Market Overview - On September 26, the gaming sector experienced a decline of 4.11%, with G-bits leading the drop [1] - The Shanghai Composite Index closed at 3828.11, down 0.65%, while the Shenzhen Component Index closed at 13209.0, down 1.76% [1] Individual Stock Performance - G-bits (603444) saw a significant drop of 10.00%, closing at 595.81, with a trading volume of 21,200 shares and a transaction value of 1.303 billion [2] - Other notable declines included Kunlun Wanwei (300418) down 7.48%, Xinghui Entertainment (300043) down 7.40%, and Shenzhou Taiyue (300002) down 6.05% [2] - Perfect World (002624) and Giant Network (002558) also faced declines of 2.84% and 2.09%, respectively, with transaction values of 1.089 billion and 1.468 billion [1][2] Capital Flow Analysis - The gaming sector experienced a net outflow of 2.233 billion from main funds, while retail investors saw a net inflow of 1.505 billion [2] - The table of capital flow indicates that Perfect World had a net inflow of 65.52 million from main funds, while Giant Network had a net inflow of 47.98 million [3] - Conversely, ST Zhongqingbao (300052) and Fuchun Co. (300299) experienced significant net outflows of 10.86 million and 14.02 million from main funds, respectively [3]

Investment Rating - The report maintains a positive investment rating for the gaming sector, specifically recommending companies like Giant Network, Tencent, and others in the industry [2][7]. Core Insights - The gaming sector is expected to benefit significantly from supportive policies and emerging AI applications, with the third-quarter reports anticipated to show strong performance [7]. - Giant Network is highlighted for its steady revenue and profit growth, with new product launches expected to contribute positively in future reporting periods [7]. - The report emphasizes the resilience of the gaming industry amidst economic fluctuations, positioning it as a promising area for investment [7]. Summary by Sections Industry Overview - The media industry saw a 0.69% increase last week, ranking 10th among all sectors, with a year-to-date increase of 37.23%, placing it 4th overall [11]. - The gaming sector, particularly leading companies like ST Huatuo and Giant Network, reached new highs, prompting recommendations to increase holdings in this area [7]. Company Performance - Giant Network's revenue and profit are steadily increasing, with a significant rise in contract liabilities, indicating growth in deferred revenue from games [7]. - The flagship mobile game "Original Journey" has successfully expanded its user base, achieving over 2 million new users in the first half of the year [7]. - The company is actively integrating AI technologies into its gaming products, enhancing user engagement and gameplay experiences [7]. Market Data - The report notes that the gaming sector's valuation remains attractive, with a strong outlook for international expansion and AI integration [7]. - The gaming industry is characterized as one of the most benefited sectors from current market conditions and policy support [7].

Group 1 - The China Securities Index for online consumption (931481) decreased by 1.85% as of September 26, 2025, with mixed performance among constituent stocks [1] - Wanrun Technology (002654) led the gains with an increase of 3.46%, while Jibite (603444) experienced the largest decline at 6.81% [1] - The online consumption ETF (159793) fell by 1.71%, with the latest price at 1.15 yuan, but showed a 2.19% increase over the past week [1] Group 2 - As of August 29, 2025, the top ten weighted stocks in the online consumption index accounted for 51.84% of the total index weight [2] - Tencent Holdings (00700) holds the highest weight at 9.65%, followed by Alibaba-W (09988) at 9.25% and Meituan-W (03690) at 8.37% [4] - Other notable stocks include Kuaishou-W (01024) at 6.05% and JD Health (06618) at 3.98% [4]

Core Insights - The article highlights the stable approval process for domestic game licenses in China, with a significant increase in the number of licenses issued in 2025 compared to the previous year [1][3] - The gaming market in August 2025 showed stable performance, with notable revenue contributions from high-quality products, indicating a positive outlook for game development companies [2][3] Group 1: License Approval and Supply - On September 24, 2025, the National Press and Publication Administration approved 145 domestic games and 11 imported games, indicating a robust supply of game licenses [1] - The total number of domestic game licenses issued in 2025 has reached 1,195, significantly higher than the 959 licenses issued in the same period last year, with an average monthly issuance of 132.8 licenses [1] Group 2: Market Performance - In August 2025, the domestic gaming market generated revenue of 29.263 billion yuan, reflecting a month-on-month growth of 0.61% but a year-on-year decline of 13.01% due to a high base from the previous year [2] - Mobile game revenue was 21.521 billion yuan, with a month-on-month increase of 0.85% and a year-on-year decrease of 4.25%, while client game revenue was 6.563 billion yuan, showing a month-on-month decline of 1.11% but a year-on-year increase of 17.59% [2] Group 3: Investment Outlook - The stable approval rhythm for game licenses and the rich supply of game products lead to a favorable investment outlook for companies with strong content reserves and solid fundamentals [3]

Core Viewpoint - The gaming sector in A-shares has seen significant gains following the approval of multiple domestic and imported game licenses, indicating a positive trend for the industry [1][3]. Group 1: Market Performance - On September 25, several gaming stocks surged over 5%, including Kunlun Wanwei (300418.SZ), Icefire Network (300533.SZ), and Gigabit (603444.SH) [1]. - The gaming sector's valuation recovery is attributed to various factors, including the continuous issuance of game licenses, with 145 domestic games and 11 imported games approved recently [1][3]. - As of September 25, 2025, the A-share gaming sector comprises 24 listed companies, with some stocks achieving remarkable performance this year [7][8]. Group 2: Regulatory Environment - The National Press and Publication Administration has approved a total of 1,275 games in 2025, significantly higher than the 959 games approved in the same period last year, with an average monthly issuance increasing from 88.8 in 2023 to 132.8 in 2025 [3]. Group 3: Financial Performance - The domestic gaming market's actual sales revenue reached 168 billion yuan in the first half of 2025, marking a 14.08% year-on-year increase, setting a historical record [5]. - The A-share gaming sector reported a 22.8% year-on-year revenue growth in the first half of 2025, indicating a strong industry fundamental [5]. Group 4: Company Highlights - ST Huatuo's stock price has increased over 300% this year, making it the highest market cap company in the A-share media sector, with a total market value exceeding 160 billion yuan [9]. - Gigabit's stock rose by 5.67%, with a market value of approximately 47.69 billion yuan, and the company reported a 28.49% year-on-year revenue growth in the first half of 2025 [10][11].

Group 1 - The mobile gaming sector saw an increase of 1.15%, ranking 6th among concept sectors, with 38 stocks rising, including ST Huatuo which hit the daily limit, and Mango Super Media, Kunlun Wanwei, and Ice River Network showing significant gains of 8.47%, 7.40%, and 6.92% respectively [1][2] - The mobile gaming sector attracted a net inflow of 0.54 billion yuan from major funds, with 25 stocks receiving net inflows, and 5 stocks exceeding 0.1 billion yuan in net inflow, led by Giant Network with 1.48 billion yuan [2][3] - The top stocks by net inflow ratio included Xunyou Technology, Shunwang Technology, and Dihun Network, with net inflow ratios of 10.53%, 8.51%, and 8.31% respectively [3][4] Group 2 - The top gainers in the mobile gaming sector included Giant Network, ST Huatuo, and Xinghui Entertainment, with daily price increases of 1.29%, 5.02%, and 5.08% respectively [3][4] - The overall market performance showed a mixed trend, with the Chinese AI sector leading with a 2.36% increase, while the South Korea-China Free Trade Zone concept fell by 1.87% [2] - The trading volume and turnover rates for key stocks in the mobile gaming sector indicated active trading, with notable turnover rates for stocks like Xinghui Entertainment at 21.40% [3][4]

Core Viewpoint - The gaming industry in China is experiencing a significant increase in the issuance of domestic game licenses, with a total of 1,195 licenses granted in the first nine months of the year, surpassing the 959 licenses issued during the same period last year [1][3]. Group 1: License Issuance - In September, 145 domestic games were approved, contributing to a total of 1,195 domestic licenses issued this year, which is significantly higher than the 959 licenses issued in the same period last year [1][3]. - The average monthly issuance of licenses has increased from 88.8 in 2023 and 108.8 in 2024 to 132.8 in the first nine months of this year [1][3]. Group 2: Market Performance - The gaming market in August recorded a revenue of 29.263 billion yuan, showing a month-on-month growth of 0.61%, although it experienced a year-on-year decline of 13.01% due to high revenue from a major game in the previous year [4]. - Mobile game revenue reached 21.521 billion yuan, with a month-on-month increase of 0.85% and a year-on-year decline of 4.25%, while client game revenue was 6.563 billion yuan, showing a month-on-month decrease of 1.11% but a year-on-year increase of 17.59% [4]. Group 3: Key Products and Companies - Tencent's game "Delta Action" saw its daily active users rise to 30 million in September, topping the iOS sales chart, indicating strong profit contributions [4]. - The new game "Valorant: Energy Action" is expected to generate over 300 million yuan in its first month [4]. - Companies such as Tencent, NetEase, and Giant Network are highlighted for their strong product performance and market presence [4][5].

Investment Rating - The report assigns an "Increase" rating for the gaming industry, indicating a positive outlook compared to the CSI 300 index, with expected growth exceeding 15% [13]. Core Insights - In September, a total of 145 domestic games received approval, contributing to a total of 1,195 domestic game licenses issued this year, significantly higher than the 959 licenses issued in the same period last year [6][8]. - The gaming market in August showed stability, with a total revenue of 29.263 billion yuan, reflecting a month-on-month growth of 0.61% but a year-on-year decline of 13.01% [6][8]. - The report highlights the strong performance of leading products, such as Tencent's "Delta Action," which reached 30 million daily active users in September, and the anticipated revenue of over 300 million yuan for the new game "Valorant: Energy Action" in its first month [6][8]. Summary by Sections Game License Approvals - In September, 145 domestic games and 11 imported games received approval, with notable titles from Tencent, NetEase, and others included in the list [6][8]. - The approval rate for domestic game licenses has increased, with an average monthly issuance of 132.8 licenses in 2023, up from 88.8 in 2021 and 108.8 in 2022 [6][8]. Market Performance - The gaming market's revenue for August was 29.263 billion yuan, with mobile games generating 21.521 billion yuan and client games 6.563 billion yuan [6][8]. - The report notes that client games are experiencing growth due to cross-platform products, which enhances their profitability compared to mobile games [6][8]. Investment Recommendations - The report recommends companies with strong content reserves and solid fundamentals, including Kain Network, 37 Interactive Entertainment, Giant Network, Perfect World, and others [6][8]. - Specific stock recommendations include Kain Network (28.94 yuan), 37 Interactive Entertainment (22.49 yuan), and Giant Network (44.87 yuan), all rated for "Increase" [7][8].

Core Viewpoint - The article highlights the approval of 145 domestic online games in September 2025, indicating a supportive regulatory environment for the gaming industry in China, with a total of 1,275 game licenses issued so far this year [3][4]. Game Approval Summary - In September, 145 domestic online games were approved, including 93 mobile games, 42 mobile-casual games, 7 mobile-client games, 2 client games, and 1 mobile-web game [3]. - Additionally, 11 imported online games were approved, with 6 being mobile games [3]. Financing and Investment Insights - The article lists game stocks with significant net purchases by financing clients in September, with three stocks exceeding 100 million yuan in net purchases: Kunlun Wanwei (760 million yuan), Sanqi Huayu (544 million yuan), and Giant Network (153 million yuan) [5]. Company Performance Overview - Kunlun Wanwei reported a revenue of 3.733 billion yuan in the first half of the year, a year-on-year increase of 49.23%, focusing on AI game product optimization [7]. - Sanqi Huayu achieved a revenue of 8.486 billion yuan, a year-on-year decrease of 8.08%, but its net profit increased by 10.72% to 1.4 billion yuan [7]. - Key games in the pipeline for Sanqi Huayu include several titles under development, indicating a strategy for diversified gaming experiences [7]. Profitability Rankings - The top companies by net profit in the first half of the year include ST Huatuo (2.656 billion yuan), Sanqi Huayu (1.4 billion yuan), and Kaiying Network (950 million yuan) [8][9]. - Notably, ST Huatuo experienced a significant year-on-year profit increase of 129.33% [10]. Profit Growth Analysis - Companies like Sheng Tian Network and Youzu Network showed remarkable profit growth, with increases of 1186.02% and 989.31% respectively, while others like Perfect World and Glacier Network turned losses into profits [10].

Group 1 - The gaming sector is experiencing a significant rise, with the gaming ETF (159869) increasing nearly 3% in early trading, and notable stocks such as Glacier Network, Perfect World, and Star Shine Entertainment showing strong gains [1] - In September, a total of 156 games were approved, including 145 domestic and 11 imported titles, marking the third month this year with over 150 game approvals [1] - Open Source Securities suggests that the current gaming industry cycle may exceed market expectations due to supply-demand resonance, and recommends increasing investments in the gaming sector [1] Group 2 - The gaming sector is undergoing multiple catalysts including AI, content, and commercialization model transformations, with the gaming ETF (159869) tracking the performance of A-share listed companies in the animation and gaming industry [2] - Citic Construction Investment is optimistic about the gaming sector's performance for the year, highlighting that the overall gaming landscape is improving, with leading companies like Tencent and mid-sized firms performing well [1][2]