Daily Investment Strategy
Daily focus：Netease （9999）
NetEase's Marvel Rivals, launched overseas on December 16, has seen considerable success, especially given that the current version features only 33 heroes, indicating potential for future character additions. Many characters have different appearances in the comics, suggesting a continuous monetization path. The NetEase team has experience in online game monetization and will continue to focus on content updates and optimizing game operations. Meanwhile, the highly anticipated mobile game “Where Winds Meet” has just been released and is receiving positive feedback. Prior to its launch, the game garnered over 35 million pre-registrations across all platforms in December, nearing the figures of last year's major title “Justice”, which generated over RMB2 billion gross receipt in its first month. “Where Winds Meet” 's performance may approach similar numbers. For reference, NetEase's share price rose by 11.5% in the month following “Justice”'s release, outperforming the HSI's 6.1% during the period. So we are optimistic towards the catalyst brought by “Where Winds Meet”. Target price: $162.
Trump will officially take office as President of the United States today
The China GDP growth for the fourth quarter of last year was 5.4%, higher than the market expectation of 5%. The cumulative growth for the whole year was 5%, consistent with the annual target set by the central government at the beginning of 2024. Although the growth target for 2024 met the central government's expectations, this year's economic growth still faces many challenges, such as the deterioration of China-US relations affecting exports and the slow recovery of domestic consumer confidence. Additionally, Trump's inauguration today may indicate that the market is entering a more turbulent period.
On Friday, the southbound trading of Hong Kong Stock Connect saw a net inflow of 8.325 billion HKD, with SMIC (981) having the largest inflow of 1.67 billion HKD, followed by Tencent Holdings (700). China Mobile (941) recorded the largest net outflow of 234 million HKD, followed by Alibaba (9988).
Wen Kit Kenny is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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