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<Research>Daiwa: Mkt Overreacts to AI Disruption to Game Sector; Top Picks TENCENT/ BILIBILI-W/ Others w/ Ratings Buy
Recommend
33
Positive
41
Negative
11
The market overreacted to the impact of AI disruption to the game industry, and believing that core creative leadership remains in human hands, Daiwa released a research report saying. The broker reiterated its Positive rating on China's online game sector, with top picks including TENCENT (00700.HK), BILIBILI-W (09626.HK) and NTES-S (09999.HK).

Daiwa was bullish on TENCENT, BILIBILI-W and NTES-S, believing that they possess comprehensive capabilities, vision advantage and live-operation strength.

Related News G Sachs: Mainland Gaming Sector Shows Resilience in 1Q26, Multiple New Game Launches to Sustain Momentum
The table below shows Daiwa's ratings and target prices for the relevant stocks:

Stock | Rating | Target Price

Bilibili (BILI.US) | Buy | US$32
BILIBILI-W (09626.HK) | Buy | $250
NetEase (NTES.US) | Buy | US$165
NTES-S (09999.HK) | Buy | $257
TENCENT (00700.HK) | Buy | $710

Related NewsG Sachs Expects BILIBILI (09626.HK) 1Q Net Profit to Surge Over 60%, Resilient Performance; Reiterates Buy


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