The mid-year exam results of gaming stocks are divided, who can break through the strong product cycle?

The "Black Myth: Wukong", which took seven years to develop, exploded onto the scene the moment it was released. Since the game went online, global sales have exceeded tens of millions within a few days, attracting attention and money with its hardcore style. At the same time, media outlets such as "Xinhua News Agency", "People's Daily", and "CCTV News" have mentioned its positive role in promoting traditional culture. The outstanding performance of "Black Myth: Wukong" has not only boosted the confidence of players in domestic games, but also injected a strong stimulant into the gaming sector that has been in a weak operation for a long time. It is noted that due to the impact of "Black Myth: Wukong", the attention to the gaming sector in the secondary market has significantly increased, especially with frequent abnormal movements in related assets. In early September, the interim reports of listed companies have been mostly disclosed. This may be a good opportunity for investors to reevaluate the investment value of gaming stocks. Observing the Hong Kong stock market, long-term analysis shows that the gaming sector has undergone a long adjustment period, with the sector currently showing low valuation and low base characteristics. In terms of interim reports, many companies have delivered impressive results, such as IGG (00799) with a net profit of over 300 million Hong Kong dollars in the first half of the year, and also announcing an interim dividend of 8.5 Hong Kong cents per share, exceeding market expectations. However, there are mixed results as well, with ZENGAME (02660) experiencing a double-digit decline in revenue and profit in the first half of the year, and HOMELAND ITL (03798) seeing a more than 90% year-on-year decline in net profit. Against the backdrop of improving policy conditions, the emergence of blockbuster works undoubtedly serves as a catalyst for the sector. But considering the interim reports, the fundamentals of the gaming industry are still highly differentiated, and investors may need to carefully select stocks to achieve excess returns. Mixed performance in interim reports For the gaming industry that has been dormant for a long time, the past year has been probably not easy. According to the data from the Game Work Committee, since September 2023, the scale of the domestic gaming market has experienced a significant decline, from 292.26 billion in August 2023 to a low of 224.32 billion in April 2024. In the process of the overall decline in industry scale, the performance pressures of related companies cannot be underestimated. However, a glance at the financial reports of Hong Kong gaming stocks reveals a considerable disparity in performance among them. Take XD INC for example, thanks to the good market feedback on multiple newly developed games, the company's average monthly active users for online games in the first half of the year was 9.53 mi...The current position has preliminary investment value. However, it is also important to note that, as the current residents' consumption power still needs further improvement, the quality of the game industry's recovery also needs to be observed. In this context, perhaps only strong performance can solidify the foundation for stock price rebound. Therefore, investors will focus on game companies with better-than-expected performance or abundant reserves for a more prudent choice.Je suis dsol, je ne comprends pas.