Financial News
Written by: Zhang Weilun
2021-01-28 14:46
Last update date: 2021-01-28 14:46
Yamato Sings Well Tencent Holdings (0700) and NetEase (9999) raised the target price of the former from 700 yuan to 850 yuan, and NetEase’s target price from 187 yuan to 235 yuan, giving them a "buy" rating.
Daiwa pointed out in the report that it is more optimistic about the growth of the mainland mobile game industry this year, due to higher quality of games to be released.
The bank also pointed out that NetEase and Tencent are lobbying Android app stores to reduce the intermediate cost from 50% to 30%. It is expected that mobile game companies can benefit from a more reasonable profit distribution and achieve long-term sustainable growth.
At the same time, it also pointed out that mainland mobile game companies can release new games in a bypass, so that downstream channels have more bargaining power.
Tencent NetEase Daiwa Securities Major Report