互联网行业：双旦拉动手游大盘恢复环比增长

Industry Rating - The report rates the internet industry as "Leading" [1] Core Insights - The mobile gaming market in China has shown a recovery with a month-on-month growth of 3% in December 2024, driven by the holiday season [4][5] - Tencent's mobile game revenue increased by 1.7 billion CNY year-on-year, while NetEase's revenue decline has slowed to a decrease of 900 million CNY [4] - New game launches are expected to contribute positively to revenue growth in 2025, with Tencent's "One Piece: Pirate Warriors" and NetEase's "Yanyun Sixteen Sounds" showing promising early performance [4][32] Summary by Sections Investment Rating - The report maintains a "Buy" rating for Tencent (700 HK) with a target price corresponding to a 14x P/E ratio for 2025 and for NetEase (NTES US) with a target price corresponding to a 13x P/E ratio for 2025 [4] Market Performance - The mobile gaming market in December 2024 saw a total revenue increase of 3% year-on-year, consistent with November's growth rate [5] - Tencent's mobile game revenue showed a year-on-year increase of 1.7 billion CNY, while NetEase's revenue decline was limited to 900 million CNY [4][19] New Game Launches - Tencent's new fighting game "One Piece: Pirate Warriors" launched on December 19, 2024, achieving a peak ranking of 5th on the iOS game sales chart with an estimated first-month revenue of 200-300 million CNY [4] - NetEase's MMO game "Yanyun Sixteen Sounds" launched on December 27, 2024, with 3 million downloads in the first five days, indicating strong user interest [4] Future Outlook - The report projects a 5% growth in the domestic mobile gaming market for 2024, with expectations of continued growth in 2025 driven by a rich pipeline of popular IP games [32] - The overseas gaming revenue for Chinese companies is expected to grow by 13% in 2024, recovering from a decline in 2023, with a focus on expanding overseas distribution and monetization capabilities [37]