Dongwu Securities: Initiated coverage on NetDragon (00777.HK) with a "buy" rating. Diversified investment to boost performance, target price of HKD 17.59.

According to the ZhuoTong Finance and Economics APP, Dongwu Securities released a research report stating that the expected net profit attributable to Netease (00777.HK) in 2025-2027 will be 4.0/6.7/6.8 billion yuan, and the current market value corresponding to PEs will be 13.6/8.1/8.0 times. Using the SOTP valuation method, the company's target market value is 8.5 billion yuan, corresponding to a target price of 17.59 Hong Kong dollars per share. The bank is optimistic about the company's stable operation of existing games, the benefits of the education business from the equipment renewal cycle, AI fully empowering game education, and diversified investments contributing to performance growth. In the first coverage, a "buy" rating is given.