A brief comment on the event

In the past 2018, the suspension of version approval led to the grief of the entire game industry, Battle Royale Games and going out to sea has become one of the few bright spots. But in addition, the excellent performance of super casual games in 2018 is also eye-catching. Worldwide, products such as Voodoo, Lion Studio, Ketchap, Playgendary, "Happy Water Cup", "Love Ball" and "Black Hole Battle" have been bombed and downloaded in turn. In such fierce product competition, the 2018 data released by Sensor Tower show that Outfit7's "my Tom Cat" has entered the global mobile games comprehensive download list and GooglePlay download list TOP10.

As a well-known old leisure mobile game IP, the Tom Cat series has accumulated hundreds of millions of fans around the world. After Outfit7 was acquired by Jinke Culture, it formed a synergistic effect with Hangzhou Zhe Xin, and further expanded in China and the world on the basis of the original large number of fans. In 2018, new works such as "Tom Cat Battle Camp", "Tom Cat Motorboat 2" and "Tom Cat run" have been launched one after another. with the rise of emerging markets such as Africa and South America, the influence and potential of the Tom Cat series will be further released.

Investment suggestion

After the heavy tide, the value of light mobile games and super leisure mobile games began to be further explored. Tom Cat's IP influence in casual games is second to none, the product quality is outstanding, and casual games are taken as the forerunner in emerging markets, so we believe that there is still considerable room for growth in the future.

Maintain a "buy" rating and a target price of 15 yuan based on 20 times 2019 Pamp E. The valuation is slightly higher than the average for the A-share gaming industry.

Risk factors: risk of game postponement or failure to meet expectations, overseas market risk, regulatory risk.