Daily Investment Strategy
Daily focus ： Real-Time Quote
NetEase (9999): In the fourth quarter of 2025, total revenue reached Rmb27.5bn, representing a 3% year-on-year increase. While online game revenue growth was a modest 3.5% at Rmb21.3bn due to a high comparison base from the previous year, deferred revenue surged by 32%, signaling strong operational momentum. The company maintained healthy profitability with an overall gross margin of 64.2%, while the gaming segment's margin reached 70.5%. For the first quarter of 2026, revenue is projected to grow by 8% to Rmb31.2bn, largely driven by Where Winds Meet, which has already surpassed 80mn players globally. Furthermore, the deep integration of generative AI—evidenced by the deployment of over 10,000 intelligent NPCs—enhances development efficiency and player engagement. Combined with the anticipated third-quarter 2026 launch of Sea of Remnants, these technological advantages and a robust product pipeline are expected to reinforce long-term market positioning.
Central bank's reaffirmation of its loose monetary policy stance
A series of favorable policies, including the State Council's strong promotion of the AI strategy and new-type productivity, coupled with the central bank's reaffirmation of its loose monetary policy stance, have provided a bottom support for market sentiment. Although the slight increase in January's CPI and the narrowing decline in PPI indicate a slight easing of deflationary pressures, the strength of the domestic demand recovery remains to be seen. Affected by the overnight pullback in Chinese concept stocks and the rebound in US Treasury yields, the market's upward momentum may be temporarily limited. Funds are expected to rotate between AI technology themes and defensive sectors. Investors are advised to focus on the details of policy implementation and subsequent liquidity release signals.
Hong Kong Stock Connect recorded a net inflow of HK$4.81bn on Wednesday, with Tencent Holdings (700) recording the largest net inflow at HK$730mn, followed by Zijin Gold International (2259); Alibaba (9988) recorded the largest net outflow at HK$520mn, followed by SMIC (981).
Leung Kai Tong 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/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
