Event: the release of the game version number was restarted every 8 months, and a total of 45 games were approved. On April 11, the release of the game version number was restarted every 8 months, and a total of 45 games were approved. Including Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) dream voyage, G-Bits Network Technology(Xiamen)Co.Ltd(603444) tower hunter, box fission, heart company's party star, Chuang mengtiandi's watch out for fire and candle, game network's Three Kingdoms: Pocket battle and other head game company products. We look forward to the industry marginal changes and investment opportunities brought by the restart of the game edition through the impact of the suspension and resumption of the distribution of the game edition in 2018 on the prosperity, company operation and stock price of the game industry.
At the industry level, the restart of edition numbers is expected to drive the overall prosperity of the game industry. From the number of edition numbers, the number of edition numbers issued every month has shown a downward trend since the regulatory authorities proposed to control the total number of game edition numbers issued in August 2018. However, 45 game edition numbers were issued this time, which is less than the average monthly number before August 2021. It is suggested to continue to pay attention to the approval rhythm of game version number, the number of distribution and whether it has entered the stage of normalized supervision. From the perspective of market prosperity, similar to the situation in 2018, the growth rate of China's mobile game market has gradually slowed down since the release of version numbers was stopped in August 2021, and the year-on-year growth rate has dropped to 2% in February 2022. In the future, with the approval and issuance rhythm of game version numbers entering the new normal, the rich supply of new games is expected to drive the overall prosperity of the game market to rebound.
At the company level, head game companies have rich product reserves and pay attention to the incremental performance released by Xinyou online. From the product reserves of Chinese head game companies, Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) agents and self-developed games are leading the industry, and the categories are still mainly MMO and SLG Perfect World Co.Ltd(002624) are all self-developed games, and the category is gradually expanding to the younger direction such as the second dimension. At present, the client game "xinzhuxian world" has obtained the version number G-Bits Network Technology(Xiamen)Co.Ltd(603444) is dominated by proxy games, and most games have obtained version numbers Zhejiang Century Huatong Group Co.Ltd(002602) 's Shengqu games mainly focus on self-developed MMORPG and Japanese secondary category. Among them, the mobile game "legendary world" has been set for April 20, 2022. The Games in this batch (April 11, 2022) with the version number include Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) dream voyage, G-Bits Network Technology(Xiamen)Co.Ltd(603444) tower hunter, box fission, and heart of the party
And others are expected to go online within the year and take the lead in contributing to the performance increment. For other games that have not yet received the version number but have a high degree of completion, it is recommended to continue to pay attention to the distribution rhythm of the subsequent Chinese game version number and the sea going process of the head game company.
Investment advice
In the short term, after an interval of 8 months, the release of game version numbers will resume, which is expected to alleviate the market pessimism and boost the overall valuation level of the industry. In the medium term, the new games belonging to 45 version numbers in this batch are expected to be launched in the near future. At the same time, pay attention to the distribution rhythm of subsequent version numbers and the continuous realization of the company's performance after Xinyou goes online.
In the long run, with the rhythm and quantity of edition number distribution entering the new normal, the impact of the eight month empty window period of edition number from 2021 to 2022 on the game industry and listed companies will be gradually cleared, and the trend of "content is king" will also be highlighted for a long time, which will contribute to the healthy and orderly development of the industry. From the perspective of valuation level, among the current head game companies, Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) pe 16x, Perfect World Co.Ltd(002624) 11x, G-Bits Network Technology(Xiamen)Co.Ltd(603444) 15x (consistent expectation caliber), are at a historical low compared with the historical valuation center of the game industry (about 25X). We believe that after the restart of the version number, the inflection point of the game industry has arrived, and it is expected to achieve the goal of valuation boost + performance release. It is suggested to focus on high-quality game developers Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Perfect World Co.Ltd(002624) , G-Bits Network Technology(Xiamen)Co.Ltd(603444) , Hangzhou Electronic Soul Network Technology Co.Ltd(603258) , as well as the company with Xinyou version number + game community taptap.
Risk tip: the release of game version number is less than expected, the online process of Xinyou is less than expected, and the risk of intensified industry competition.
