Event: on the evening of April 11, 2022, the official website of the State Press and Publication Administration officially released the latest batch of game version numbers, which was the first time to issue game version numbers since July 22, 21, 263 days later.
In April, 45 version numbers were distributed, most of which were light games, and a variety of head manufacturers’ games were listed. There are 45 edition numbers released this time, all of which were approved on April 8, 2022. Among them, there are 37 mobile games, 5 client games, 2 leisure and puzzle mobile games and 1 switch game Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) dream of sailing, thunder game tower hunter, box fission, heart network party star, Xishanju sword net 3: origin, Yoozoo Interactive Co.Ltd(002174) chronicles of the Three Kingdoms: Pocket battle, chuanmengtiandi watch out for fire and candle, friendship time relic zero and many other mobile games are listed. Most of the first batch of version number light games are lack of works from Tencent, and restarting the version number is also a significant improvement signal.
In the early stage, the valuation of game companies was low due to the suspension of edition numbers and external comprehensive factors. Under the combined influence of platform antitrust regulation, suspension of game version number and market adjustment in the past 21 years, as of April 11, 2022, the cumulative decline of Tencent / Netease / Panax / perfect / G-Bits Network Technology(Xiamen)Co.Ltd(603444) share price of leading company has reached 20% / 9% / 11% / 39% / 17% in 22 years, and the PE of 22 years has been 21x / 19x / 17x / 12x / 15x respectively. The average valuation of game version is 15x, and the valuation of game company is at a low level.
Since March, the policy has continued to release marginal improvement signals in the game sector and China concept stocks. At the meeting of the Finance Committee of the State Council in March 22, aiming at the platform economy, it was proposed that “we should adhere to seeking progress while maintaining stability, steadily promote and complete the rectification of large platform companies through standardized, transparent and predictable supervision, and set up red lights and green lights as soon as possible, so as to promote the stable and healthy development of platform economy and improve international competitiveness”, It was also mentioned that “relevant departments should earnestly assume their responsibilities, actively introduce policies conducive to the market and carefully introduce contractive policies” to boost market confidence. On the Internet, following the CSRC’s statement on March 31 that the overall talks with the U.S. accounting supervision commission (PCAOB) were smooth, on April 2, the CSRC announced the provisions on strengthening the confidentiality and archives management related to overseas securities issuance and listing of domestic and foreign enterprises (Exposure Draft), focusing on promoting cross-border listing regulatory cooperation and clarifying the information security responsibilities of overseas listing of domestic enterprises, The original statement that “the on-site inspection shall be mainly conducted by Chinese regulators or rely on the inspection results of Chinese regulators” is deleted. The restart of the game version number echoed the meeting of the financial committee in March, released the marginal improvement signal of policy, strengthened the positive expectation of the market, and is expected to drive the improvement of the sentiment of the sector.
Investment suggestion: the restart of the game version number is directly beneficial in the short term. For the project of the game company that has obtained the version number to go online, it is more helpful to restore the industry confidence and stable growth expectation in the medium term. In the long term, as a high correlation industry of the meta universe, VR and AR have imagination space for reshaping the industrial space. Since the end of March, the strategy and weekly newspaper since the end of March, the strategy and the three-month week since the end of March, the strategy and the weekly newspaper have made clear judgments about the release of the number of releases, and made clear clear judgments about the release of the release of the version number. It’s been the end of the month, since the end of the month, the strategy and the three months since the end of March, the strategy and the three months since the end of the month, the strategy and the weekly newspaper have clearly judged the release of the release of the page number, and it’s recommended to focus on the mid cap stocks tencetence (07 Jiangnan Mould & Plastic Technology Co.Ltd(000700) .hk. HK), Netease (99999999 beebeebeebeebeebeebeemile (9626. HK) 9626. HK), cardioheart Corporation (2400. HK) (2400. HK), A-Shares Hongda Xingye Co.Ltd(002002) Hongda Xingye Co.Ltd(002002) Hongda Xingye Co.Ltd(002002) Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) 55 wait.
Risk tip: the release progress of game version number is not as expected, the online progress and flow of game projects are not as expected, and the industry supervision is becoming stricter
