Group 1 - HSBC's report highlights the success of Roblox's new game "Grow a Garden," which has reached a record 21 million concurrent players and topped the Roblox charts [1] - The success of "Grow a Garden" indicates Roblox's increasing strength in organic content acquisition and development, contrasting with the high-cost model of traditional gaming [1] - HSBC has raised its target price for Roblox from $91 to $115, reflecting confidence in the company's ability to maintain a leading edge in content release frequency [2] Group 2 - Due to the success of "Grow a Garden," HSBC has increased its booking forecast for Roblox's fiscal year 2025/26 by 2% and raised its diluted earnings per share estimate by 11% [2] - The report emphasizes Roblox's unique advantages in the online gaming sector, particularly among younger audiences, and anticipates revenue and profit margin growth driven by improved economic conditions and market potential [2] - HSBC has adjusted its 2029 fiscal year adjusted EBITDA expectation for Roblox to $3.233 billion, up from $3.08 billion, and increased the valuation multiple from 29x to 35x [2]

Investment Rating - The report maintains a positive outlook on experience and learning-related services consumption names, recommending eight quality consumer services with an average forward P/E of 17x and 19% year-on-year sales growth [31]. Core Insights - Despite overall lackluster consumption trends in China post-reopening, selected "new consumption" stocks have significantly outperformed the MXCN index, with an average weighted index for Lunar New Year consumption rising by 21% compared to 10% for MXCN through June 12 [5][6]. - The ACGN sector has shown remarkable performance, with stocks like Pop Mart and Bloks rising by 155% and 94% respectively, while other sectors like Hainan travel/shopping and e-bikes lagged behind [5][6]. - The report highlights a structural shift in consumer behavior towards services over goods, with services consumption categories such as Transport & Communications and Education, Culture & Recreational Services growing at 15% and 18% year-on-year in 2023, compared to overall consumption growth of 9% [5][6]. - The report identifies nine experience and learning-related consumption names that are expected to benefit from favorable seasonal spending trends during the summer [5][31]. Summary by Sections New Consumption Trends - Two key trends identified are affordable treats, including ACGN goods and government-subsidized trade-ins, and experience-related consumption such as movies and travel [6][31]. - The report notes that leading affordable treats have outperformed year-to-date, indicating a shift in consumer preferences towards smaller pleasures rather than big-ticket items [5][6]. Valuation and Growth Potential - Valuation levels for top new consumption names are now comparable to established global brands, with significant upside potential for future growth [5][6]. - The report emphasizes that the ability to surprise on future growth is crucial for maintaining valuations in the new consumption space [5][6]. Recommendations - The report recommends focusing on experience and learning-related services, which are expected to benefit from seasonal trends and a structural shift towards services consumption in China [31]. - Specific companies highlighted include Tencent, NetEase, Trip.com, and Kuaishou, which are positioned well for growth in the digital entertainment and travel sectors [31].

Core Insights - Meta has modified its advertising policy for the Indian market, allowing advertisers to promote real money gambling games, subject to specific requirements [1][4] - The Indian real money gambling market is projected to reach $3.2 billion in 2024, accounting for 85.7% of the online gaming market [1][5] - The new policy simplifies the process for advertisers by recognizing licenses issued by the All India Gaming Federation (AIGF) [4] Group 1: Policy Changes - Meta now requires advertisers to submit a special application form along with their legal gambling operating license for approval [2] - The policy change includes age restrictions, allowing advertisements only for users aged 18 and above [4] - Advertisers must specify the regions where ads will be displayed, avoiding areas where gambling is prohibited [4] Group 2: Market Overview - The real money gambling market in India is primarily dominated by two categories: card games (mainly Rummy) and fantasy sports [5] - In 2023, card games accounted for approximately 37% of the total revenue in the real money gambling sector, while fantasy sports made up 52% [5][6] - The total revenue for the real money gambling market is expected to grow from $150 million in 2022 to $222 million in 2024 [6] Group 3: Industry Players - Dream11, a leading fantasy sports platform, previously attracted a $100 million investment from Tencent in 2018 [7][9] - Gameskraft is the largest player in the card game segment, focusing on the Rupee card game, with annual revenue exceeding $400 million in 2024 [9] - The opening of Meta's advertising for real money gambling may lead to significant changes in the market landscape and the emergence of new key players [9]

Key Points - 30-year US Treasury yield surpasses 5%, leading to a decline in the US dollar [2] - Atlanta Federal Reserve President warns of inflation risks, indicating a preference for one rate cut this year [2] Company News - TXNM Energy announces that Blackstone Group's infrastructure fund has agreed to acquire the utility company for $61.25 per share, with a total enterprise value of $11.5 billion including net debt [2] - Nvidia is reportedly in deep negotiations to invest in quantum computing startup PsiQuantum [2] - TSMC plans to increase prices for advanced processes, with a 10% price hike for 2nm wafers [2] - Qualcomm announces plans to develop custom data center CPUs designed to connect with Nvidia's AI chips, marking its re-entry into the server processor market [2] - FDA approves Novavax's COVID-19 vaccine for older adults and individuals aged 12 and above [2] - Sohu reports Q1 total revenue of $136 million, with net loss narrowing by over 20% year-on-year, exceeding previous best expectations for marketing services revenue and group net loss, while online gaming revenue also surpassed expectations [2] - Niu Technologies reports Q1 revenue of 682 million RMB, a year-on-year increase of 35.1%, with a net loss of 38.8 million RMB and a 57.4% increase in electric scooter sales [2]

Summary of Key Points Core Viewpoint - NetEase reported strong financial results for the first quarter, exceeding market expectations in several key metrics, which led to a pre-market stock price increase of over 3% [4]. Financial Performance - Adjusted earnings per ADS for continuing operations were 17.51 RMB, surpassing the estimate of 13.73 RMB [1]. - Online gaming services generated net revenue of 240.5 billion RMB, exceeding the forecast of 230.8 billion RMB [1]. - Gross profit for the quarter was 184.8 billion RMB, higher than the expected 175.7 billion RMB [3]. - The gross profit from online gaming services was 165.5 billion RMB, compared to the estimated 156.1 billion RMB [3]. Other Business Segments - Revenue from innovation and other businesses was reported at 16.2 billion RMB, falling short of the anticipated 18.7 billion RMB [2].