CICC Expects TENCENT 2023E Game Rev. to Grow 8% to RMB222.1B, Rating Outperform
$TENCENT(00700.HK$ 's gaming business has been under the spotlight recently, CICC highlighted in its report. Among the approved domestic game titles in February, two titles were tied to TENCENT. Apart from this, the fourth quarter financial report released by Nexon, the South Korean game developer of "DNF", also captured attention.
According to the financial report, the growth of Nexon's performance last year was primarily due to the upswing of revenue in the Chinese market, given the strong performance of "DNF".
The broker believed that it is possible to have cautiously optimistic expectations for the launch of the domestic version of "DNF Mobile". If it goes online, TENCENT's game business may further exceed expectations in the short to medium term.
CICC estimated that TENCENT's game revenue this year may gain 8% YoY to RMB222.1 billion, of which domestic game revenue may lift 9% YoY to RMB173.4 billion. The rating was Outperform with $475 TP.
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