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Event description: on September 3, League of Legends held a press conference on the 10th anniversary, announcing that "League of Legends" mobile games will be tested without deleting files on September 15.

Guoxin's point of view: "League of Legends" mobile games deeply restore the PC game experience, which is expected to explode with huge IP influence and excellent product quality. Reviewing Tencent's historical stock price performance, Xinyou's excellent performance will directly drive the stock price up. We estimate that as of September 7, 2021, Tencent's share price corresponds to 30x under the 2021 Non IFRS, which is 13% lower than the valuation center in the past five years. Prior to this, mainly affected by anti-monopoly sentiment, the stock price retreated greatly, which was 33% from the highest point. The launch of "League of Legends" mobile games is expected to form a positive catalysis in terms of mood and performance. We are firmly optimistic about the long-term development of Tencent. Both the game going out to sea and the video number are large-level driving forces. We maintain our previous profit forecast. We expect the net profit under Non IFRS from 2021 to 2023 to be 1,344 won 1594 / 193.1 billion, respectively, maintaining the target price of HK $700-750. compared with the current valuation space of 36% Fok 45%, the current price is highly attractive and we will continue to maintain the "Buy" rating.

Investment advice: the launch of blockbuster products is expected to catalyze the stock price rise, the current valuation is attractive, continue to maintain the "buy" rating "League of Legends" mobile games to deeply restore the PC end game experience, is expected to explode with huge IP influence and excellent product quality. Reviewing Tencent's historical stock price performance, Xinyou's excellent performance will directly drive the stock price up. We estimate that as of September 7, 2021, Tencent's share price corresponds to 30x under the 2021 Non IFRS, which is 13% lower than the valuation center in the past five years. Prior to this, mainly affected by antitrust sentiment, the stock price showed a large pullback, with a pullback range of 33% from its peak.

The launch of "League of Legends" mobile games is expected to form a positive catalysis in terms of mood and performance. We are firmly optimistic about the long-term development of Tencent. Both the game going out to sea and the video number are large-level driving forces. We maintain our previous profit forecast. We expect the net profit under the Non IFRS from 2021 to 2023 to be 1344x1594x193.1billion respectively, maintaining the target price of HK $700,750,700-750. compared with the current valuation space of 36% Rou 45%, the current price is highly attractive and we will continue to maintain the "Buy" rating.

Risk hint

Policy risk; risk of delayed launch of new products; risk of underperforming new games; systemic risk caused by uncertainty of the global epidemic, etc.