Morgan Stanley: Tencet expects Valorant to generate $7.3-8.6 billion in revenue, targeting 14% growth in Tencent's gaming income this year

Morgan Stanley released a research report stating that Valorant, a mobile game developed by Tencet (00700), is one of the most important new releases for the company this year, highly anticipated by the market. The firm expects Tencent's online gaming revenue to increase by 14% in 2025, targeting a price of HK$650 and upgrading its rating.

As of July, the number of pre-registered users has exceeded 50 million. This time, the release date is earlier than expected, easing concerns caused by the high base numbers from last year's release of "Underground Castle and Heroes". The firm estimates that Valorant will generate revenue of $7.3-8.6 billion per year. Industry data shows that Tencent's Chinese market revenue fell 6% compared to the previous quarter, but classic games performed strongly, with King of Glory increasing by 13%, Peace Elite increasing by 5%, and Triangle Action's latest quarterly income reaching RMB 1 billion.