TENCENT(HK:00700) CMS·2026-01-30 03:32Investment Rating - The report maintains a "Recommended" rating for the industry, indicating a positive outlook for the sector's fundamentals and expectations for the industry index to outperform the benchmark index [3][9]. Core Insights - In January 2026, the National Press and Publication Administration issued a total of 182 game licenses, significantly exceeding the average of 148 licenses per month in 2025. This includes 177 domestic licenses and 5 imported licenses, with a notable focus on mobile games [1][7]. - The issuance of game licenses has shown a consistent increase, with 1,306 domestic licenses and 110 imported licenses issued in 2024, and 1,676 domestic licenses and 95 imported licenses in 2025. The trend is expected to continue in 2026 [7]. - Key games that received approval include titles from major companies such as NetEase, Tencent, and Giant Network, indicating strong performance and potential for revenue growth in the gaming sector [7]. Industry Overview - The industry comprises 160 listed companies with a total market capitalization of 2,251.6 billion and a circulating market value of 2,071.2 billion [3]. - The absolute performance of the industry over 1 month, 6 months, and 12 months is 15.4%, 19.2%, and 36.0% respectively, while the relative performance is 12.9%, 4.7%, and 11.5% [5]. - The report highlights several companies with strong prospects, including Tencent, Giant Network, and others, which are expected to benefit from ongoing game releases and international expansion [7].