Peace Elite’s Going Overseas Drives Tencent’s Game Growth, 52 Brokers Keep Buying

Peace Elite’s Going Overseas Drives Tencent’s Game Growth, 52 Brokers Keep Buying
On May 13, Tencent released the first quarter of 2020 performance report, and its revenue for Q1 in 2020 was 1080.6.5 billion, an annual increase of 26%; net profit (non-IFRS) 270.7.9 billion, an increase of 29% a year, exceeding market expectations.Including the value-added services business within the gaming business, revenue in the first quarter increased by 27% to 624 per year.2.9 billion yuan, of which online game revenue increased by 31% to 372.9.8 billion US dollars, the financial report said that the expected growth mainly reflects the increase in the income contribution of domestic smartphone games (including “Peace Elite” and “Glory of the King”) and overseas games.Anxin Securities maintains a more optimistic outlook for Tencent’s growth in 2020, mainly based on optimistic about the contribution of overseas game revenue, the rapid growth of the fintech business services sector, and the healthy growth of social advertising driven by volume. The Q1 epidemic is expected to have a short-term impact on the company’s businessThe fundamental impact, especially commercial payment and media advertising, will be replaced by the unexpected performance of mobile games and social ads in the category of effects. Maintain a buy rating.Soochow Securities pointed out that Tencent’s games are gaining popularity overseas, and the game business is ushering in the era. Tencent is accelerating the integration of overseas game layouts, and has world-class game development studios such as Riot Games, etc.According to the data of Sensor Tower, in January this year, “PUBG Mobile” overseas income was nearly 83 million US dollars, an increase of 35 compared with the previous month.6%, an annual increase of 79.8%.As of March 15, 2020, “PUBG Mobile” had more than 5 overseas downloads.1.5 billion times, the first Chinese mobile game to successfully open the global market.The download volume of the agent game “Call of Duty: Mobile” is high. Until March 15, 2020, the total overseas downloads reached 2.12 billion.In addition, Tencent is also actively deploying cloud games.On December 17, 2019, Tencent’s START cloud gaming official blog went live.The Air Force, Tencent and the kernel teamed up to launch the cloud gaming platform “Tencent Play”.The growth rate of Tencent’s games is to turn “danger” into “opportunity” during the epidemic.Statistics show that other game companies also achieved good results during the epidemic. For example, Nintendo ‘s profit soared by 200% in the first quarter, Perfect World ‘s game revenue grew by 48%, and online game players exceeded 24 million.The scale of China’s mobile game market reached 550 billion, an increase of 49%.Gamma data shows that in the fourth quarter of 2019, China’s game market sales revenue increased by 6 quarter-on-quarter.54%, the sales revenue of the mobile game market decreased by 1 month-on-month.57%.However, the Spring Festival in the first quarter of 2020 increased the factors of special public health events, and the mobile game industry showed explosive growth with a growth rate of 49.5%, about February of the 2019 Chinese New Year, expanded to 36.9%, the potential to eliminate the disadvantage of the number of days in February is still 23.6%.Currently 52 analysts give Tencent a “buy” rating, 4 analysts suggest holders, the latest target price of 449 instead.Among them, Goldman Sachs issued a report on May 8 to give 494 reconstruction target price.Sauna, Ye Wang Bai Jinlei editor Xu Chao proofreading Li Shihui