Key points of the report:
The competitiveness of China's mobile games has been continuously enhanced, and the game has broad prospects for going to sea. At present, the global mobile game market is facing a new round of strong growth. The scale of China's mobile game market to the sea continues to improve, mainly benefiting from the low penetration of overseas mobile game market, the change of game habits brought by epidemic online dividends and its own excellent game playing quality.
With deep cultivation of characteristic categories and strong localized operation strength, China Mobile Games has quickly captured share in mature and emerging markets. The accumulation of technology and operation of Chinese game manufacturers in SLG, action and MoBa Games has triggered qualitative changes, forming a comparative advantage over local Games in Europe, America, South Korea, Japan, Southeast Asia and other places. Chinese manufacturers have opened up the situation in the European and American markets with SLG categories; Relying on deeply localized operation and differentiated categories, Chinese manufacturers have realized the reverse output of secondary and non-secondary themes to the Japanese and Korean markets; In the markets of Southeast Asia, Hong Kong and Taiwan, due to the close cultural and economic ties with the mainland, Chinese manufacturers have nearly half of the products.
From deep cultivation of key categories to full category layout, IP has great potential value. 1) The playing methods of medium and heavy games will be upgraded iteratively with technological progress. From the history of game development, the development of the business model of medium and heavy Games has been pursuing the improvement of payment intensity and player scale. We believe that based on the current product form of medium and heavy games, taking into account player preferences and player experience, we can deeply tap the payment ability of IP users The development direction is to deeply explore game playing methods, prolong the life cycle, deeply integrate into scientific and technological development, and improve user experience and stickiness. Medium and heavy games are advanced to three types: Idol games, super games and meta universe games. 2) Sea going manufacturers have structural opportunities to layout leisure game tracks. The market scale of leisure games is increasing, the user payment is gradually increasing, the user stickiness is good in Japan and South Korea, and the incentive video will significantly improve the income level. Therefore, China Sea game companies can focus on this kind of market. 3) The integration of mild and severe play methods will improve user coverage and content utilization. The mild playing method of medium and heavy games will retain more leisure players and reduce the consumption speed of game content. Severe PC games can be transplanted to the mobile terminal by simplifying the playing method, and the moderate and severe leisure games will improve the payment level of players. 4) China's mobile travel to sea will gradually move towards IP independent innovation. In the process of participating in the production of the world's top IP games, overseas manufacturers have accumulated experience in the operation of the Western game market, and in the future, the original IP will replace the outsourced IP and become the mainstream. Original IP not only leaves enough space for manufacturers to build a global world outlook, but also can effectively export Chinese culture.
Investment suggestion: according to the game industry report data, the actual revenue of China's self-developed game overseas market in 2021 was US $18.013 billion, with a year-on-year increase of 16.59%. Although the growth rate decreased compared with the same period in 2020, the overall 6% growth rate of the Chinese market still showed a higher growth trend, and the countries / regions and categories of sea games were more diversified. In the future, the performance of the overseas game market is expected to continue to inject growth power into China's game industry and Chinese game companies. In terms of target, it is suggested to pay attention to the game leading targets in the development of game overseas business in A-share game companies, including Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , G-Bits Network Technology(Xiamen)Co.Ltd(603444) , Zhejiang Century Huatong Group Co.Ltd(002602) , Perfect World Co.Ltd(002624) , Ourpalm Co.Ltd(300315) , Yoozoo Interactive Co.Ltd(002174) .
Risk tip: risk of changes in overseas game regulatory policies; The risk that the cost of buying volume rises too fast; The new game is seriously less than expected; Goodwill impairment risk; Foreign exchange gain and loss risk of overseas business.
（ Shanxi Securities Co.Ltd(002500) ）
