The Zhitong Finance App learned that yesterday, A-shares, Hong Kong stocks, and the US gaming sector surged. Among them, Tom Cat (300459.SZ) rose 20%, China Qingbao (300052.SZ) rose 14%, Bilibili-W (09626) rose more than 4%, and stocks such as NetEase (09999) and Tencent Holdings (00700) followed suit. The domestic game industry is about to usher in a major event. Tencent WeGame's annual press conference “Game Night” will soon be held, and various games such as the long-awaited domestic 3A blockbuster “Black Myths: Goku” will soon be released.

On May 13, Tencent WeGame's official blog announced that the annual press conference “Game Night” will start at 8 p.m. on May 19. This year's game night has dozens of new games ready to be seen, and will also bring first-hand exclusive news such as test nodes, launch times, and producer interviews.

According to the four official warm-up maps, there will be four new games corresponding to the themes of survival, action, empathy, and chivalry. They are expected to be “Path of Exile 2,” “Operation Delta,” “Operation Delta,” “Sound Tide,” and “World of Fairy Swords.”

Earlier, it was revealed that the popular domestic 3A blockbuster “Black Myths: Goku” will be released on the Tencent WeGame platform on May 19, and pre-sale will begin first. The pre-sale price is 268 yuan.

On the same day, NetEase Games also announced that the 2024 NetEase game 520 online press conference will be held at 19:30 on May 20. The games participating in the press conference include “16 Sounds of Yan Yun,” “Firefly Attack,” “Marvel's Ultimate Reversal,” “Pokémon Adventure,” “Egg Party,” and “Lord of the Rings: Dispute.”

In terms of the game market, in 2022, the global game market's revenue rebounded by 9%; in 2023, although the decline in revenue on the Google Play platform led to a 2% drop in overall internal purchase revenue, it showed a strong year-on-year recovery compared to 2022. Coupled with the continued launch of boutique games, it is beneficial to the development of the game industry.

According to the “2023 China Game Industry Report” published by Gamma Data, in 2023, the actual sales revenue of the Chinese game market was 302,964 billion yuan, up 13.95% year on year, breaking the 100 million yuan mark for the first time. Among them, mobile games were the core driving force for industry growth. Actual sales revenue was 226.860 billion yuan, an increase of 33.802 billion yuan, an increase of 17.51% year on year.

It is worth noting that on May 13, the US stock market once again witnessed a historic moment. Game Station (GME) experienced a sharp rise, and its stock price once soared by more than 110%. Behind the boom in GameStop's market, stands the super “cow loose” Keith Gill, who has led retail investors to successfully shake Wall Street.

In 2019, Keith Gill posted a post on the Reddit forum supporting GameStop and actually purchased GameStop bullish options with a position of about $53,000. In the days that followed, Keith Gill posted several times and livestreamed that Game Station was undervalued. Under his influence, many netizens also followed to buy Game Station or its bullish options. Under his influence, Game Station experienced a sharp rise after a long absence. The stock has accumulated a cumulative increase of about 180% over the past two trading days.

According to the Debon Securities Research Report, various games such as “The Sixteen Voices of Yan Yun” and “DNF Mobile Game” were scheduled for May, and they will continue to be optimistic about the opportunities brought by game section number releases, new product launches, overseas trips, and emotional healing.

Wanlian Securities said that in 2024, game editions will continue to be increased, high-quality and popular games from leading manufacturers will continue to be launched, overall expectations in the Chinese game market are improving, leading products in overseas markets are performing well, and overseas revenue from Chinese self-developed games is growing steadily. Overall, the game market is expected to show a growing trend. It is recommended to focus on leading companies with rich version reserves, strong R&D capabilities, and high-quality products.

The CITIC Construction Investment Research Report points out that they are optimistic about the recovery of the game industry's prosperity. There was a marked increase on the supply side of the edition. From January to March, the number of domestic editions broke through 100, and the number increased by 28% over the same period last year. In addition, various key new products were gradually launched in the second quarter. In addition, AI+ games have the opportunity to break through several pain points: in terms of cost reduction and efficiency, AI generation 3D technology tends to be mature+ usable, and is expected to achieve low cost/low latency 3D rendering from NERF models to 3DGaussian; in terms of new gameplay, AI+UGC companies are exploring. As long text capabilities improve, new track opportunities such as AI text reasoning and AI otome games are expected to be born. Judging from the stock price position, the gaming sector is clearly at a low level.

Related concept stocks:

Bilibili-W (09626): At the 2023 fourth quarter results meeting, the company said that game revenue in the fourth quarter increased 2% month-on-month to reach 1 billion yuan, with annual revenue of 4 billion yuan. Currently, 3 games in the company's pipeline have obtained domestic game versions, including the Japanese card game “Blazing Sky”, the domestic SLG game “Three Kingdoms: Determining the World”, and the domestic card game “Everything Is New.”

NetEase - S (09999): UBS pointed out in the research report that NetEase will publish 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.

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.