NetEase experienced a significant surge in shares in Hong Kong following the approval of the mobile version of its popular PC title game. This development has heightened expectations of a profitable year for the company.
Share Price Soars
The shares climbed by 5.5% to reach 178.30 Hong Kong dollars (US$22.80) during the midday session on Wednesday. This surge brought their year-to-date increase to an impressive 26.8%. Additionally, NetEase’s U.S.-listed ADRs saw a 5.3% rise in overnight trading.
Game Approval Boost
China’s National Press and Publication Administration recently approved over 100 titles for February, expanding NetEase’s gaming portfolio. Of particular interest was the approval of the mobile version of NetEase’s hit PC title, Naraka Bladepoint. Launched in 2021, this game has achieved remarkable success both domestically and internationally, including markets like the U.S. and Japan.
Future Outlook
Analysts from HSBC, Ritchie Sun, and Charlene Liu, believe that Naraka Bladepoint’s mobile version and other upcoming releases will serve as key growth drivers in 2024. NetEase highlighted that the PC version of Naraka Bladepoint was well-received by players and ranked as a Top Seller on Steam’s Best of 2021 games list in its 2022 annual report.
Anticipated Performance
The regulatory green light for NetEase comes just ahead of the release of its fourth-quarter results, scheduled for Thursday. Analysts anticipate strong earnings for the company, attributing it to the impressive performance of popular video games such as Justice Mobile and Eggy Party.
