Market Overview - The gaming sector experienced a decline of 0.23% on September 30, with G-bits leading the drop [1] - The Shanghai Composite Index closed at 3882.78, up 0.52%, while the Shenzhen Component Index closed at 13526.51, up 0.35% [1] Individual Stock Performance - Kunlun Wanwei (300418) saw a significant increase of 7.40%, closing at 48.59 with a trading volume of 1.2963 million shares and a transaction value of 6.222 billion [1] - ST Dazheng (600892) increased by 5.03%, closing at 4.18 with a trading volume of 168,400 shares [1] - G-bits (603444) led the decline with a drop of 3.43%, closing at 568.00 with a trading volume of 24,900 shares and a transaction value of 1.403 billion [2] Capital Flow Analysis - The gaming sector experienced a net outflow of 252 million from institutional investors, while retail investors saw a net inflow of 294 million [2] - Major stocks like Kunlun Wanwei and Starry Entertainment had varying net inflows and outflows from different investor types, indicating mixed investor sentiment [3] Notable Stock Movements - Starry Entertainment (300043) had a net inflow of 27.34 million from institutional investors but a net outflow of 49.14 million from retail investors [3] - The overall capital flow indicates a cautious approach from institutional investors while retail investors showed more activity in certain stocks [3]

Core Viewpoint - Sheng Tian Network's stock price has shown a significant increase this year, with a 26.60% rise, indicating strong market performance and investor interest [2]. Group 1: Stock Performance - On September 30, Sheng Tian Network's stock rose by 2.08%, reaching 14.23 CNY per share, with a trading volume of 92.38 million CNY and a turnover rate of 1.65% [1]. - The stock has increased by 5.02% over the last five trading days, 1.64% over the last 20 days, and 1.57% over the last 60 days [2]. Group 2: Financial Performance - For the first half of 2025, Sheng Tian Network reported a revenue of 633 million CNY, representing a year-on-year growth of 17.23%, and a net profit attributable to shareholders of 52.30 million CNY, which is a remarkable increase of 1186.02% [2]. Group 3: Business Overview - Sheng Tian Network, established on November 24, 2009, and listed on December 31, 2015, is primarily engaged in the design, development, promotion of internet entertainment platforms, and related advertising and value-added services [2]. - The company's revenue composition includes 78.71% from internet advertising and value-added services, 14.49% from game operations, 6.33% from IP operations, and 0.47% from other sources [2]. Group 4: Shareholder Information - As of June 30, 2025, the number of shareholders increased to 54,600, with an average of 7,297 circulating shares per person, a decrease of 2.23% from the previous period [2]. - The top ten circulating shareholders include various funds, with notable increases in holdings from several institutional investors [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].

Group 1 - The interactive short drama game sector is leading the market with an increase of 2.31% [1] - Kunlun Wanwei saw a significant rise of 8.24% [1] - Perfect World experienced a growth of 4.72% [1] - Sheng Tian Network increased by 4.04% [1] - Other companies such as Yanshan Technology, Huanrui Century, and Baiana Qicheng also saw gains exceeding 2% [1]

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]

Group 1: Game Approval and Market Trends - In September 2025, a total of 145 domestic online games were approved, including 93 mobile games, 42 mobile-casual puzzle games, 7 mobile-client games, 2 client games, and 1 mobile-web game [2] - The cumulative number of game licenses issued by the National Press and Publication Administration in 2025 has reached 1275, maintaining a high issuance frequency [2] - The regular issuance of game licenses reflects the regulatory support for the development of the gaming industry [2] Group 2: Company Performance and Financing - Kunlun Wanwei achieved a revenue of 3.733 billion yuan in the first half of 2025, a year-on-year increase of 49.23%, with ongoing optimization of AI game products [6] - Sanqi Interactive Entertainment reported a revenue of 8.486 billion yuan in the first half of 2025, a year-on-year decrease of 8.08%, but a net profit of 1.4 billion yuan, up 10.72% [6] - Financing net purchases for game stocks in September exceeded 1 billion yuan for three companies: Kunlun Wanwei (760 million yuan), Sanqi Interactive Entertainment (544 million yuan), and Giant Network (153 million yuan) [3] Group 3: Profitability and Growth - The net profit rankings for the first half of 2025 show ST Huatuo, Sanqi Interactive Entertainment, Kaiying Network, Giant Network, and G-bits leading with net profits of 2.656 billion yuan, 1.4 billion yuan, 950 million yuan, 777 million yuan, and 645 million yuan respectively [6] - Significant year-on-year net profit growth was observed in companies such as Shengtian Network (1186.02%), Youzu Network (989.31%), and Zhejiang Shuju Culture (156.26%) [7] - Kaiying Network's game "Black Cat Detective: Guardian" received approval in September, contributing to its overseas revenue of approximately 202 million yuan, a year-on-year increase of 59.57% [6]

Core Viewpoint - The stock of ShengTian Network has shown a mixed performance in recent trading sessions, with a year-to-date increase of 23.13% but a decline of 5.01% over the last five days, indicating volatility in its market performance [2]. Company Overview - ShengTian Network, established on November 24, 2009, and listed on December 31, 2015, is based in Wuhan, Hubei Province. The company specializes in the design, development, promotion of internet entertainment platforms, online advertising, internet value-added services, and game joint operations [2]. - The revenue composition of ShengTian Network includes 78.71% from online advertising and value-added services, 14.49% from game operations, 6.33% from IP operations, and 0.47% from other sources [2]. Financial Performance - For the first half of 2025, ShengTian Network reported a revenue of 633 million yuan, reflecting a year-on-year growth of 17.23%. The net profit attributable to shareholders was 52.30 million yuan, showing a significant increase of 1186.02% compared to the previous year [2]. - Since its A-share listing, ShengTian Network has distributed a total of 120 million yuan in dividends, with 40.23 million yuan distributed over the last three years [3]. Shareholder Structure - As of June 30, 2025, the number of shareholders of ShengTian Network increased to 54,600, with an average of 7,297 shares held per shareholder, a decrease of 2.23% from the previous period [2]. - The top ten circulating shareholders include notable funds such as HuaAn Media Internet Mixed A and HuaXia CSI Animation Game ETF, with significant increases in their holdings [4].

Core Viewpoint - The company is focusing on the development of a game based on the IP of "Dynasty Warriors 8," titled "Dynasty Warriors: The World," which is currently in a critical review phase and is expected to launch in the first half of 2026 [1] Group 1 - The company is actively advancing the development of the game "Dynasty Warriors: The World," which is a customized product based on "Dynasty Warriors 8" [1] - The development team is continuously enhancing the depth of the game content and plans to conduct multiple rounds of player testing to gather precise feedback [1] - The official launch of the game is anticipated in the first half of 2026 [1]

Group 1: Game IP Business - The company has achieved a multi-dimensional layout in the game IP sector, launching several adaptations such as "Three Kingdoms 2017" [1] - The project "True Three Kingdoms Warriors World" is currently in the critical review stage and is expected to launch in the first half of 2026, aiming to become a core growth point for the business [1] - The original IP "Star Wings" has performed exceptionally well overseas, with over 80% of revenue coming from international markets since its launch in Japan [1] Group 2: New Game Operations - The company is focusing on the adaptation of "True Three Kingdoms Warriors World," with plans for multiple rounds of player testing [2] - The original IP game "Magical Bopi," an innovative pet-catching idle game, is expected to launch across all platforms in 2025 [2] - The independent game "Heroic Legend" is set to launch in 2024 and has received positive feedback, with plans for ongoing updates [2] Group 3: AI Sector Development - Since 2021, the company has been building a comprehensive AI platform covering application, model, and infrastructure layers [3] - The launch of the AI-native music social app "Give Mic" and the AI virtual podcast feature demonstrates breakthroughs in multi-modal models [3] - The company is exploring AI applications for overseas markets, aiming to enhance its technological capabilities [3] Group 4: Online Entertainment Platform Business - The company is benefiting from the recovery of the PC online game market, leveraging its high market share in offline core scenes like internet cafes and esports hotels [4] - Significant growth in mobile advertising business is attributed to cross-platform advertising needs from PC game clients [4] - The company aims to deepen its role as a "scene ecosystem builder" by integrating online and offline resources [4]