Key points of the report:
China's mobile travel to sea has formed three advantages of capital, R & D and operation, and policy opportunities at home and abroad help the transformation of going to sea.
In terms of investment, traditional and new investment in cutting-edge game technology and powerful global game studios to build a moat of content and platform; In terms of R & D, Xing game forces are focusing on R & D. years of experience in mobile terminal development has narrowed the gap between China's game R & D technology and foreign countries, and some manufacturers have formed excellent self-research capabilities; In terms of operation, China Sea company with internet gene blessing has mastered the buying volume operation methodology and continuously improved its ability to control overseas distribution channels; In terms of policy, all localities encourage games to go to sea and level a wide road for game factories and shops; More sound sharing conditions of foreign channels improve the driving force of game manufacturers to develop high-quality content.
Analysis of the game's sea playing method: four sea strategies show their magic powers. According to the main advantages and characteristics of each company, we believe that offshore companies can be divided into the following four categories: the first category: companies with strong capital strength and global multi-line operations, such as Tencent and bytecom; Second, companies that build vertical channels to obtain distribution advantages and consolidate the pool of practical users, such as heart companies; The third category is companies with deep localization, long-term and fine operation of games, such as Netease and Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) ; Category IV: companies that deeply cultivate advantageous categories and form differences in quality, such as MIHA tour and Lilith.
Investment suggestion: This report mainly analyzes the sea going advantages and sea going strategies of Chinese game companies.
From the perspective of game companies themselves, the level of game R & D is gradually in line with the global mainstream level under the background of the improvement of Chinese players' aesthetics and employees' level and years of technology accumulation; And through the experience of China's highly competitive game distribution and operation market, the overseas manufacturers have the growth confidence and strength in the overseas market relative to the blue ocean. In terms of the external environment, the overseas channel sharing environment is favorable for high-quality game developers, and the game approval environment is relatively loose. In terms of policy guidance, China's regulation encourages games to go to sea, which is expected to become another growth engine of the game industry. According to the sea playing methods of important game companies, we suggest to pay attention to three main lines: 1) pay attention to the company's R & D capacity and IP reserves: the accumulation of mobile games under the bonus of Chinese engineers has narrowed the gap between R & D technology and foreign countries, and some enterprises have formed global competitiveness in R & D, At the same time, head game companies are constantly investing in forward-looking game technology and the world's top R & D strength game studios, arranging global expansion and sub era game research and development, and cooperating with well-known game IP to obtain more global users. Companies include: Tencent holdings, China Mobile Games, G-Bits Network Technology(Xiamen)Co.Ltd(603444) . 2) Focus on the company's localized operation capability:
Insight into the preferences of overseas players determines the success of long-term operation in the segment market, which requires game enterprises to fully match the portraits of players in the target country in terms of market research, play optimization and marketing means. Companies include: Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Netease. 3) Focus on the operation ability of vertical platform: highly viscous user groups are often the most critical groups for the development of game operation, and the development of global game player community is the premise to gather such users.
Companies include: heart company.
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) ）
