China Merchants Bank International released a report indicating that in the second half of the year, multiple highly anticipated gaming titles will be launched, which will drive the gaming industry to accelerate again, and Tencent (00700.HK) is the first choice in the gaming industry. Tencent's gaming revenue is expected to increase by 10% annually in the second half of the year, mainly due to the increased revenue contribution of Dungeon Fighter: Origin (DNF mobile game) and the continuous improvement of overseas game operations and commercialization. Leveraging its leading gaming development and operation capabilities and overseas expansion capabilities, Tencent is expected to maintain its leading position.

The bank also bullish on Netease's (09999.HK) gaming business recovering in the second half of the year, with estimated annual revenue growth of 10%, mainly due to the contributions of new games such as Endless Hegemony mobile game, the gradual disappearance of the impact of some PC game adjustments, and the return of Blizzard games. In the short term, it is optimistic that the new games will drive Bilibili's (09626.HK) mobile gaming business recovery. After the pre-download of "Three Kingdoms: Strategy for the Crown", it ranked top 3 on the iOS free list for three consecutive days and ranked top 5 on the iOS bestseller list on the first day of launch, which is expected to drive Bilibili's gaming revenue growth to be better than expected in the second half of the year.

The bank compiled the past four quarters' gaming revenue performance of three companies:

Stock │ 2Q23 │ 3Q23 │ 4Q23 │ 1Q24

Tencent │+5% │+7% │-2% │-1%

Netease │+4% │+16% │+10% │+7%

Bilibili │-15% │-33% │-12% │-13%