On September 28, NTES rose 3.04% in regular trading, trading at 186.8 HKD/share, with turnover of 229 million HKD.
On the news front, the Asian Games esports events are providing a sustained catalyst for the company's gaming brand. NTES's flagship title Naraka: Bladepoint defeated Thailand 3-0 in the Asian Games esports final on September 24, clinching the first gold medal for China's team in this edition — and the first-ever Asian Games gold in a Chinese martial arts-themed esports event. Meanwhile, the Identity V Asian Games edition competition is scheduled from September 28 to 30, extending high-visibility exposure for the company's gaming portfolio.
On the financial side, the company reported H1 revenue of 60.7 billion yuan, up approximately 7% year-over-year, with gaming and related value-added services generating 50.7 billion yuan, up roughly 8%. However, adjusted net profit declined approximately 9% to 19 billion yuan, pressured by higher selling, marketing, and R&D expenses. Goldman Sachs maintains a Buy rating with a target price of 263 HKD, while Guotou Securities initiated coverage with a Buy rating and a 220 HKD target.
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