Investment Rating - The industry investment rating is maintained as "Positive" [5] Core Insights - The total supply of game licenses continues to increase, with a significant rise in new products expected in 2026. The number of game licenses issued in 2025 reached 1,771, a 25.07% increase from 1,416 in 2024, marking a new high since the regulations were established in 2018 [8] - The approval process for imported game licenses has been optimized, with the average number of licenses issued per batch increasing from approximately 80 in 2023 to 160 in the second half of 2025, indicating a supportive policy environment [8] - The number of cross-platform headlining games has significantly increased, with 1,729 mobile games, 159 client games, 19 web games, and 8 console games licensed in 2025. The growth of cross-platform products is expected to continue, driven by high-end engine usage [8] - The gaming market is expected to see intense competition in genres such as simulation, RPG, and open-world games in 2026, with a notable presence of low ARPU (Average Revenue Per User) games that may exhibit stronger resilience against deflationary pressures [8] Summary by Sections Investment Suggestions and Targets - The report suggests focusing on companies with a reserve of cross-platform headlining projects and those with a strong portfolio of enduring games that have high daily active users (DAU) but low ARPU. Recommended stocks include Tencent Holdings (00700, Buy), NetEase (09999, Buy), and others [3] Industry Dynamics - The gaming industry is experiencing a robust growth trajectory, with a notable increase in the number of game licenses and an improved business environment for game developers due to policy support [8]

Core Insights - The article highlights the transformation of esports events in Shenzhen's Nanshan district, showcasing a shift from merely watching competitions to immersive experiences that engage participants in various activities and consumption [1][2]. Group 1: Event Structure and Engagement - The esports carnival features a 17-day "Honor of Kings" event with a "1+2+3+N" multi-dimensional framework, integrating esports elements into public spaces [2]. - The main venue, Shenzhen Talent Park, has been transformed into a "No Boundaries King" themed town, blending virtual and real experiences with various attractions [4]. - Multiple sub-venues offer unique experiences, such as VR gaming and light art, while themed activities like parades and concerts enhance engagement [4]. Group 2: Transportation and Accessibility - Nanshan has established seamless transportation links, including themed buses and exclusive helicopter tours, to facilitate access to the events [4]. - The integration of public transport with event themes aims to convert online enthusiasm into physical attendance [4]. Group 3: Economic Impact - The esports carnival has generated significant economic activity beyond ticket sales, with a reported 58,000 visitors in a single day during the first weekend [6]. - A collaborative initiative with the local business bureau provided 5 million yuan in consumer subsidies, stimulating spending across various sectors [7]. - The "event-driven tourism" model has proven effective, with over 10,000 tickets for the "Naraka: Bladepoint" finals sold within five minutes, attracting a majority of out-of-province attendees [7]. Group 4: Technological Integration - The event showcased advanced technology, including humanoid robots and drone light shows, enhancing the overall appeal and experience [11]. - This integration of technology reflects Shenzhen's strengths in industries like AI and drone technology, contributing to the event's attractiveness [11]. Group 5: Industry Foundation and Policy Support - Nanshan's esports industry has a robust foundation, with annual revenues exceeding 100 billion yuan, accounting for over 80% of Shenzhen's total [12]. - The region hosts major gaming companies and esports clubs, creating a comprehensive ecosystem that supports various facets of the industry [12]. - Local policies provide substantial financial support for hosting major esports events, fostering a conducive environment for growth [12].

2025年是中国游戏市场和中国游戏"出海"规模爆发的一年，被业内视为"游戏大年"。越来越多优秀游戏 涌现，得益于近两年版号数量的增长。据《证券日报》记者梳理，2025年，我国累计发放国产网络游戏 版号1676款，相比2024年的1306款同比增长28.33%。 "当前来看，客户端和主机游戏在中国开始进入高速发展期，之后的市场规模大概率会越来越大。最重 要的原因是，2025年游戏厂商与渠道商收入分成的博弈白热化。"上海夏至良时咨询管理有限公司高级 研究员杨怀玉在接受《证券日报》记者采访时表示。 渠道分成博弈白热化 例如，腾讯旗下的《王者荣耀世界》，在今年5月份的版号审批中变更信息，在原移动端版本基础上， 新增了客户端版本；完美世界旗下的《异环》，在5月份版号审批中，更是同时申报了移动端、客户端 和主机(PS5)三个类别；创梦天地的《幻幻灵之战》，在12月份的审批中，也同时申请了移动端、客户 端和主机(PS5)。 不少多端游戏也驱动了上市公司业绩的增长。腾讯2025年第三季度财报显示，《三角洲行动》作为该公 司首款于全球多地发行的国产自研三端互通射击游戏，在本土市场已经进入行业流水前三，全球发行有 望成为腾讯海外 ...

Group 1 - The year 2025 is anticipated to be a significant year for China's gaming market and the "going global" trend, with a total of 1,676 domestic online game licenses issued, representing a 28.33% increase from 1,306 in 2024 [1] - The number of multi-platform game licenses reached 103 in 2025, up 9.57% from 94 in 2024, indicating a shift towards more diverse gaming platforms beyond mobile [1] - Major companies are increasingly applying for licenses for client and console versions alongside mobile versions, reflecting a strategic shift in the gaming industry [2] Group 2 - Tencent's "Delta Action" and NetEase's "Yanyun Sixteen Sounds" have achieved significant success, with the latter surpassing 15 million global players within a month of its overseas launch, setting a new record for Chinese games going global [2] - The client game market is experiencing a strong recovery, with actual sales revenue reaching 78.16 billion yuan in 2025, a 14.97% year-on-year increase, while the console game market saw an 86.33% increase to 8.362 billion yuan [3] - The rise of multi-platform games is attributed to their broader player base and increased confidence in producing AAA games, which require higher technical standards [3] Group 3 - The revenue-sharing model with distribution channels has become increasingly contentious, with Android channels demanding up to 50% and Apple around 30%, squeezing profit margins for game developers [4] - High distribution fees have led several top companies to withdraw popular games from Android channels, marking a significant shift in the industry [4] - Adjustments in revenue-sharing agreements, such as Apple's reduction to 15% and some Android channels negotiating down to 10-20%, indicate a changing landscape for game distribution [4][5] Group 4 - The increase in client games is seen as a strategic response by game developers to combat high mobile game distribution fees, suggesting a potential shift away from the current "channel dominance" model [6]

国泰海通发布研报称，传媒行业正处于AI应用加速发展和文娱产业周期向上的关键节点，2025年指数 表现较好，2026年在产品和政策的共振下有望延续强势。从AI应用方面看，2025年8月《国务院关于深 入实施"人工智能+"行动的意见》颁布，标志着AI已上升至国家战略层面，"人工智能+"有望延续"互联 网+"的热潮，造就新生态、新场景、新商业。再从文娱产业来看，以"哪吒"、"黑神话：悟空"等为代表 的本土IP不仅在国内深受消费者喜爱，更是在全球范围内掀起热潮。 国泰海通主要观点如下： 风险提示：市场竞争风险，行业及监管政策风险，技术发展不及预期，产品表现不及预期。 AI应用高速发展与文娱产业周期向上的黄金时期。 从AI应用方面看，2025年8月《国务院关于深入实施"人工智能+"行动的意见》颁布，标志着AI已上升 至国家战略层面，"人工智能+"有望延续"互联网+"的热潮，造就新生态、新场景、新商业。再从文娱产 业来看，以"哪吒"、"黑神话：悟空"等为代表的本土IP不仅在国内深受消费者喜爱，更是在全球范围内 掀起热潮。而例如游戏、影视等互联网时期诞生的娱乐内容形式亦展现出极强的生命力，《超自然行动 组》、《无尽冬日》、 ...

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [5] Core Views - The report anticipates sustained growth in gaming and advertising revenues, driven by key titles such as "Honor of Kings World" and "Little People’s Country" contributing to revenue growth in 2026 [3][9] - The estimated IFRS net profit for 2025-2027 is projected at 226 billion, 261 billion, and 297 billion RMB respectively, reflecting adjustments based on updated assumptions for gaming, advertising, and payment services [3][9] - A sum-of-the-parts (SOTP) valuation method is used, resulting in a target price of 664.22 HKD [3][5] Financial Performance Summary - For 2023, the company reported revenue of 609,015 million RMB, with a year-on-year growth of 9.82% [4] - The operating profit for 2023 was 152,784 million RMB, showing a significant year-on-year increase of 52.76% [4] - The net profit attributable to shareholders for 2023 was 115,216 million RMB, reflecting a decline of 38.79% year-on-year [4] - The earnings per share (EPS) for 2023 is reported at 12.60 RMB [4] - The gross margin is expected to improve from 48.13% in 2023 to 57.90% by 2027 [4] Revenue Breakdown - The report highlights that the revenue from value-added services reached 959 billion RMB in Q3 2025, with a year-on-year growth of 16% [9] - Gaming revenue for Q3 2025 was 636 billion RMB, marking a 23% increase year-on-year [9] - Marketing services revenue for Q3 2025 was 362 billion RMB, exceeding Bloomberg's expectations by 2% [9] Future Projections - The report projects a revenue increase to 754,344 million RMB in 2025, with a year-on-year growth rate of 14.25% [4] - The operating profit is expected to reach 247,023 million RMB in 2025, with a growth rate of 23.45% [4] - The net profit attributable to shareholders is forecasted to be 225,981 million RMB in 2025, reflecting a growth of 16.44% [4]

Core Insights - Tencent's Q3 2025 performance shows strong growth in both revenue and profit, driven by overseas gaming and marketing services [1] - The company continues to leverage AI technology to enhance advertising and e-commerce efficiency, creating new opportunities [2] - The gaming segment exhibits robust performance with a rich pipeline of new and existing products, indicating strong future growth potential [3] Financial Performance - In Q3 2025, Tencent achieved revenue of 192.9 billion yuan (up 15% year-on-year, up 5% quarter-on-quarter) and net profit attributable to shareholders of 63.1 billion yuan (up 19% year-on-year, up 13% quarter-on-quarter) [1] - Non-IFRS net profit was 70.6 billion yuan (up 18% year-on-year, up 12% quarter-on-quarter) [1] - The gross margin increased by 3 percentage points year-on-year to 56%, driven by high-margin self-developed games and services [1] Business Segments - Value-added services revenue reached 95.9 billion yuan (up 16% year-on-year), with domestic gaming revenue of 42.8 billion yuan (up 15% year-on-year) and overseas gaming revenue of 20.8 billion yuan (up 43% year-on-year) [1] - Marketing services revenue was 36.2 billion yuan (up 21% year-on-year), benefiting from increased user engagement and AI-driven improvements in advertising efficiency [1] - Financial technology services revenue was 58.2 billion yuan (up 10% year-on-year), driven by growth in commercial payments and AI-related services [1] AI Technology Development - The company is continuously upgrading its AI capabilities, with its mixed Yuan image generation model ranking first globally as of November 12 [2] - New AI-driven advertising products enhance marketing ROI and support small and medium advertisers [2] - AI integration in e-commerce is boosting transaction volumes on WeChat, indicating a shift towards a more intelligent ecosystem [2] Gaming Performance - New games like "Delta Force" and "Valorant" are performing well, with "Valorant" achieving over 50 million monthly active users in China [3] - Established games like "Honor of Kings" continue to show strong engagement, with daily active users surpassing 139 million [3] - Upcoming major titles and expansions are expected to further drive business growth [3]

Core Insights - The 10th anniversary celebration of "Honor of Kings" took place in Chengdu, marking its significant impact on the global mobile gaming landscape [1][4] - The event featured numerous celebrities and performances, emphasizing the game's cultural significance and community engagement [1][3] - "Honor of Kings" aims to expand beyond gaming into a comprehensive IP universe, including animation, music, and film [4][5] Industry Trends - The mobile gaming industry has shifted from "light casual" games to more immersive experiences, with "Honor of Kings" leading this transformation since its launch in 2015 [2][3] - The game has successfully integrated social features, achieving a record of 7.5 million daily active users (DAU) shortly after its release [3] - The game's DAU reached 139 million in 2025, while global monthly active users (MAU) surpassed 260 million, setting a new record for mobile games [6][7] Brand Collaborations - "Honor of Kings" has partnered with over 60 brands across various sectors, including fashion and beverages, to create co-branded products, enhancing its cultural relevance [7][8] - The collaboration with Estée Lauder targets a predominantly female audience, while partnerships with brands like iQOO focus on male gamers interested in esports [8] Cultural Impact - The game has become a significant cultural phenomenon in China, with its influence extending into tourism and local economies, as seen in the "Follow the Kings to Explore Chengdu" initiative [8][9] - "Honor of Kings" has launched over 50 skins related to traditional culture, appealing to younger audiences' desire for deeper cultural engagement [10][11] - The game is increasingly recognized as a vital part of China's cultural strategy, with educational initiatives and government support for the gaming industry [11]

Core Insights - Tencent's mobile game "Honor of Kings" has achieved a record-breaking 139 million daily active users (DAU) in China and over 260 million monthly active users (MAU) globally by 2025, surpassing its previous forecast of 100 million DAU for 2024 [1][3] - The game has also set a new global record for monthly active users among gaming products [3] - Upcoming IP derivative games include "Honor of Kings: Chess of the Kings" and "Honor of Kings: World," with the latter expected to launch in Spring 2026 and featuring advanced technologies like ray tracing and NVIDIA's DLSS3 [3][4] - A new animated series focusing on the character "Li Xin" has been announced, with additional series in development, indicating a strong expansion of the game's IP into multimedia [4][5] User and Revenue Growth - Since its launch in October 2015, "Honor of Kings" has seen rapid user growth, reaching 200 million registered users within a year [7] - The Chinese gaming market has grown significantly, with user numbers increasing from 534 million in 2015 to 664 million in 2022, and market revenue rising from 140.7 billion RMB to 265.88 billion RMB in the same period [7] - The gaming industry in China is projected to exceed 325.78 billion RMB in 2024, with a year-on-year growth of 7.53%, accounting for approximately 26.7% of the global gaming market [7] - In 2023, "Honor of Kings" generated significant revenue, with Tencent's domestic gaming revenue reaching 40.4 billion RMB, a 17% increase year-on-year, and the game being the only mobile game to surpass $1 billion in revenue in the first half of the year [8] - "Honor of Kings" has maintained its position at the top of the Chinese App Store revenue rankings for 14 consecutive months and achieved the second-highest single-month revenue in gaming history [8]

Core Insights - The core point of the articles is the celebration of the 10th anniversary of "Honor of Kings," highlighting its significant user engagement and the successful events surrounding the anniversary celebration [2][4][6]. User Engagement - The game has achieved a domestic daily active user count (DAU) of 139 million and a global monthly active user count (MAU) exceeding 260 million [2][4]. - The anniversary celebration included various interactive activities, showcasing the game's strong community engagement and the enthusiasm of esports fans [6]. Financial Performance - Tencent's Q2 2025 financial report noted that "Honor of Kings" and other evergreen games contributed to a 17% year-on-year increase in domestic game revenue, reaching 40.4 billion yuan [6]. - The game has maintained its position at the top of the Chinese App Store's mobile game revenue chart for 14 consecutive months, and it achieved the second-highest single-month revenue in its history earlier this year [6]. New Game Releases - Two new games based on the "Honor of Kings" IP, "Honor of Kings World" and "Honor of Kings Chess," were showcased at the anniversary event [7]. - "Honor of Kings World" is an open-world game set to be released in spring next year, allowing players to choose between single-player and multiplayer modes while integrating original characters [8]. - "Honor of Kings Chess" is a strategy-based auto-chess mobile game that emphasizes character development and features visually appealing 3D models and animations [8].