(Original title: Gaming stocks collectively strengthen)
On January 18, the game sector strengthened collectively. As of the close, Giant Network rose more than 6%, Dinglong Culture rose 5.92%, Tom Cat, Sanqi Interactive Entertainment, Perfect World, Zhongqingbao, etc. followed suit. Hong Kong stock Xindong Company rose by more than 9%, Zulong Entertainment rose by 6.5%, Feiyu Technology, NetEase-S, Tencent Holdings, and Youlai Interactive all achieved gains.
On the news, the National Press and Publication Administration announced a batch of domestic online game approval information in January. This is the first batch of version numbers in 2023. A total of 88 games have passed the review.
In the approval list of the version number this time, major game leaders including Tencent, Netease, Mihayou, Sanqi Interactive Entertainment, and Station B are all listed. Tencent’s “Awakening of Dawn: Vitality”, “Yuanmeng Star” and “White Night Aurora”, NetEase’s “Naishuihan” (mobile version), “Extraordinary Pioneer”, MiHoYo’s new flagship game “Honkai: Star Railway” , Sanqi Interactive Entertainment‘s “Fuyao Yimeng”, Perfect World‘s “Dragon Babu 2: Flying Dragon Fighting the Sky” and “Aita Era” released overseas by Station B have passed the review this time. Compared with the first batch of 45 version numbers issued when the version number was restarted in April 2022, the number of version numbers issued this time has almost doubled.
On the evening of the 17th, Perfect World, a leading company in the game sector, released its 2022 annual performance forecast. It is estimated that the net profit attributable to the parent company will be 1.36 billion to 1.44 billion yuan, a year-on-year increase of 268.41% to 290.08%. In 2022, the game business is expected to have a net profit of 1.58 billion to 1.64 billion yuan, a year-on-year increase of 119.35% to 127.68%.
Recently, the third-party research organization Gamma Data disclosed the data of China’s game industry in 2022: the actual sales revenue of the overall game market was 265.884 billion yuan, a year-on-year decrease of 30.629 billion yuan, or 10.33%; million people, a year-on-year decrease of 0.33%.
CITIC Securities stated that the stable issuance of game version numbers will bring a powerful catalyst to the future performance growth of game companies. The policy environment is stable, and at the same time, under the background of the main line driving performance growth such as game consumption restoration, vast space for going overseas, and the combination of virtual and real digital bases, the game industry will gradually usher in opportunities for sector restoration in the future.
CITIC Construction Investment believes that both the release rhythm of the version number and the approval of key products have recovered well. With the official launch of subsequent key products, the industry’s prosperity will further rise. During the Spring Festival holiday, with the increase in user time, superimposed on the special versions and activities of major games, the monthly performance of the mobile game market is expected to pick up marginally; with the launch of key products and the realization of sales and performance, there is room for improvement in the earnings per share and valuation of game companies.
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