2 1 Shi Ji Jing Ji Bao Dao·2025-07-01 10:45Core Insights - The A-share gaming sector has experienced a significant upward trend, with multiple stocks rising sharply and overall valuations recovering from last year's lows [1] - The gaming industry is expected to continue its growth trajectory into 2024, driven by positive earnings expectations and a dual push from policy and market competition, leading to a "Davis Double Play" moment for the sector [1][6] Supply and Demand Dynamics - The increase in the number of game approvals is a key reason for the optimistic outlook in the industry and capital markets, with a record 158 games approved in June 2025, the highest monthly total since 2002 [2] - The quality of game supply has not been diluted despite the increase in approvals, indicating a trend towards the production of high-quality games [3] - Government policies at both central and local levels are supporting the high-quality development of the gaming industry, enhancing the overall supply side [3][4] Revenue Growth and Market Sentiment - The gaming sector is witnessing stable revenue growth, with May 2025 revenues reaching 28.051 billion yuan, reflecting a month-on-month increase of 2.56% and a year-on-year increase of 9.86% [6] - The market is beginning to reassess the value and prospects of the gaming sector, with improved investor sentiment and a willingness to take risks in the gaming industry [6][8] Product Development Trends - The current year is characterized as a "small product year," with fewer flagship releases, yet the market continues to grow, indicating a shift towards mid-tier and light games [7] - The introduction of AI technologies is enhancing the competitiveness and profitability of mid-tier games, allowing for richer gameplay experiences with lower development costs [8] Future Outlook - The gaming sector is expected to remain a focal point in the capital market, with upcoming product launches anticipated to drive further interest and investment [8]