Tencent's blockbuster IP mobile game "League of Legends Mobile Games" started the test of unlimited numbers and undeleted files on October 8, 2021. The overseas version of "League of Legends Mobile Games" was launched in October 2020 and has been downloaded more than 4630 times. Chinese Service officially launched on October 8. The number of people booked for "League of Legends Mobile Games" has exceeded 30 million, and revenue in the fourth quarter is expected to exceed 2 billion yuan.
The launch of "League of Legends Mobile Games" will improve Tencent's performance in the fourth quarter: the rectification and reform of the game industry since August this year and the promulgation of follow-up regulatory measures have aroused investors' concern about the continuous rectification and reform of the game industry, and the game sector has entered the adjustment stage. Tencent's blockbuster mobile game "League of Legends Mobile Games" was officially launched on October 8, and the market's worries about further rectification and reform of the game plate may be alleviated. "League of Legends" is one of Tencent's top IP. Since it was launched in 2009, it has continuously improved the game content and how to play it, and has maintained its active vitality for a long time. According to Sensor Tower data, as of July 2021, the overseas version of "League of Legends Mobile Games" has been downloaded 4630 times, with an expected revenue of 64.7 million US dollars, successfully proving the exuberant vitality of "League of Legends" IP.
On the basis of Tencent's rich experience in "end-to-end change of hands" operation, "League of Legends Mobile Games"
The launch of national service is expected to detonate the mobile game market again, activating a large number of potential IP users.
With reference to the income of the overseas version of "League of Legends" and the surrounding mobile games, we believe that the revenue contribution of "League of Legends Mobile Games" in the fourth quarter will exceed 2 billion yuan, becoming a new growth point of revenue at the game end.
"Open the outer chain" may bring new opportunities: according to the requirements of the "Administrative guidance meeting on blocking URL links" convened by the Ministry of Industry and Information Technology, various platforms in the industry have been unblocked according to the requirements. The lifting of the shield may lead to the further development of WeChat Pay and WeChat Mini Programs. At present, WeChat Pay and UnionPay are promoting more in-depth interconnection at the two levels of payment and service. In terms of cloud and other corporate services, with the high-tech barriers of cloud infrastructure, PaaS and SaaS, Tencent Ecology is expected to take advantage of the opportunity of "open outer chain" to expand its business scale, and WeCom will further infiltrate the retail and financial industries, thus promoting the performance of the financial technology and corporate services sector.
Investment suggestion: the launch of "League of Legends Mobile Games" and other heavyweight IP mobile games (DNF Mobile Games, Dawn Awakening, etc.) is expected to become Tencent's new performance growth point, superimposing the opportunities brought by "outside chain opening" in the financial technology and enterprise services sector. We are optimistic about Tencent's business development in the second half of the year and recommend buying.