Officially entering the summer season, I believe many gamers have already felt that the new game market is full of gunsmoke in May and June. Among the new games launched in May, there have already been explosive figures: according to the data of mobile games, Tencent's game IP-derived mobile game "Dungeons in Warriors: Origin" may have a turnover of more than 5 billion yuan in the first month. As of the end of May, the revenue of the domestic iOS market has surpassed the sum of "Honor of Kings" and "Peace Elite", making Tencent Games' mobile revenue increase by 12% in May. Since the launch of the "DNF Mobile Game" national server on May 21, it has basically maintained the No. 1 position on the iOS best-selling list.
Since the launch of XD's "Let's Go Muffin" national server on May 15, it has basically maintained the top 10 on the iOS best-selling list, according to Diandian's data, only the first month of iOS revenue is about 187 million yuan. Driven by "Let's Go Muffin", XD Network's revenue in May increased by 146% month-on-month, ranking 14th in China's mobile game publisher revenue list.
In addition, on June 13, since the launch of Bilibili's "Three Kingdoms: Conquering the World", it has basically maintained the top 5 on the iOS best-selling list, according to Diandian data, as of June 25, "Three Kingdoms: Conquering the World" has exceeded $23 million in revenue on iOS alone.
Major manufacturers have launched blockbuster masterpieces, and the performance of new games in the head is also really eye-catching, continuing to raise the overall turnover level of the game industry, and I believe that this summer will definitely bring considerable growth to the game industry.
Of course, the popularity of overseas markets also continued to soar in May, and Chinese mobile game manufacturers performed outstandingly. According to Sensor Tower data, in May 2024, a total of 40 Chinese manufacturers were shortlisted in the top 100 global mobile game publishers in terms of revenue, with a total revenue of US$2.11 billion, accounting for 39.7% of the global top 100 revenue. Overseas manufacturers and domestic dark horse products ignited market sentiment together, and at the same time, it also announced the official arrival of the white-hot competition stage of the mobile game market in the summer file.
On the 25th, the June edition number was officially issued, and a total of 104 new games obtained the edition number, specifically, including Tencent's "Rock Kingdom: World" (mobile, client); NetEase "Taiya Epic" (new mobile terminal); "Steam Fortress" (mobile); Gigabit "Daoyou Come to Dig Treasure" (mobile), "Ask Sword Immortality" (mobile); Sanqi Mutual Entertainment "Douluo Continent: Soul Hunting World" (mobile, client); Electric Soul Network "Age of Cultivating Immortals" (mobile, client), etc. In June, the number of games that passed the review returned to more than 100 in a single batch, and it only took half a year for some games to pass the review from soft to version number. At present, the total number of domestic online games issued throughout the year has reached 628. From January to June 2024, the number of domestic game versions is 115/111/107/95/96/104, and from January to June 2023, the number of domestic game versions is 87/87/86/86/86/89, respectively, and the number of versions in June this year has increased significantly year-on-year and month-on-month. The continuous issuance of game licenses, the increase in the number of game licenses, and the acquisition of blockbuster games may continue to enhance the confidence in the development of the game industry, stabilize the output of the industry, and the expectation of new game launches, which is expected to further boost the valuation of the game sector.
Of course, as we enter July and August, a large number of high-quality games will also meet us one after another. Games that have been scheduled to be launched include Tencent's Let's Create! Our Planet (launches June 26), Need for Speed: Assemble (July 11), Dawn of the Stars (launches in 2024); NetEase's "Seven Days World" (open beta on July 10), "Sixteen Voices of Yanyun" (public beta on July 26), "Naraka: Bladepoint Mobile Game" (online in 2024); Bilibili "Blazing Sky" (launched on July 17); miHoYo's "Jeopardy Zero" (launched on July 4) and so on. In addition, the highly anticipated first domestic triple-A console game "Black Myth: Wukong" will also be released on August 20. New tours have been launched one after another, which is expected to drive the growth rate of the industry.
Since the beginning of this year, almost all large technology companies have been fully engaged in the AI race, and the process of AI empowerment to promote the productivity improvement of the game industry is also accelerating. According to gamma statistics, China's game industry is facing challenges in many aspects, technological progress is the key to improving the productivity of the game industry, artificial intelligence game engine, virtual reality, network technology, graphics rendering, perception and interaction six key technological breakthroughs are expected to promote the development of the industry, nearly eighty percent of enterprises in artificial intelligence, digital twins, engine development, cloud technology and XR and other new productivity related fields layout. Nearly half of the leading game companies have used AI to improve productivity, build intelligent production pipelines, produce virtual content, and help users generate interactive content. Artificial intelligence is one of the main carriers of cutting-edge technological innovation, and the game industry has a deep symbiotic relationship with artificial intelligence technology, and artificial intelligence technology will become a key element of new quality productivity in the development of the game industry.
Guosheng Securities believes that in the long run, the logic of accelerating the development of the AI industry will continue to strengthen, and the improvement of the ability of domestic large models will further enhance the market's confidence in domestic AI applications, thereby continuously enhancing the market's confidence in the AI application industry.
In 2024, the domestic game industry will develop rapidly, the supply will be sufficient, and mobile, PC, and console will flourish, especially the head big IP products. Taking the CSI Animation & Game Index as an example, its current price-to-earnings ratio is 28x, which is around the 10% percentile of the past three years, and has returned to the position before the current wave of artificial intelligence. Whether it is from the supply side of the game version number or the cost side of the AI to empower the game industry to reduce costs and increase efficiency, the benefits for the game industry are objective, and the investment opportunities of game ETFs (159869) are worth paying attention to.
Game ETF (159869) is the largest game industry ETF in the whole market, tracking the animation game index focusing on the game industry segment leaders, mainly investing in listed companies whose main business involves animation, comics, games and other related subdivisions of the entertainment industry, reflecting the overall performance of A-share listed companies in the animation and game industry, with the top ten constituent shares weighing 69.93%, including Kunlun Wanwei, Century Huatong, Kaiying Network, Sanqi Mutual Entertainment and other A-share leading game companies, focusing on the game industry. High elasticity and high growth. Optimistic about the development of the game industry in 2024, you can pay attention to the largest game ETF in the whole market (159869, feeder fund 012768/012769).
The above views are for reference only, this material is only service information, not as a recommendation of individual stocks, does not constitute any substantive advice or commitment to investors, nor does it serve as any legal document. The market is risky, and investors need to be cautious. The results of CSI Animation & Game Index for the full fiscal year from 2018 to 2023 are: -41.25%, 20.34%, -12.58%, 1.11%, -32.88%, and 32.70%. The historical performance of the index is not indicative of the future performance of fund productsThis information is only service information, not as a recommendation of individual stocks, does not constitute a substantive recommendation or commitment to investors, and does not serve as any legal document.
Risk Warning: 1. The Fund and its feeder funds are equity funds, and their expected risks and returns are higher than those of hybrid, bond and money market funds, and the specific risk rating results are subject to the rating results provided by the fund manager and sales agencies. The feeder fund has unique risks such as feeder fund risk, tracking deviation risk, and risk of deviation from the performance of the target ETF. A one-time subscription fee will be charged when subscribing, and there is no sales service fee; There is no subscription fee for category C, but there is a sales service fee. There may be a big difference in the long-term performance of the two due to different fees and establishment times, etc., please refer to the product periodic report for details. 2. The risk level of the game ETF and its feeder fund is R4, the fund is an index fund, and its risk-return characteristics are similar to the risk-return characteristics of the securities market portfolio represented by the underlying index. The Fund closely tracks the underlying index and pursues tracking difference and tracking error minimization. 3. The Fund's main investment strategies include full replication strategy, alternative strategy, depositary receipt investment strategy, derivatives investment strategy, bond investment strategy, convertible bonds and exchangeable bonds investment strategy, asset-backed securities investment strategy, financing and refinancing securities lending business investment strategy, etc. 4. The rise or fall of the trading price of the fund in the secondary market does not represent the net value performance of the fund. This material is only service information, not as a recommendation of individual stocks, does not constitute any substantive advice or commitment to investors, nor does it serve as any legal document. Before investing in the Fund, investors should carefully read the Fund's "Fund Contract", "Prospectus" and "Product Key Facts Statement" and other legal documents of the Fund, fully understand the risk-return characteristics and product characteristics of the Fund, and fully consider their own risk tolerance according to their own investment objectives, investment period, investment experience, asset status and other factors, and make rational judgments and prudent investment decisions on the basis of understanding the product situation and sales suitability opinions, and independently assume investment risks. 5. The fund manager does not guarantee that the fund will be profitable, nor does it guarantee the minimum return. Past performance of the Fund and its net worth are not indicative of its future performance, and the performance of other funds managed by the Fund Manager does not constitute a guarantee of the performance of the Fund. 6. The fund manager reminds investors of the principle of "buyer's responsibility" in fund investment, and that investors are responsible for the investment risks caused by the operation of the fund, the fluctuation of the listing and trading price of fund shares and the change in the net value of the fund after the investor makes an investment decision. 7. The registration of the Fund by the China Securities Regulatory Commission does not indicate that it has made substantive judgments or guarantees on the investment value, market prospects and returns of the Fund, nor does it indicate that there is no risk in investing in the Fund. 8. This product is issued and managed by China Asset Management, and the agency does not assume the responsibility for the investment, redemption and risk management of the product. 9. This material is not intended as any legal document, and all information or opinions expressed in the material do not constitute investment, legal, accounting or tax final operation advice, and our company does not make any guarantee for the final operation advice on the content of the material. Under no circumstances shall the Company be liable to any person for any loss arising from the use of any content in this material.