Event: on April 11, the State Press and Publication Administration issued the first batch of edition numbers in 2022. A total of 45 games have been reviewed, including 39 mobile games. This is the first time that edition numbers have been restored since July 22 last year.
The products of several listed and head game companies have been reviewed. In the approval list of this edition number, the key products include the exciting self-developed mobile Tour “party star”, the tower hunter of thunder interactive ( G-Bits Network Technology(Xiamen)Co.Ltd(603444) subsidiary), Yoozoo Interactive Co.Ltd(002174) the chronicle of the Three Kingdoms: Pocket battle “, the careful fire and candle of chuanmengtiandi, the virtual tree maze of mutual love interactive (Wanda film and television subsidiary), Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) the agent product” dream Voyage “, Lilith’s life party And the end tour of Xishanju, such as the origin of sword net 3.
The resumption of edition number will help China’s mobile game market resume growth. After the suspension of the edition number, the growth rate of the industry fell to single digits. According to Gamma data, the actual sales revenue of 4q21 China’s mobile game market was 55.3 billion yuan, a year-on-year increase of 2.1%, and the growth rate slowed down (vs1h21 growth rate of 15% +). With the resumption of the release of the version number, high-quality new tours will be launched one after another, which will help the industry resume growth.
The mobile game industry will continue to focus on “high-quality products” and benefit CP with strong R & D strength. With the improvement of game equipment performance, audience aesthetics and the supply side reform of version number restrictions, the trend of high-quality game content and long-term operation will be more obvious. Game manufacturers will upgrade and transform independently and constantly polish product quality. We believe that game manufacturers with outstanding R & D capabilities and widely recognized products can obtain more market share, gradually strengthen the voice of the industrial chain, and are expected to share more benefits.
“Going to sea” is still the general direction. According to the statistics of sensortower, in 2021, the total revenue of 42 Chinese mobile games at sea exceeded US $100 million, with an increase of 5 products year-on-year. The total revenue of top 30 mobile games at sea in app store and Google play reached US $11.5 billion, with a year-on-year increase of 24%. Chinese manufacturers have increased their efforts to explore overseas markets, and the proportion of going to sea has gradually increased. Taking Tencent as an example, the growth rate of Tencent 4q21’s revenue from going to sea was 34%, far exceeding the growth rate of China’s game business. The international market accounted for 31% of the company’s game business revenue, an increase of 6pct year-on-year. We believe that the resumption of the distribution of edition numbers will not change the momentum of Chinese manufacturers going to sea.
Investment suggestion: since the release of the version number was stopped, the valuation of the game industry has been under pressure. We believe that with the restart of the version number, the product launch expectation of head game manufacturers with strong R & D and operation strength is clearer, the performance certainty is enhanced, and the valuation of the game sector is expected to be repaired quickly. 1) It is suggested to pay attention to the head game manufacturers with rich product reserves, such as Tencent Holdings (0700. HK), netease-s (9999. HK), Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) ( Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) . SZ), G-Bits Network Technology(Xiamen)Co.Ltd(603444) ( G-Bits Network Technology(Xiamen)Co.Ltd(603444) . SH), Perfect World Co.Ltd(002624) ( Perfect World Co.Ltd(002624) . Sz), etc; 2) It is suggested to pay attention to the heart company (2400. HK), gradually realize the self-developed products, and improve the content richness of taptap platform, which is expected to promote the further growth of Mau.
Risk tip: the industry competition intensifies, the policy supervision risk, and the performance of Xinyou is less than expected
