Based on the triple logic layout, the game section: release and restart of edition number, acceleration of going to sea, and opening of long-term space in metauniverse
On April 11, the official website of the State Press and Publication Administration released the first batch of game version numbers since July 2021, with a total of 45. The games of listed companies such as G-Bits Network Technology(Xiamen)Co.Ltd(603444) , Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Yoozoo Interactive Co.Ltd(002174) , Xinxin company and chuangmengtiandi won version numbers. Although the market had some expectations for the restart and distribution of game version numbers, in the short term, the distribution of version numbers is expected to be fulfilled, in the medium and long term, we believe that the current investment in the game sector has triple logic: 1. The distribution of version numbers has a double boost to the valuation and performance of the game sector; The resumption of the release of the game version number may indicate that the regulatory measures such as the prevention of addiction of minors have achieved initial results, which will boost the market’s confidence in the long-term development of the game industry. Due to concerns about the repair power of the valuation of the game sector suppressed by regulation, and after the release of the version number, the subsequent launch of new games will bring revenue increment and drive the improvement of the performance growth of the game sector. 2. The game accelerates to the sea, or brings considerable performance increment; According to the data of sensor tower, in 2021, the revenue of 42 Chinese mobile games in the overseas market exceeded US $100 million, an increase of 5 models year-on-year. Chinese listed game companies have global competitiveness in mobile game R & D, distribution capacity and experience. Superimposed on the commercialization of tiktok, overseas revenue may become an important driving force for performance. 3. Open world games or the prototype of meta universe products to further open the growth space of the game industry; Open world games have the characteristics of “identity, social interaction, immersion and diversity” of the metauniverse, and open up multiple ends. They are becoming the direction of the layout of head game manufacturers, data AI shows that the open world mobile game “original God” still ranks first in the global mobile game revenue ranking in 2022q1 more than a year after its launch. Perfect World Co.Ltd(002624) , Tencent have also launched or approved open world games. With the improvement of game engine technology and design ability, open world games may gradually mature, provide content sources, technical foundation and construction platform for the meta universe, and undertake the diversified needs of users based on highly integrated playing methods, Effectively improve the user scale and LTV. At a time when valuatvaluatvaluatare still low, we suggest that we strengthen the allocation of game sectors at a time when we’re still at a low valuation, and we suggest that we put more emphasis on the allocation of game sectors, with the focus on G-Bits Network Technology(Xiamen)Co.Ltd(603444) , Hubei Century Network Technology Inc(300494) , BiliBili SW, etc.
The industrialization of each sub circuit of yuanuniverse has been continuously promoted in the exploration, and the fields with rapid commercialization have been actively arranged
According to cnr.com, on April 13, China Internet Finance Association, Bank Of China Limited(601988) Industry Association and China Securities Industry Association jointly issued the proposal on preventing financial risks related to NFT. The initiative mentioned “giving full play to the positive role of NFT in promoting industrial digitization and digital industrialization, and resolutely curbing the tendency of NFT to finance and securitize”. We believe that NFT is now more a technology based on blockchain and used to realize the right confirmation and copyright protection of digital products in China, which is more used for the distribution of digital collections. Its connection with the “economic system” of the meta universe also lies in its provision of right confirmation technologies and tools, It protects the ownership of digital assets, and then improves people’s willingness to pay for digital cultural and creative products. The initiative for NFT de financing and securitization may make it better serve the development of digital industries such as digital cultural and creative products. The industrialization of each segment track of metauniverse in China is still under exploration, or due to the market’s concern about the tightening of NFT supervision caused by the initiative, the valuation of related fields of metauniverse has dropped significantly recently. However, based on the active promotion and long-term space of metauniverse in technology and application, combined with the performance trend, valuation safety margin and commercialization progress, we suggest to actively layout virtual people, virtual communities and NFT tracks, Focusing on the recommendation of Mango Excellent Media Co.Ltd(300413) , Zhejiang Jinke Tom Culture Industry Co.Ltd(300459) .
Risk tip: the online time of the new game is uncertain, and the progress of metauniverse commercialization is lower than expected
