Macquarie: Continues to be optimistic about the overall gaming industry, market consolidation is beneficial to leading participants.

Macquarie released a research report stating that the gaming industry is still a major highlight, with the continuous launch of high-quality games such as Tencent's "Dungeon and Warrior" and Bilibili, Inc. Sponsored ADR Class Z's "Three Kingdoms: The World Conquering". As we enter the summer, the bank remains optimistic about the upcoming high-quality games that will be launched, which could further boost the visibility of CKH HOLDINGS' profits. The bank believes that a more mature industry will accelerate market consolidation, which will naturally benefit leading industry participants. The bank stated that the fiscal forecast for the game "Dungeon and Warrior" has been significantly raised from 6 billion RMB to 18 billion to 20 billion RMB, driving a 5% increase in Tencent's game revenue forecast. The bank continues to be positive about the overall online gaming industry, raising Tencent's target price from 473 Hong Kong dollars to about 2% to 481 Hong Kong dollars. On the other hand, despite the high base effect and fewer new game launches, NTES-S (09999) (NTES.US) reported a 15% increase in after-hours iOS revenue year-on-year. The market is currently forecasting growth prospects for game revenue for the year, which largely reflects concerns about regulatory adjustments, so the bank's view on Netease Inc Sponsored ADR is not too pessimistic.