GO
| HSI1 | 24,507.81 | -265.52 | 254.67B |
| HSCEI1 | 8,804.42 | -78.53 | 88.03B |
| Back Zoom + Zoom - Block Traded | |
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2025-08-01 11:03:32 In its research report, HSBC Global Research highlighted three emerging trends in China's online gaming industry. First, PC games are experiencing steady growth, with robust distribution channels supporting further expansion. At the same time, players are topping up mobile games through dedicated platforms and company websites, which now account for about 40-50% of total mobile gaming revenue, a trend expected to persist. If channel costs improve further, the broker's sensitivity analysis suggests that operating profits for TENCENT (00700.HK) and NTES-S (09999.HK) (NTES.US) could see low- to mid-single-digit growth. Additionally, while shooting games make up 30% of global revenue on the PC gaming platform STEAM, they only make up 15% of mobile gaming revenue in China for 1H25. Thanks to new gameplay modes in shooting games, HSBC Global Research is optimistic about the growth potential of this genre in both the Chinese and overseas PC markets. As a dominant player in this segment, TENCENT is seen as the most likely beneficiary. Finally, the report expects that theme games with high daily active users (DAU) will continue to perform well with fewer new game releases in 2H, and games from smaller studios will also attract attention. In China's iOS mobile gaming market, TENCENT and BILIBILI-W (09626.HK) (BILI.US), as indicated by the report, saw YoY market share growth in 1H, though there was a dip in July due to a higher base. In terms of stock selection, HSBC Global Research remains bullish on gaming stocks over consumer goods, favoring TENCENT, NetEase, and Bilibili. All of them continued to be rated as Buy, with a target price of HKD650 for TENCENT, USD158 for NetEase's US shares, and USD25.5 for Bilibili's US shares. ~ AAStocks Financial News Web Site: www.aastocks.com | |