Morgan Stanley has indicated that, should the current strong momentum persist, Kuaishou's newly launched game, "Lord of the Mysteries," could become a significant contributor to the company's profitability starting in the third quarter. In a research report, analyst Yang Liu and the team noted that the game has the potential to generate approximately 2 billion yuan in annual revenue, and with its high incremental profit margins, it could bolster Kuaishou's earnings guidance for both the third quarter and the full year.

Since its launch on August 21, the game has consistently maintained a ranking between 15th and 20th on the iOS bestseller chart. This performance suggests a stable and robust user reception, which underpins the positive outlook from Morgan Stanley. The analysts believe that the game's success could be a key factor in driving Kuaishou's financial results upward in the coming quarters.

Furthermore, the report highlights that "Lord of the Mysteries" may pose competitive pressure on NetEase's long-running hit game "Justice Online." This potential rivalry could reshape the competitive landscape in the gaming sector, as Kuaishou leverages this new title to strengthen its market position and diversify its revenue streams.