Event:
According to the official website of the State Press and publication administration, the first batch of domestic game version numbers were issued in April 2022, and a total of 45 domestic games were approved.
Comments:
After an interval of 8 months, the game version number will be reissued. On April 11, 2022, after eight months of suspension, the State Press and Publication Administration issued the first batch of domestic game version numbers in April. A total of 45 games were approved, including 39 mobile games, 5 end games and 1 host game, including Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) the dream of sailing and Yoozoo Interactive Co.Ltd(002174) the chronicles of the Three Kingdoms: Pocket battle.
The policy margin is improved, the short-term valuation is expected to be repaired, and the medium and long-term are optimistic about the manufacturers with self-research strength and sea going ability. In the early stage, affected by the suspension of the release of version numbers, the launch progress of products was delayed, and the performance and valuation of relevant companies were under pressure to a certain extent. Among them, the PE TTM of Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , G-Bits Network Technology(Xiamen)Co.Ltd(603444) and other companies has fallen to the lower central level in recent five years. In the short term, with the marginal improvement of the policy, the backlog of version number applications in the early stage is expected to be approved one after another, the industry confidence will be boosted, and relevant companies are expected to usher in valuation repair. In the medium and long term, the trend of strong content supervision may continue further, which is good for relevant manufacturers with high-quality R & D ability, and optimistic about relevant manufacturers with sea liquidity.
Investment suggestion: in the short term, with the re issuance of the version number, the marginal improvement of the policy is expected to boost the confidence of the industry, and the relevant companies are expected to usher in the valuation repair. In the medium and long term, the regulatory trend of strong content may continue further. We are optimistic about relevant manufacturers with high-quality R & D ability, and suggest paying attention to relevant manufacturers with sea liquidity. It is suggested to pay attention to Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) ( Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) ), G-Bits Network Technology(Xiamen)Co.Ltd(603444) ( G-Bits Network Technology(Xiamen)Co.Ltd(603444) ), Perfect World Co.Ltd(002624) ( Perfect World Co.Ltd(002624) ), etc.
Risk warning: industry supervision is further tightened; The project online progress is less than expected, affecting the performance; Intensified industry competition, etc.
