TENCENT(HK:00700) Zhi Tong Cai Jing·2025-10-22 23:23Core Insights - The gaming industry in China is experiencing a high prosperity cycle, with a significant number of game approvals indicating strong demand and supply dynamics [1][2] - The approval of 159 domestic games in October is the second highest this year, reflecting ongoing growth in the sector [1] - The A-share gaming sector has seen substantial stock price increases, with the Shenwan secondary gaming index rising approximately 66% year-to-date [2] Domestic Game Approvals - In October, 159 domestic games received approval, with 73 categorized as mobile-casual and 70 as mobile games [1] - Notable games include Tencent's "八荒奇旅," 37 Interactive's "生存33天," and others from companies like ST中青宝 and 祖龙娱乐 [1] Import Game Approvals - Seven new imported games received approval in October, including "蜡笔小新" from 游族网络 [2] - The total number of game approvals this year has reached 1,441, maintaining a consistent monthly issuance rate [2] Market Performance - The gaming sector has shown strong performance, with several stocks doubling in value this year, including 巨人网络 and 吉比特 [2] - The current valuation of the gaming sector remains attractive, prompting recommendations for increased investment [1][2] Future Growth Projections - Omdia forecasts that the total revenue from game subscriptions in the Asia-Pacific region will grow from $6.5 billion to $9.4 billion between 2025 and 2029 [3] - The domestic self-developed online game market saw a 19% year-on-year growth in the first half of this year, indicating a robust recovery [3] Company Performance Highlights - Tencent reported a revenue of 364.53 billion yuan in the first half of 2025, with a 13.7% year-on-year increase, driven by its gaming and social services [4] - 祖龙娱乐 achieved a revenue of 634 million yuan in the first half of 2025, a 44.4% increase compared to the same period last year, attributed to new game launches [4] - 友谊时光's revenue reached 623 million yuan in the first half of 2025, marking an 18.5% increase, with a significant turnaround in profitability [5] - 网易 reported a net income of 56.72 billion yuan in the first half of 2025, with its gaming segment showing stable performance and growth [6]