According to a research report from Goldman Sachs, the valuation of the mainland gaming companies covered by the firm is currently near the lower end of its historical range over the past five years. However, mainland game publishers demonstrated resilience in the first quarter of this year, with combined domestic revenue increasing by 13% year-over-year and overseas sales rising by 32% year-over-year. As the market enters its peak season, multiple new game releases are expected to sustain strong momentum.

In terms of individual stocks, the firm holds a positive view on Bilibili (09626), anticipating that increased advertising budgets for games in the second and third quarters will drive robust advertising revenue performance. Bilibili's game "Three Kingdoms: Hundred Generals" is expected to achieve broad user engagement. For NetEase (09999), new game releases and growth are projected to reaccelerate starting in the second quarter. As for Tencent Holdings (00700), strong domestic franchise performance and contributions from multiple new titles are expected to lead to double-digit year-over-year growth in gaming revenue for both the first quarter and the full year. Regarding new games from Perfect World Co.,Ltd. (002624) and XD INC (02400), the firm believes more feedback and data are needed to assess their sustainability.