Restart the distribution of edition numbers or drive the growth of the game industry, and continue to overweight the layout of the game sector
According to the game industry report from January to March 2022 released by Gamma data, the actual sales revenue of China’s game market and mobile game market in 2022q1 was 79.474 billion yuan and 60.432 billion yuan respectively, with a year-on-year increase of 3.17% and 2.72% respectively, and the year-on-year growth rate decreased by 2.06 and 3.53 percentage points respectively compared with 2021q1. We judge that the decrease in year-on-year growth rate is mainly due to the slowdown in the online rhythm of new games caused by the suspension of release of edition numbers, And the implementation of strict anti addiction measures for minors has reduced the length of time for minors. With the release of China’s game version number again on April 11, or drive the new game to speed up the launch, resulting in performance increment. For example, the company’s self-developed game “party star” was officially launched on April 23 after it got the version number on April 11. Obi Island: dreamland, developed by Baiao family interaction and represented by G-Bits Network Technology(Xiamen)Co.Ltd(603444) agent, will be tested in all channels on April 28. It may be launched in 2022. Based on the large number of fans accumulated by Obi Island, a classic IP with a history of 13 years, it will become a highly anticipated game, or bring considerable performance increment to R & D and publishers. At present, we continue to suggest that the game sector be configured based on triple logic: 1. The distribution of edition numbers has brought double boost to the valuation and performance of the game sector; In addition to accelerating the launch of new games, the re issuance of edition numbers or indicating the initial results of regulatory measures such as prevention of minors’ addiction, 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. 2. The game accelerates to the sea, or brings considerable performance increment; According to Gamma data, in 2022q1, the sales revenue of China’s independently developed games in overseas markets increased by 12% year-on-year, faster than the revenue growth of China’s game market, and the proportion of Chinese manufacturers’ self-developed games in global water head games continues to increase. Going to sea may continue to be an important driving force for the performance growth of Chinese game companies. 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 diversification” of the meta universe. With the improvement of game engine technology and design ability, open world games may gradually mature, provide content sources, technical basis and construction platform for the meta universe, and undertake the diversified needs of users based on high integration playing methods, so as to effectively improve the user scale and LTV. The game board highlights G-Bits Network Technology(Xiamen)Co.Ltd(603444) Hubei Century Network Technology Inc(300494) , Wuxi Boton Technology Co.Ltd(300031) etc.
The broadcast of “sound never stops” focuses on the opportunities brought by the improvement of the competition pattern of the long video platform
The Hong Kong music singing and tribute program “sound is alive” jointly launched by mango TV, Hunan Satellite TV and Hong Kong TVB was launched on April 24. In order to welcome the 25th anniversary of Hong Kong’s return, the program focuses on the nostalgic style of Hong Kong music. Based on its unique positioning and the lack of competitive products in the same schedule, it may drive the increase of mango TV traffic and the number of members. 2022q2 mango TV or IP variety “sister riding the wind and waves Season 3” will be launched, which is expected to further drive traffic growth. The sponsors of “sound living” include JUNLEBAO, Lan Tu, etc. the investment promotion of “sister riding the wind and waves Season 3” has also been actively promoted. Under the background that the advertising market is affected by macro-economy and epidemic situation, the advertiser’s budget may be inclined to the head variety show, and the investment promotion of mango TV variety show may be relatively bright. In addition, BiliBili has also increased its investment in diversified content. While users expand steadily, the duration is expected to continue to increase. While the long video platform is impacted by the short video, by reducing the cost and increasing efficiency, the content end is gradually cleared, and the competition pattern may be improved. Based on the advantages of self-made content and high stickiness of the community, mango TV and BiliBili may continue to increase their share in traffic end, members and advertising revenue. We mainly recommend Mango Excellent Media Co.Ltd(300413) , and the benefit targets include BiliBili SW.
Risk tip: there is uncertainty about the launch time of the new game, and the performance of variety shows such as “sound without rest” is lower than expected.
