Huajin Securities: The number of licenses issued continues to break records, high-quality content and IPs drive the prosperity of the gaming industry.

(Huajin Securities) released a research report stating that the number of game approvals issued at the beginning of the year continued to break records, and the trend of multi-platform approvals continued, with cross-platform diversification helping to enhance the gaming ecosystem. The advantages of major companies combined with IP and content driving multiple cycles warrant attention to the upcoming new game release cycle. Recommended stocks to watch include: TENCENT (00700), NTES-S (09999), BILIBILI-W (09626), Zhejiang Jinke Tom Culture Industry (300459.SZ), 37 Interactive Entertainment Network Technology Group (002555.SZ), Kingnet Network (002517.SZ), Giant Network Group (002558.SZ), and others. Key points from Huajin Securities: Event: On January 21st, the National Press and Publication Administration released the approval information for domestic and imported online games for January 2025, with a total of 136 games receiving approvals, reaching a new high in recent years. Of these, 123 were domestic approvals and 13 were for imported games, with companies such as Tencent, NetEase, 37 Interactive Entertainment Network Technology Group, Thunder, and Kaiying included. The number of game approvals issued at the beginning of the year continued to break records, driven by high-quality content and IP, with a focus on the release cycle of major new games. The trend of multi-platform approvals continued, with cross-platform diversification helping to enhance the gaming ecosystem. Of the 123 domestic online games approved this time, 9 received approvals for both mobile and client-side platforms, and 2 received approvals for both mobile and web platforms. The imported online games received 13 approvals, with 3 games approved for both mobile and client-side platforms. The diversification of game approvals and multi-platform approvals continue to inject strong momentum into the gaming industry, enriching the supply-side ecosystem to meet the diverse needs of players. The number of game approvals reached a new high. The 123 domestic online games approved this time include Tencent's "King Glory World" (mobile and client-side), 37 Interactive Entertainment Network Technology Group's "Epic Continent", Yi Yu's "Ashes Fantasy", Kaiying (Publishing) "Blood Jianghu: Return" "Swordsman: Heroes", Glacier "Journey to the West", Thunder "Eternal Embers", Pok "Sea Monster Hunter", Four Three Nine "Adventure New Era", Starlight "Dream Monster Taming", CMGE "Three Thousand Fantasy World", Migu Game "Dream Farm" "Demon King Endgame", independent game studio fat pudding "Master Eye" etc. The 13 imported online games approved this time include NetEase Thunderfire "Ice and Steam Age: The Last Homeland", Thunder "Forest Campground", Tar Man "Ragnarok: Heart of the Beginning" and others. The record-breaking number of game approvals at the beginning of the year injects confidence into the gaming industry, helping promote the healthy development of domestic games. IP + content drive, focus on the release cycle of major new games and the performance of related company products. "King Glory World" made its first public appearance on the mobile platform at last year's Apple Fall Event, being used for iPhone 16 performance demonstrations, and was announced to be launched on the iOS ecosystem in 2025. This game is an open world RPG game under the "King of Glory" IP ecosystem, developed by Tencent Tiantian Studio's open world team, positioned as a high-quality 3A game, created using the Unreal Engine 5, supporting ray tracing and DLSS3 technology, and is expected to be launched on multiple platforms including mobile, PC, and consoles. In addition, NetEase Thunderfire's "Ice and Steam Age: The Last Homeland", Thunder's "Forest Campground", and other new games approved are all adaptations of well-known IP products. The approval of new games from leading companies, combined with high-quality IP + content, is expected to contribute to the prosperity of the gaming industry. Risk Warning: Policy volatility, lower-than-expected performance and popularity of game products, macroeconomic environment risks, etc.