Hong Kong-listed shares of NetEase briefly jumped more than 3% to HK 199.1, reaching a new high.

NetEase's gaming business could strengthen its growth momentum on a solid pipeline of new games and resilient legacy titles, Daiwa analysts say in a research note.

At its annual game day, the Chinese videogame maker showcased upcoming titles such as "Marvel Mystic Mayhem" and "Destiny Rising," the analysts say.

However, Daiwa expects NetEase to see margin volatility as cross-platform and international titles, which have lower margins, grow.

However, overall profitability should remain stable through disciplined cost and resource management, they add.

NetEase is well-positioned to benefit from industry trends toward blockbuster franchises and cross-platform games as it is prioritizing high-potential and long-lifecycle products, they add.

While maintaining a buy call, Daiwa raises NetEase's H-share target price to HK$235.00 from HK$210.00. Shares are last at HK$190.10.