Glonghui, April 28 | UBS published a research report saying that the recovery of Tencent's overseas game business appears to have been overlooked by investors. Citing industry data, the Finnish mobile game company Supercell, which was acquired by Tencent in the early years, is expected to resume growth in the first quarter of this year, and revenue growth is expected to reach 82%. Since Supercell contributes about 10% of Tencent's game revenue, it is expected to directly benefit Tencent's growth. Meanwhile, overseas revenue for its blockbuster “PlayerUnknown's Battlegrounds” has been rising since the second half of last year, and is expected to grow 34% year-on-year in the first quarter. UBS expects the game business to perform well in the international market, which will support the company to record significant improvements. The bank also said that in addition to the launch of the “Dungeons and Warriors” mobile game, a potential rebound in existing game performance may also bring room for improvement. Tencent's transformation of existing games based on the WeChat ecosystem and monetization driven by future applications of artificial intelligence technology can all increase the visibility of Tencent's profit growth. UBS raised Tencent's 2024-2026 earnings forecast by 3% to 4% and raised its target price to HK$438.