Galaxy Securities pointed out that in the short term, as the overall trend of version number distribution improves, the pressure to launch the company's products will be relieved to a certain extent. As a new round of product cycles begins, the profit side will gradually stabilize. Combined with the positive signals released by the policy side, it is expected that the positive signals released by the policy side will boost the valuation of the game industry and usher in a market recovery in industry valuation. Looking at the long term, with the rapid development of AIGC, it is expected to help game manufacturers achieve low-cost, high-quality mass production of scenes and original pictures in the future, thereby reducing costs and improving efficiency for game manufacturers. We focus on recommending game companies with strong R&D capabilities and large R&D investment, as well as leading Internet technology companies in AIGC. Recommended targets include: Tencent Holdings, Gibbit, 37 Entertainment, Perfect World, E-Soul Network, Zulong Entertainment, NetEase-S, etc.