Huatai Securities: Domestic gaming market size is steadily growing, focusing on three main themes.

Huatai Securities research report stated that, according to the Game Committee, the actual sales revenue of the domestic gaming market is expected to reach 350.789 billion yuan in 2025, a year-on-year increase of 7.68%; the user scale will exceed 683 million, a year-on-year increase of 1.35%. The growth of the gaming market size is mainly driven by the increase in user ARPU. For the gaming sector, it is recommended to focus on three main themes: 1) long-term operation + overseas SLG/strategy leaders; 2) targets with new product cycles and expected inflection points in cost ratios; 3) companies transitioning their business model from products to platforms. Also pay attention to AI-enabled gaming innovation in gameplay.