Report Date: 2 October 2024
Broker: MIB Securities (Hong Kong) Ltd

Game License Approvals and Market Position

On 27 September 2024, China’s National Press and Publication Administration (NPPA) approved 109 domestic online games, marking the tenth consecutive month with over 100 titles approved. Tencent (700 HK) was one of the key beneficiaries, with several of its games receiving licenses. The continued uptick in game approvals highlights a significant recovery in China’s online gaming market, which has been driven by popular titles like Black Myth: Wukong, a massive success among both domestic and international gamers.

Market Share Gains

According to data from Sensor Tower, Tencent has been a consistent market share gainer since April 2024. This reflects the company’s solid performance in the gaming sector and its ability to capitalize on the improving regulatory environment in China. The approval of more domestic titles and the recovery of the gaming market have reinforced Tencent’s leadership position in the industry.

Investment Ratings and Target Price

Tencent (700 HK) has a target price of HKD479.47, and 98.6% of analysts have rated it as a “Buy.” Though MIB Securities does not provide its own rating, the consensus reflects strong confidence in Tencent’s growth prospects as it continues to dominate the online gaming sector.