NetEase's latest game, 'Yan Yun Shi Liu Sheng,' features over 10,000 AI-driven non-player characters (NPCs), showcasing a pioneering use of artificial intelligence in gaming. According to Jin10, Daiwa reports that this technological application is difficult for other game developers to replicate, suggesting that the development cycle for major games still requires approximately five years, with AI's impact on development timelines currently limited. Daiwa reiterates a 'buy' rating for NetEase, maintaining a target price of HKD 257 based on SOTP calculations. In the long term, Daiwa anticipates that revenue growth from NetEase's classic game licenses will not accelerate significantly, with the launch of free servers for 'Fantasy Westward Journey' likely providing a one-time boost. Additionally, Daiwa believes NetEase's dual primary listing has structural benefits, and future inclusion in the Hong Kong Stock Connect could enhance stock liquidity and reduce long-term listing risks.