Sou Hu Cai Jing·2025-06-03 04:48Core Viewpoint - The gaming sector in A-shares has experienced a significant rally, driven by various factors including market sentiment, policy support, and valuation improvements [2][4]. Group 1: Market Performance - As of the latest update, several A-share gaming companies have seen substantial gains, with Zhangqu Technology rising by 13.15%, Giant Network by 7.06%, and G-bits by 6.57% [2]. - In the Hong Kong market, NetDragon increased by 6.68%, and Tencent Holdings also showed strength [3]. Group 2: Industry Growth - According to Gamma Data's report, the Chinese gaming market reached a size of 27.351 billion yuan in April 2025, marking a year-on-year growth of 21.93% and a month-on-month increase of 2.47% [4]. - The client game market specifically accounted for 5.799 billion yuan, with a month-on-month growth of 3.75% and a year-on-year growth of 2.78% [5]. - The mobile gaming market size was 20.424 billion yuan, showing a year-on-year increase of 28.41% and a month-on-month growth of 3.07% [5]. Group 3: Policy and Supply Improvements - The National Press and Publication Administration recently approved 130 domestic games and 14 imported games, signaling a continued friendly policy environment [5]. - By the end of May 2025, 654 domestic game licenses and 44 imported game licenses had been issued, significantly improving the supply side of the gaming industry [5]. Group 4: Valuation Insights - Analysts noted that the current dynamic PE for leading A-share gaming companies ranges from 11 to 17 times, which is still at historical low levels [5]. - The presence of high dividend yields among some leading companies suggests that the gaming sector may offer a compelling combination of growth and dividend potential [5]. Group 5: Technological Advancements - The rapid development of AI technology is seen as a crucial factor for cost reduction and efficiency improvement in the gaming industry, potentially enhancing long-term value [6]. - The integration of AI in gaming is expected to improve user experience and commercial viability, leading to a resurgence in sector growth [6].