Jiangyin International: Tencent's mobile game revenue in September stabilized year-on-year, optimistic about NetEase-S's strong growth in PC games

According to the Zhitong Finance APP, Jiangyin International released a research report stating that Tencent Holdings (00700/Buy, current price corresponds to 21.0 times the 2025 price-to-earnings ratio) saw its mobile game revenue stabilize year-on-year in September. The strong performance of "Delta Action" in the domestic market and "Clash Royale" (international version) offset the impact of a high base, while other evergreen games remained robust. The subsequent new game reserves are abundant and are expected to contribute incremental revenue and support steady performance growth. It is anticipated that AI applications will continue to promote efficiency optimization and drive profit release, with long-term valuation enhancement potential. NetEase (NTES.US/09999/Buy, current price corresponds to 17.5 times the 2025 price-to-earnings ratio) maintained positive year-on-year growth in mobile game revenue and is optimistic about the continued strong growth of PC games, with limited downside space in valuation.

Key Points from Jiangyin International:

Tencent

New games mitigated the impact of the high base on domestic mobile game revenue, with "Delta Action" in the domestic market and "Clash Royale" (international version) maintaining strong performance. Domestic revenue decreased by a net of 2.7 billion yuan/8% year-on-year, mainly due to the high base of "MDnF," partially offset by the incremental revenue from new games "Valorant: Source Action" and "Delta Action." "Delta Action" set a new record for revenue in September, reaching 1.5 billion yuan, driven by sustained user growth (over 30 million daily active users in the domestic market). "Valorant: Source Action" generated 400 million yuan in revenue in September, maintaining a ranking of 8-12 on the iOS game bestseller list in early October. Overseas revenue increased by 670 million yuan (RMB, the same below)/9% year-on-year, mainly due to the incremental revenue from "Clash Royale" offsetting the high base impact of "Brawl Stars." "Clash Royale" continued its revenue growth trend, with revenue exceeding 750 million yuan in September, up 360%/7% year-on-year/month-on-month.

NetEase

New overseas games released incremental revenue. Domestic revenue slightly increased by 70 million yuan/1% year-on-year, with new games like "Yanyun Sixteen Sounds" and "Party of Eggs" contributing incremental revenue that offset the high base impact of "Nirvana in Fire" and others. Overseas revenue increased by 160 million yuan/18% year-on-year, benefiting from new games like "Destiny: Rising" (revenue exceeding 100 million yuan in September) and "Marvel's Midnight Suns."

Hot Topics

1. Tencent is exploring interactive film and game integration, with the release of "The World of Prosperity: Queen's Game" on September 9, achieving cumulative sales of over 1 million. 2) In September 2025, 145 domestic game licenses and 11 import licenses will be issued, with a recommendation to pay attention to Tencent's open-world RPG cross-platform game "Return to the Ring" and miHoYo's Honkai series new game "Honkai: Fate Spirit" testing progress and launch plans