During the Spring Festival this year, the introduction of the “Chinese New Year on the spot” policy is undoubtedly good news for the “home economy”. For example, during the 7th Spring Festival, the estimated turnover of “Honor of Kings” and “Peace Elite” iOS both exceeded 150 million, which once again proved the game industry’s strong gold attracting power.
Many public equity funds have also seized the time to capture game stocks. Just before the Spring Festival, the game ETF established by the three fund companies of China Huaxia, Cathay Pacific, and Huatai Bai Rui was officially approved. They are China Securities Animation Game ETF and Cathay Pacific China Securities. For the animation game ETF and the Huatai Bairui CSI animation game ETF, the proposed fund managers for the three products are Xu Meng, Xu Chengcheng and Li Qian respectively.
It is understood that these three ETF products are all based on the CSI Animation Game Index. The CSI Animation Game Index selects stocks of listed companies whose main business involves animation, comics, games and other related sub-entertainment industries as sample stocks, reflecting animation The overall performance of A-share listed companies in the game industry.
As of February 19, the top ten heavyweight stocks in the CSI Animation Game Index covered companies such as Kunlun Wanwei, Palm Fun Technology, and Guangguang Media. Shenzhou Taiyue (the parent company of Shellwood Software) was also on the list, and the top three The heavyweights are Sanqi Mutual Entertainment (14.30%), Perfect World (10.68%) and Century Huatong (9.11%).
The products of some companies in the chart have performed well recently. Take Sanqi Mutual Entertainment as an example. According to the Top 30 China Mobile Games Revenue List released by Sensor Tower in January, the company’s “Jiangshan Beauty” and “Puzzles & Survival” are both Successfully shortlisted, among which “Puzzles & Survival” is the new top 30 in revenue; Gigabit’s new game “One Thought Happy” frequently hits the top 10 of China’s iOS game bestseller list, and the reserve product “Moore Manor” is worth looking forward to; Shenzhou Taiyue The SLG game “Age of Z”, a subsidiary of the game subsidiary Shellwood Software, has long been in the top 30 of China’s mobile game overseas revenue list.
The choice of public funds to establish a game ETF at this time may be related to the fact that the valuation of the game sector has fallen to a low level. Since August 2020, the share price of A-share game stocks has fallen sharply. As of the end of 2020, Century Huatong’s share price has more than halved from the high this year. Under market doubts such as “unsustainable buying model” and “lower-than-expected performance growth in the first quarter of 2021”, the trend of the A-share game sector at the end of 2020 was quite sluggish.
Seeing the poor performance of leading stocks, the trend of the CSI Animation Game Index is also relatively sluggish. Industrial Securities pointed out that after the CSI Animation Game Index has experienced a long-term correction, the current index position is at an extremely low position since the base period, and the index valuation level is also at a low position since its release.
Xu Chengcheng, the proposed fund manager of Cathay Pacific Games ETF, said that China’s mobile game market has a large development space and a large market share. The growth rate will reach 32% in 2020, which is higher than 20% of the entire game industry. The current valuation of the game industry The number is already at a relatively low point (less than 20%); on the other hand, due to the epidemic last year, many companies have postponed the release of game works and postponed to this year. It is expected that the second quarter of this year will usher in a wave of product-driven market, so 2021 The year will be a year of higher flexibility for the entire industry, and the entire industry can usher in better development in terms of performance growth and valuation, forming Davis Double-click.
From the sharp drop in stock prices at the end of 2020 to the rush to issue game ETFs at the beginning of 2021, many institutions said that “the turning point of the game industry has reached” during the year, superimposing the official release of a number of blockbuster games before the Spring Festival, and after the start of 2021 The trend of the game sector must be worth looking forward to.
Source: Something about mobile games