Data analysis company Bain & Company reported that by 2027, the compound annual growth rate of global game revenue will reach 9%, which will increase the revenue of the game from $199 billion in 2022 to $307 billion in 2027.

Qimai data has released the June 2024 list of top downloaded and revenue generating games, which includes the Top 30 games in both categories.

Tencent (00700) dominates the top three spots in the game download chart, with "Honor of Kings", "Dungeon & Fighter: Origins" and "Peace Elite". According to Wanhua Securities research reports, standardized issuance of game licenses and continuous efforts from top developers.

The continuous and standardized issuance of game licenses has brought strong confidence to the market, which is bullish for the overall sector's valuation repair. Top developers such as Tencent and Netease continue to invest in new games, maintain a large number of newly launched games, create innovative gaming types, and boost the continued recovery of the gaming industry.

It is suggested to focus on top companies with abundant reserves of licenses, strong research and development capabilities, and high-quality products.

Internet game-related companies:

NetEase-S (09999): The gaming business started to pick up in the second half of the year and is expected to increase revenue by 10% year-on-year. This is mainly due to the contribution of new games such as the "Endless Haven" mobile game, the gradual elimination of the impact of some PC games adjustment, and the return of Blizzard games. NetEase announced that the "Endless Haven" mobile game will be officially released on July 25th. The "Endless Haven" IP has been hot since 2019, with more than 40 million global IP players and more than 30 million mobile game reservations. While retaining the characteristics of sword collision and light skill duels in the end game, the mobile game has also made some lightweight gameplay and innovations in its operations.

Tencent: Zhong Yin International expects Tencent's game revenue to increase by 10% year-on-year in the second half of the year, mainly due to the increased revenue contribution of the <>(DNF mobile game), and the continuous improvement of overseas game operations and commercialization. Relying on leading gaming development and overseas expansion capabilities, Tencent is expected to maintain its leading position.

Bilibili-W: The mobile game business has recovered. After the pre-download of <> was launched, it ranked in the top three of the iOS free chart for three consecutive days, and ranked in the top five of the iOS best-selling chart on the first day of launch. It is expected to drive Bilibili's game revenue growth better than expected in the second half of the year.

XD INC: The self-developed idle gameplay <> has kept its position in the top ten of the iOS best-selling chart since it was launched on Hong Kong, Macao, Taiwan and Chinese servers. It is expected to be a major incremental contribution to a performance in 2024. With a stable issue of domestic licenses and many blockbuster games in the summer, TapTap platform activity and revenue are expected to maintain rapid growth.

China Ruyi - On May 7, China Ruyi announced the acquisition of 100% equity of Beijing Youai Huyu Technology Co., Ltd. under ByteDance. The transaction price was RMB 259 million. At present, the core asset of Youai Huyu is <>.

Pop Mart (09992): Its first self-developed mobile game, "Dream Home", was officially launched on June 27th.