Ge Long Hui·2026-02-12 03:45Core Viewpoint - Morgan Stanley's report indicates that NetEase's management emphasizes the company's role as a pioneer and beneficiary of artificial intelligence technology in the gaming sector, rather than being challenged by AI world models [1] Group 1: Company Developments - NetEase is in communication with regulatory authorities regarding its dual primary listing, having met the trading volume threshold with over 55% of its trading volume on the Hong Kong Stock Exchange last year [1] - The management believes that a clear timeline for the dual listing is not yet established, but they consider it a matter of time [1] Group 2: Industry Environment - The gaming industry is currently in a favorable regulatory environment, with no preliminary discussions on imposing a consumption tax on games or altering the preferential income tax rates for high-tech companies based on R&D intensity [1] - Morgan Stanley notes that a longer deferred revenue cycle is a structural trend driven by increased user engagement [1] Group 3: Product Launch and Financial Outlook - The target launch date for the key game "Forgotten Sea" is set for the third quarter of this year [1] - Morgan Stanley sets a price target of $168 for NetEase's U.S. stock and maintains an "Overweight" rating [1]