CICC: TENCENT (00700) actively operates with Longhu Games and maintains an "outperform industry" rating.

CICC released a research report stating that TENCENT (00700) SPARK 2025 Tencent Games was held on April 22nd, releasing the latest updates on 46 products, including testing information on multiple new games. Overall, CICC believes that the trend of Tencent Games in 2025 is still good. Although the domestic game industry will face the challenge of high revenue base from last year in the second half of 2025, Tencent Games has strong internal capabilities in long-term games, and new games are progressing steadily. It is expected that Tencent Games' revenue for the whole year is still expected to increase by 10% year-on-year in 2025. The revenue and profit forecast for 2025/2026 remain unchanged, and the "outperform industry" rating and target price of HK$600 are maintained. In addition to new games, Tencent will continue to focus most of its efforts on its flagship long-term products, such as "Honour of Kings", "Peacekeeper Elite", "League of Legends" IP, "CrossFire" IP, "Dungeon & Warriors" IP, etc. According to SensorTower, CICC calculates that the domestic key game revenue growth rate in the first quarter of 2025 is fast for Tencent, among which "Peacekeeper Elite" has the fastest year-on-year growth rate. "Honour of Kings" and "CrossFire" also have good year-on-year growth, and "Delta Force" has fast month-on-month growth, indicating Tencent's ability to focus on the operation of long-term games.