performance and Analyst Optimism

Stock Track
Sep 09

NTES-S (09999) shares surged 5.11% in intraday trading on Tuesday, reaching a record high of HK$230.8. The stock's impressive performance comes on the heels of positive news regarding the company's gaming division and bullish analyst forecasts for the third quarter.

The primary catalyst for the stock's upward movement appears to be the successful beta launch of "Destiny: Rising," the first mobile game based on the popular "Destiny" IP. Developed by NetEase's Titan Studios under official authorization from Bungie, the game has been released in over 160 countries and regions. Industry data reveals that within just three days of its overseas beta launch, the game's iOS revenue reached 8.54 million yuan, indicating a total revenue of at least 17 million yuan across all platforms.

Adding to the positive sentiment, analysts from Orient Securities and China Merchants Securities have expressed optimism about NTES-S's third-quarter performance. Orient Securities noted that the company's Blizzard games have gradually resumed operations, with titles like "Eggboy Party" showing excellent performance during the summer period. The upcoming releases of "Destiny: Rising" and "Diablo 2" are expected to further drive growth momentum. China Merchants Securities highlighted that recent major product launches, including "Marvel Snap," "Infinite Lagrange," and "All-Star Street Ball Party," have exceeded market expectations in terms of user numbers and revenue. The company's effective cost management strategies have also contributed to improved efficiency, leading analysts to revise earnings forecasts upward.

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