CMSC: Stable Game License Issuance Expected to Boost Market Confidence, Maintains "Recommended" Rating for Gaming Sector

Stock News14:02

CMSC released a research report stating that on November 26, the National Press and Publication Administration (NPPA) approved 178 domestic game licenses and 6 imported game licenses. This year, both domestic and imported licenses have been issued stably and simultaneously each month. By November, a total of 1,532 domestic licenses and 92 imported licenses were granted, marking a significant increase compared to the same period in 2024. This trend is expected to bolster market confidence in the gaming industry.

The firm maintains a "Recommended" rating for the sector and remains optimistic about Tencent Holdings (00700) and Bilibili-W (09626), among others. Key highlights from CMSC's report include:

On November 26, the NPPA approved 178 domestic licenses (167 mobile, 7 mobile-client, 3 client, and 1 mobile-client-web) and 6 imported licenses (4 mobile, 1 mobile-client, and 1 client). Notable approved games from listed companies include: - **Kaiying Network**: *Ice and Snow King* - **Glacier Network**: *Little Guardians* - **Perfect World**: *Dream New Zhuxian: Lite Edition* - **Boke City**: *Naonao Adventure* and *Xianmeng Runaway Squad* - **Mango E-Game**: *Hello Saturday* - **4399 Network**: *Dream Journey: Liyou Cataclysm*

Additionally, seven games underwent approved revisions, including Tencent’s *Peacekeeper Elite*, which added a client version.

**Stable Issuance Frequency and Volume** Since 2025, domestic and imported licenses have been issued monthly in a stable manner. By November, the total issuance reached 1,532 domestic and 92 imported licenses, significantly higher than 2024 levels, signaling potential market recovery.

**Maintained "Recommended" Rating** CMSC highlights several growth drivers: - **Tencent Holdings**: 14 evergreen games with sustained profitability. - **Giant Network**: *Supernatural Action Team* exceeded expectations, with active AI adoption. - **Kaiying Network**: Incremental revenue from *Legend Box* and a robust license pipeline. - **Overseas Expansion**: - **ST Huatong**: *Whiteout Survival* continues record-breaking performance; *Kingshot* gains traction domestically. - **37 Interactive Entertainment**: New titles *Heroes Don’t Dodge* and *Time Big Bang* rank high; *Douluo Continent* enters public testing. - **Perfect World**: *Strange Ring* began second testing on June 26. - **G-bits**: Launches *Sword of Immortality*, *Legend of the Sword*, and *Taoist Treasure Digger*; *Nine Wilds* expected by year-end. - **XD Inc.**: Strong performance from *Tinkertown* and *Let’s Go Muffin*; *Iser* contributes incremental growth. - **Bilibili**: *Three Kingdoms: Strategic Conquest* excels, with overseas release planned; *Escape from Duckov* tops Steam charts. - **Shenzhou Taiyue**: Stable SLG revenue; new SLG game launched overseas; ICT business revaluation.

Other beneficiaries include **Baotong Technology** (robotics focus), **Ourpalm**, **Yaoji Technology** (card games), and **Dianhun Network**/**Glacier Network** (upcoming product cycles).

**Risks**: Potential delays in game launches or underperformance in revenue.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment