Author: Lin Qiao
On March 3, game and media stocks bucked the trend, with individual stocks Guangguang Media and Fuchun rising by more than 20%, and Shenzhou Taiyue rising by more than 15%. The CSI Animation and Game Index, which reflects the trend of A-share listed game stocks, rose 11.5% again, and the index has recovered by more than 03% over the year, quietly becoming the most outstanding segment, and a number of game ETFs rose more than 27% during the year.
After the market closed, the State Press and Publication Administration released the approval information for imported online games in 2023, and a total of 27 games were approved, and well-known game companies such as Tencent, Netease, and Bilibili all made gains. Some institutions believe that the return to normal issuance of version numbers has brought strong confidence to the market, which is conducive to the valuation repair of the overall sector, and the prosperity of the game industry continues to recover.
In addition, the chatbot program developed by OpenAI in the United States has recently become popular in the circle, and artificial intelligence has once again become the wind outlet of the capital market. Some institutions said that the game industry and AIGC (refers to the use of artificial intelligence technology to generate content) have natural adaptability, which is expected to bring a new round of outbreak in the game industry, so this will have a transformative impact on the game industry.
In 2023, the imported online game version number will be released
In terms of specific products, including Tencent game "Manor Combination", "Legend of Seven: The Battle of Light and Darkness", NetEase game "Power Dance Troupe: National Party", Bilibili game "Shine! Youjun Girl ("Horse Racing Girl" national uniform), Xindong Network "Painted World", Dream World "Mecha Team", Youxing Network "Azure Files" and many other key products.
Entering 2023, the State Information Administration announced 1 game version numbers in January and 96 game version numbers in February, and this time it is an imported game version number, less than 2 months after the last imported game version number issued.
In addition to the significant relaxation of the number of edition numbers in December this year, since entering 12, the timing of version issuance has become more regular, and West China Securities has judged that the shortening of the approval process is the main reason. "We maintain our judgment on the game industry, the industry supply is picking up, the new product launch cycle will be shortened accordingly, and major manufacturers are restarting classic mobile games that were previously suspended, and the performance is expected to achieve rapid repair in 2023H1, and the expected improvement is also expected to boost valuations."
Guolian Securities believes that the normal issuance of version numbers will help the game market recover. The return to normal issuance of version numbers has brought strong confidence to the market, which is conducive to the valuation repair of the overall sector, and the prosperity of the game industry continues to recover. Since the resumption of the issuance of the edition in April 2022, the number and quality of new tour launches are also expected to increase, and it is recommended to pay attention to the head companies with rich version reserves, strong R&D capabilities and high-quality products.
The game sector was the first to break through after the year
On March 3, game and media stocks bucked the trend, with Guangguang Media and Fuchun rising by more than 20%, and Shenzhou Taiyue rising by more than 15%. Driven by individual stocks, the CSI Animation and Game Index, which reflects the performance of the A-share listed game stock market, rose 11.20% again on the 5th, and the index has recovered by more than 03% after the year, quietly becoming the most outstanding subdivision.
In terms of individual stocks, none of the companies in the sector have fallen after the year, Kunlun Wanwei rose by 93%, and it is a stone's throw away from becoming a doubling stock, Shenzhou Taiyue rose by more than 60%, Baotong Technology, Yao Kee Technology, etc. rose by more than 50%, and the game sector market has been launched since the end of last year, and the current point is still more than 2020% lower than the previous high set in 27. In terms of index funds, Huaxia CSI Animation Game ETF and Huatai Berry CSI Animation Game ETF both rose by more than <>%.
Recently, the gaming industry has been positive. CICC believes that with the normalization of version numbers, many parties affirm the multi-dimensional value of games under the healthy development of the industry, and 2023 may welcome a big year of supply and demand.
From the perspective of the external environment, the signs of marginal improvement are obvious:
1. At the supply level, the normalization of the release rhythm of the version number boosts the confidence of manufacturers, which is expected to lay the foundation for the release of subsequent products.
2. At the external evaluation level, People's Financial Review under People's Daily Network and Xinhua Daily Telegraph under Xinhua News Agency issued articles affirming the positive value of the game, pointing out that while promoting the healthy development of the industry, it should "promote the release of new economic, cultural and technological value".
3. At the level of industry guidance, the 2022 Game Industry Annual Conference was held in mid-February, and the Central Propaganda Department proposed to promote "positive energy" as the main keynote of online game development, implement the "online publishing technology innovation and development plan", and guide the technological innovation and development of the underlying game.
CICC believes that with the implementation and improvement of the protection of minors, under the guidance of policies, the game industry tends to be healthy, standardized and refined on the supply side, and has basically entered a stage of healthy and steady development, and is expected to benefit from the normalization of the edition number to welcome the new product year within the year. On the demand side, domestic game turnover is more correlated with the payment ability of head players, or benefits from economic recovery. In the medium and long term, it is expected to achieve breakthroughs and applications in VR/AR, AI technology, game engines, etc., and achieve high-quality development of the game industry.
The technological revolution creates a new mode of gaming
It is understood that this year, the Central Propaganda Department will implement the "Online Publishing Technology Innovation and Development Plan", focusing on promoting breakthroughs in technological innovation of online games such as virtual reality, perceptual interaction, game engines, and motion capture, and promoting the expansion and application of new formats such as meta-universe, digital twins, and cloud games.
Recently, the chatbot program developed by OpenAI in the United States has become popular in the circle, and artificial intelligence has once again become the wind outlet of the capital market. CSC said that the game industry and AIGC (refers to the use of artificial intelligence technology to generate content) have natural adaptability, which is expected to bring a new round of outbreak in the game industry, and the game industry will bring transformative impact, it said: First, AIGC will reduce production costs, improve quality, improve efficiency, and break the impossible triangle of "quality, efficiency and cost" in the game industry; Secondly, it will create new gameplay and experience, and AIGC is expected to bring transformative improvements in content quality; Third, AIGC is also expected to make the supply of boutique games likely to grow significantly.
A few days ago, Baidu Wenxin Yiyan was officially released, and a number of companies have applied to become Baidu Intelligent Cloud Wenxin Yiyan API call service testing enterprises, Giant Network, CMGE and other game companies have also announced that they will access Wenxin Yiyan to further explore the application of AIGC game field. Huatai Securities believes that the huge demand contained in the game market itself is a good application scenario for AIGC and other technologies, and the progress of related technologies will further improve the product quality and comprehensive competitiveness of China's game industry, thereby driving the long-term growth and valuation of the industry. (Brokerage China)