China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

China TMT Update(May 24) - 700.HK/NTES/BILI/ZLAB/MNSO: Tencent, NetEase, Bilibili Receive Game Code

[Tencent (700 HK, BUY, TP HK$433) Earnings Review]: Ads Growth Will Accelerate, Maintain BUY

Tencent Announced Game Pipeline in Annual Conference "Spark 2023", and Our Estimations

China/Asia TMT

Shawn Yang

Thematic (Sector/Industry)

<ul>
<li>We recently visited some start-up game companies in China and concluded that the Chinese gaming market has entered a matured period of competition for existing users;</li>
<li>Tencent's games remain relatively stable, but information about new RMB 10bn level blockbusters is still unknown. New shooting games continue to appear, putting pressure on existing survival shooting games;</li>
<li>We (1) maintain our BUY for Tencent and Unity, (2) maintain SELL for Sea, and (3) downgrade Krafton to SELL to reflect the new competition that shooting games will face.</li>
</ul>


We recently visited some start-up game companies in China and concluded that the Chinese gaming market has entered a matured period of competition for existing users;
Tencent's games remain relatively stable, but information about new RMB 10bn level blockbusters is still unknown. New shooting games continue to appear, putting pressure on existing survival shooting games;
We (1) maintain our BUY for Tencent and Unity, (2) maintain SELL for Sea, and (3) downgrade Krafton to SELL to reflect the new competition that shooting games will face.


Tencent/SEA/Unity/Krafton: More Shooting Games Are Emerging, a Summary of Our Recent Channel Checks