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.
Non farm payroll far exceed expectation
On Friday, the United States released its December non-farm payroll data, which far exceeded market expectations. The reported value increased by 256,000, higher than the market expectation of 164,000 and the adjusted previous value of 212,000. The unemployment rate also fell by 0.1 percentage points from the previous value to 4.1%. The employment data reflects that the current labor market remains strong. After the data was released, economists lowered their forecasts for further interest rate cuts by the Federal Reserve, and U.S. Treasury yields also rose.
On Friday, the Hong Kong Stock Connect saw a net inflow of 4.65 billion HKD. Among them, Tencent Holdings (700) had the largest inflow, reaching 2.58 billion HKD, followed by SMIC (981). The Tracker Fund of Hong Kong (2800) recorded the largest net outflow of 1.68 billion HKD, followed by Meituan-W (3690).
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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