HSBC Expects Tencent's Game Revenue Growth to Accelerate in 2H24; Prefers NetEase (NTES-S)

HSBC Global Research forecasts that Tencent's domestic game revenue will grow faster in 3Q24 and 4Q24, driven by new titles like DNF: Origins and Valorant, along with sustained engagement in popular existing games.

In contrast, $NTES-S (09999.HK)$ ’s revenue growth may slow year-over-year in 3Q24 due to tough comparisons with Justice and Eggy Party but should recover by 4Q24, aided by new games like Naraka: Bladepoint, World of Warcraft, and Once Human.

HSBC remains optimistic about $TENCENT (00700.HK)$ and NetEase, citing resilience from new games and overseas growth, rating both stocks "Buy," while giving $BILIBILI-W (09626.HK)$ a "Hold" rating.