JP Morgan views NetEase as the top choice in digital entertainment and assigns an "Overweight" rating

AASTOCKS
2026.04.10 02:23

JP Morgan published a research report indicating that in the next 12 months, the preference order for Chinese digital entertainment companies is as follows: NetEase-S (09999.HK) > Bilibili-W (09626.HK) > Kuaishou-W (01024.HK), with "overweight" ratings assigned to NetEase and Bilibili, and a "neutral" rating for Kuaishou. The report reaffirms NetEase as the industry favorite, noting that although short-term catalysts are limited, its current forecasted price-to-earnings ratio for 2026 is 13 times, which represents a 25% discount compared to the 5-year average, making it attractive in light of the projected 17% growth in operating profit from 2026 to 2027.

The bank also believes that Bilibili is a recent market risk preference stock. In addition to its rapid profit growth, the upcoming launch of a new pause screen advertisement (April 2026) and a new game release cycle starting in the second quarter of 2026 are also major catalysts driving the stock price up.

JP Morgan's rating for Kuaishou is "neutral," and it believes that investors' main focus will be on competitors of Kling AI (for example, the newly launched video generation model Happy Horse). However, the separate valuation of Kling AI within Kuaishou indicates potential upside for its stock price

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