GTJA released research reports stating that they are optimistic about the future of the gaming industry.
Smart Finance APP learned that GTJA released research reports stating that they are optimistic about the future of the gaming industry. This optimism mainly comes from: 1) Positive government policies, with a high level of industry standardization; 2) Improved player appreciation, diverse platforms for product launches, making it easier for high-quality products to gain recognition; 3) After a relatively conservative 2024, most gaming companies have ample reserves on hand, providing solid support for the 2025 performance. Continued bullish outlook on companies with strong product reserves and competitive advantages.
GTJA's main opinions include:
Large cap gaming sector: The downward trend in industry growth has improved in August and September. The overall gaming sector has been weak since the beginning of this year, especially starting in Q2, with reduced product supply. From April to July, the game market revenue showed a year-on-year negative growth, until a recovery began in August and September, with a year-on-year revenue growth of 15.1%/14.9%, a significant recovery trend. If supply continues to increase in the fourth quarter, the market is expected to further improve. Looking deeper, the trend in mobile game revenue is the main driving force, with a year-on-year growth rate turning positive to 10.5% in September, strongly driving the recovery of the large cap. In addition, heavy content consumption by players, light demand, and overseas demand are worth noting, corresponding to the growth trends in the console, mini-game, and overseas game markets.
A-share market: Kingnet, 37 Interactive Entertainment Network Technology Group and other companies have positive product schedules for 2025, G-bits network technology, Perfect World are expected to reverse trends. Kingnet Network's 2024 pipeline products include "Rainbow Orange", "The Lost Tomb Notes: The Beginning", "Dragon Nest World", with reserves including "Douluo Continent: The Legend of Evil Beasts", "Black Cat Sheriff", "Digimon: Source Code", "Nasaliuke: Rise"; 37 Interactive Entertainment Network Technology Group's "Douluo Continent: Soul-Hunting World" was first showcased in August 2024 with a combat showcase video released in September. The company has more than 20 self-developed or agent products in hand; G-bits network technology self-developed "M72" "M88", and agent "Ten Billion Light Years" are expected to be launched in 2025, with long-term expectations for "M11" and "The Strongest Castle"; Perfect World's "Unique Ring" has over 2.8 million platform reservations, a warm response in offline testing, expected to launch in 2025.
HK stock market: Tencent and Netease lead in reserves, Xindong, Bilibili, Kingsoft actively explore. Tencent has a rich pipeline of projects, focusing on three directions: branding of own IP, cooperation with globally renowned IP games, and advantageous categories like shooting games. Short-term attention is on the launch progress of the "Fearless Contract" mobile game; Netease has titles like "Yan Yun Sixteen Sounds", "FragPunk", "Code: Infinity"; Xindong's "Let's Go Muffin" and "Xindong Village" have performed well, with ongoing focus on expansion outside mainland China; Bilibili's "Three Kingdoms: Mudo Tianxia" continues long-term operation, continuing to invest in gaming business exploration; Kingsoft (Westward Journey) attempts mech battle PC games with "Jiexianji".
Risk Warning: New product launch progress may fall short of expectations; risks from local policies in overseas markets; intensifying industry competition increasing costs.
