Hong Kong Stock Concept Tracking | Overseas Game Revenue Continues to Surge Institutional Continues to be Bullish on Leading Game Companies with Stable Business Growth Supporting Valuation Increase (Attached Concept Stocks)

According to Gamma Data, the domestic game market size in September this year was 30.3 billion yuan, a year-on-year increase of 15%. Among them, the overseas market was 1.7 billion US dollars, a year-on-year increase of 34%, and the domestic mobile game market was 22 billion yuan, a year-on-year increase of 11%, with the overseas market remaining strong.

CICC released a research report stating that Tencent Holdings (00700) had a year-on-year increase of 20% in mobile game revenue in September, continuing the trends of July and August.

The high growth of Tencent's revenue is gradually being released, with an expected 16% increase in mobile game revenue in the third quarter, compared to about 10% in the first half of the year. The stable business growth is expected to support the valuation increase.

NetEase-S (09999) saw a recovery in client games driven by the return of "Warcraft" and new games. The growth in new mobile games cannot offset the impact of high base numbers such as "Justice" and the speed of mobile game growth depends on the schedule for launching new games.

Bilibili-W (09626) had a revenue of 400 million yuan in September for "Three Strategies," better than the bank's previous expectations, potentially driving mobile game revenue growth in the third quarter beyond the bank/market expectations of 83%/66%.

Guotai Junan published a research report stating that the overall game market has been weak since the beginning of this year, especially starting from Q2, with a decrease in product supply. From April to July, the game market revenue showed negative growth year-on-year, until it began to recover in August and September, with a year-on-year growth of 15.1%/14.9%. The trend of recovery is significant, and if the supply continues to increase in the fourth quarter, the market is expected to further improve.

Due to various factors such as active policy improvements in the industry, increased player appreciation, diversified platforms for product launches, and most game companies having rich reserves, the team is optimistic about the future of the game industry and continues to favor companies with high-quality product reserves that can demonstrate advantages in competition.

Related Hong Kong stocks in the gaming sector include:

Tencent Holdings (00700): Tencent's game revenue accounts for 30%, with an increasing proportion from overseas. International game revenue is in Tencent's value-added services sector. Looking at the total revenue share in 2023, value-added services account for 49%, domestic games 21%, and international games 9%. In terms of game revenue, Tencent's overseas game revenue in 2023 was 53.1 billion yuan, accounting for 30% of the total game revenue. With the expansion overseas, Tencent's overseas game revenue proportion is gradually increasing, rising from 15% in 2019 to 30% in 2023. Keep an eye on the performance and launch of games such as "Delta Force," "Locke Kingdom Mobile," "King Glory World," and "Fearless Contract Mobile."

NetEase-S (09999): "Yan Yun Sixteen Sounds," "FragPunk," "Code: Infinity."

XD Inc. (02400): "Let's Go Muffin," "Heartbeat Town" performed well, with a focus on the progress of expansion outside mainland China. The "Isa" original quality test will start from October 24th to November 4th.

Bilibili-W (09626): "Three Kingdoms: Deciding the World" is in long-term operation, continuing to invest in game business exploration.

Kingsoft (03888): (Xishanju) "Jie Xianji" is exploring the field of mech combat PC games.

Baoao Family Interactive (02100): Consolidating core IP competitive advantages, continuously exploring AI technology to empower product development, and accelerating international market layout