Recently, Qimai Data released a ranking of popular games for March 2024, including the top 30 most popular game downloads and the top 30 most popular game revenue lists.

In the popular game download list, the top 3 are “Wang Zhe Rongyao”, “Peace Elite” and “Battle of the Golden Shovel” under Tencent (00700).

Judging from the distribution of manufacturers, Tencent has the most products on the list, with 11 models; followed by NetEase products, with a total of 5 products on the list; 2 products made the list.

In the top game revenue list, Tencent's “Wang Zhe Rongyao” and “Peace Elite” still occupy the top two places. NetEase's “Against the Cold” ranking rose 4 places from last month to occupy the top 3 positions.

“Against the Cold” reached a peak in gold absorption in March through iterations of multiple activities, gameplay, etc. For example, the game had a major update of the first open world map of the universe, a new copy of the fantasy world; it was deeply linked to the popular TV series “Lotus House” to attract drama fans, etc., with remarkable results.

On April 8, the State Press and Publication Administration announced the version information of online games imported in April 2024. A total of 14 games received edition numbers. “Mega Man 11” published by Tencent and “Divergence Million: King Arthur: Ring” published by Perfect World were listed.

Up to now, 46 imported game editions have been issued this year, surpassing 27 in the same period last year.

In terms of domestic game versions, domestic game versions were officially released on March 29, 2024, and a total of 107 domestic games received editions. The number of editions broke 100 for 4 consecutive months. Since then, the number of approvals has exceeded 100 for 4 consecutive months (105 models in December 23, 115 models in January this year, 111 in February).

Huachuang Securities pointed out that after early adjustments, the valuation of the game sector has returned to a low level. The mid-term proposal focuses on the upward direction of prosperity and long-term focus on technology implementation. It is recommended to focus on three main lines:

1) Overseas business accounts for a relatively high proportion, representing the direction of cultural overseas travel;

2) Represents the leading qualitative direction and competes for youth growth;

3) Fundamentals seize segmentation opportunities+there is room for repair in valuation.

Companies related to the game sector:

Tencent Holdings (00700): Starting January 21, the Douyin live broadcast of “Wang Zhe Rongyao” will be fully open. “Yuanmeng Star” performed well, and has rich game reserves or continues to drive the growth of the game business. Citi expects that Tencent's domestic games will resume year-on-year growth in the second season. The e-commerce season may support video account advertising and live streaming expenses. It is believed that total revenue growth will accelerate again from the second quarter to the fourth quarter.

NetEase - S (09999): UBS pointed out in the research report that NetEase published the blockbuster “Project Eagle” on March 28. It is initially estimated that the first 12 months after the launch of the new work will contribute about 6 billion yuan in revenue, or 6% of NetEase's total revenue in 2023, and is expected to contribute 800 million to 1 billion yuan in revenue for the first month.

China Mobile Games (00302): China Mobile Games insists on building a diversified IP game ecosystem, forming a core competitive advantage with “IP resources - independent research and development - global distribution - own IP operation - Guofeng Metaverse platform”. It has complete plans to launch new games and rich product reserves.

Chizicheng Technology (09911): Since August 2023, the company's 3 social networking products, including MICO, YoHo, and SUGO, have simultaneously entered the “China Non-Gaming App Overseas Revenue Ranking” TOP30 published by data.ai for 5 consecutive months. Among them, SUGO's revenue and profit both increased more than 3 times year on year; TopTop's revenue increased more than 2 times, and profit increased more than 6 times. Furthermore, the monthly turnover of the company's flagship game “Alice's Dream: Merge Island” continued to grow, with an average monthly turnover of over $8 million in the fourth quarter.