Chinese tech giant Tencent Holdings (OTC:TCEHY) (HK:0700) may finally have found a bestselling gaming title for 2024 in the form of Dungeon & Fighter (DnF) Mobile. The game launches with a bang in China, raking in around $270 million on iOS within a month of its launch.
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Tencent’s DnF Mobile Is Off to a Flying Start
Tencent launched DnF Mobile in China late last month. The game has already notched pole position in downloads and revenue in China, according to Bloomberg, making DnF Mobile the largest debut for Tencent this year.
Moreover, the game’s first-month revenue is twice that of Honor of Kings, the long-standing popular gaming title in China. DnF Mobile is an adaptation of the original DnF computer game, developed by Korea’s Nexon. The game was released in Korea by Nexon in 2022 and has been a successful title.
Its launch in China, however, saw delays due to regulatory restrictions on the gaming industry. In February, Chinese regulators finally approved DnF, after nearly four years. Subsequently, Tencent rushed the game’s release in China due to promising feedback from testing. Importantly, DnF Mobile’s success could be a major boost for Tencent’s domestic gaming division. Last month, the company had to suspend DnF Mobile within an hour of its launch as its servers got overwhelmed.
Is Tencent a Buy, Sell, or Hold?
Impressively, Tencent’s share price has rallied by nearly 40% over the past six months despite a broader slump in China’s financial markets. At present, Barclays’ Jiong Shao, the sole analyst tracking Tencent, has a Buy rating on the stock. Shao’s $59 price target implies a further 21.1% potential upside in Tencent’s share price.
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