互联网行业：10月手游大盘持平，腾讯流水稳健，网易流水降幅收窄

Industry Investment Rating - The report rates the internet industry as "Leading" [1] Core Insights - The domestic mobile game market remained stable in October, with Tencent's revenue showing resilience and NetEase's revenue decline narrowing [1][5] - Tencent's domestic mobile game revenue increased by 1.1 billion CNY (+13% YoY), while NetEase's domestic revenue decreased by 400 million CNY (-10% YoY) [2][12] - The report highlights the performance of new games and the impact of high base figures from previous years on revenue trends [2][8] Summary by Relevant Sections October Mobile Game Performance - The total revenue of top mobile games tracked in October showed a slight decline of 1% YoY and 2% MoM, primarily due to high base figures from games like "逆水寒" and "崩坏：星穹铁道" [5][6] - Tencent and NetEase had 5 and 3 titles respectively in the top ten revenue rankings, with "无尽冬日" achieving a revenue of approximately 750 million CNY in October [1][5] Investment Implications - Tencent (700HK/Buy, current price corresponding to 17x 2024 P/E) saw a 15% YoY increase in mobile game revenue, with expectations for continued growth in Q3 and Q4 [3][22] - NetEase (NTES US/Buy, current price corresponding to 11x 2024 P/E) experienced a 9% YoY decline in mobile game revenue, but the decline rate has significantly narrowed compared to Q3 [3][22] Game Launches and Regulatory Environment - October saw no major new game launches, but several new titles were released in Q3, with NetEase's "炉石传说" leading in performance [2][8] - A total of 113 domestic and 15 imported game licenses were issued in October, indicating a normalization in the regulatory environment [19][20] Company Valuations - Key gaming companies are rated as follows: Tencent at 17.1x 2024E P/E, NetEase at 11.4x 2024E P/E, and others showing varying valuations [24][25]