Level Up: Gaming Sector Set for Oversold Rebound as A-Share Game Companies Unleash Pipeline of New Releases
New Game Release Window Continues to Improve, A-Share Game Companies’ Pipeline Release Expected to Accelerate
The morning of September 10 saw the three major A-share indexes open slightly higher, with the Shanghai Composite Index up 0.05%, the Shenzhen Component Index up 0.01%, and the ChiNext Index up 0.08%. Construction Machinery, Precious Metals, shipping, water affairs, and other sectors saw the largest increases, while land transportation, home appliances, motorcycles, and other sectors saw the largest decreases. The gaming ETF (159869) fell sharply by more than 1.5%.
According to Gamma Data, the size of the game market in July 2024 increased by 4% month-on-month and decreased by 3% year-on-year, and the market size has maintained month-on-month growth for three consecutive months. The mobile terminal, client, and other markets have shown a month-on-month growth trend, and long-term products and new products have contributed to the growth. The number of game licenses issued in August hit a new high since 2019, and the recent phenomenal product ”Black Myth Wukong” was recognized by the central media, indicating that the industry policy environment is improving.
A-share game companies have a rich reserve of games, such as Kaiying Network’s “Douluo Dalu: The Legend of Zhuxie”, “Grave Robbers’ Chronicles: The Beginning”, etc. Gigabit’s “Asking the Sword of Immortality” and “Legend of the Staff Sword”; 37 Interactive Entertainment’s “Douluo Dalu: The World of Soul Hunting” and “The Son-in-law” etc.
Tianfeng Securities expects that with the improvement of the new game release window, the pipeline release of A-share game companies is expected to accelerate, and we will continue to pay attention to the potential fundamental improvement elasticity driven by the launch of new games.
The gaming sector has multiple catalysts for change in AI, content, and commercialization models. The Gaming ETF (159869) tracks the CSI Animation and Gaming Index, reflecting the overall performance of A-share listed companies in the animation and gaming industry.
Source: Daily Economic News
Original title: New game release window continues to improve, A-share game companies’ pipeline release is expected to accelerate, seize the opportunity of oversold rebound in the game sector