Events
On April 11, the State Press and Publication Administration officially released the approval letter for domestic online games in April 2022. A total of 45 games were approved this time.
Comments
The release of version number is restarted again, or it reflects the gradual stabilization of relevant regulatory measures: from July to April 11, 2021, the version number has not been released for about 8 months. A total of 45 edition numbers were released this time, which is lower than 87 edition numbers in July of the 21st year, including “party star”, “dream Voyage” Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , ” G-Bits Network Technology(Xiamen)Co.Ltd(603444) ” tower Hunter “, Chuang mengtiandi” watch out for fire and candle “, Xishanju” origin of sword net 3 “and many other games won edition numbers. We believe that the restart of the version number may reflect the effective promotion of juvenile protection measures and the continuous standardization of the approval process, and the relevant management measures are expected to gradually stabilize in the future.
The valuation of game companies is currently at a historically low level. We pay attention to the recovery of the valuation center of high-quality game companies: according to the closing price on April 11, the valuation of game companies represented by Tencent is still at a low level. Among them, Tencent PE (TTM) is close to the lowest level in five years. According to the unanimous expectation of wind, the PE of Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) / Perfect World Co.Ltd(002624) / G-Bits Network Technology(Xiamen)Co.Ltd(603444) / Wuxi Boton Technology Co.Ltd(300031) 2022e is 16.37/10.76/14.53/11.86 respectively. We believe that with the resumption of the distribution of edition numbers and the continuous promotion of the game going to sea, we suggest paying attention to the recovery of the valuation center of high-quality game companies.
Restart the version number and pay attention to the reserve of relevant Games:
1) Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) : the company released the performance forecast for 21 years on February 22, in which the net profit attributable to the parent company is expected to be 2.8-2.85 billion yuan, with a year-on-year increase of 1.41% – 3.23%. “Puzzles & survival” performed well overseas, stable in the top 30 of IOS best seller list in the United States and the top 15 of IOS best seller list in Japan. Pay attention to the reserves of various key games of subsequent companies, including the codes of cards: C6, AOE of SLG, xiuxianzhuan of MMO and other games.
The same year, the number of overseas Mau increased by 22.54 million to 31.54 million. High quality self-developed games such as flash party, T3 and sword of lily of the valley, which pay attention to the company’s subsequent global playing methods, are expected to accelerate the growth of taptap users. Among them, the Chinese version of flash party, Party star, has obtained the version number on April 11.
3) G-Bits Network Technology(Xiamen)Co.Ltd(603444) : the company still has products with existing editions, including Obi Island: dreamland, dawn elite, ancient treasures, flowers fall in Chang’an, among which the key game Obi Island: dreamland is expected to be launched within this year, and tower hunter has obtained the edition number on April 11.
4) Perfect World Co.Ltd(002624) : the company’s projects will be more younger and focus on “MMO +” and “card +”. China still has reserves of “Tianlong Babu 2”, “one punch Superman: the world”, “million King Arthur” and “the world of killing immortals”; At the overseas end, magic tower is expected to launch an overseas version in 2022 and hand it over to Tencent for global synchronous distribution.
Investment advice
It is recommended to lay out the assets of high-quality game companies. It is suggested to pay attention to a shares: 1) Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) ; 2 Perfect World Co.Ltd(002624) ； 3） G-Bits Network Technology(Xiamen)Co.Ltd(603444) 。 Hong Kong stocks: 1) heart company; 2) Tencent holdings risk tips
Industry policy risk; New game online less than expected risk
