＜Research＞Haitong Int'l Upbeat on NetEase's Summer New Game Launches, R&D Strength in Leading Games

　　Haitong International released a report that NetEase (NTES.US) recently made commercialization adjustments to the end-game “Journey to the West of Dreams” (literal translation of “《夢幻西遊》”), which aroused market concern about the game's lifecycle and its impact on NetEase's high ARPPU cash flow model. The company's stock price has drifted lower since 21 May, slumping more than 10%.

　　The broker was optimistic about NetEase's performance of new game launches during summer holiday and R&D strength in long-term leading games. It is expected that the “Eternal Hijacking Mobile” (literal translation of 《永劫手遊》) is expected to be online in early August. The current official website bookings approximate more than 30 million, whereas TapTap bookings approximate 6.48 million. The game began final testing on 19 June and the current player feedback is positive. It is expected that the first year's sell-through will exceed RMB5 billion, which is one of the biggest sources of flexibility for NetEase's results performance in 2H.

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