CMSC released a research report stating that on November 26, the National Press and Publication Administration (NPPA) approved 178 domestic game licenses and 6 imported game licenses. This year, both domestic and imported licenses have been issued stably and simultaneously each month. By November, a total of 1,532 domestic licenses and 92 imported licenses were granted, marking a significant increase compared to the same period in 2024. This trend is expected to bolster market confidence in the gaming industry.
The firm maintains a "Recommended" rating for the sector and remains optimistic about Tencent Holdings (00700) and Bilibili-W (09626), among others. Key highlights from CMSC's report include:
On November 26, the NPPA approved 178 domestic licenses (167 mobile, 7 mobile-client, 3 client, and 1 mobile-client-web) and 6 imported licenses (4 mobile, 1 mobile-client, and 1 client). Notable approved games from listed companies include: - **Kaiying Network**: *Ice and Snow King* - **Glacier Network**: *Little Guardians* - **Perfect World**: *Dream New Zhuxian: Lite Edition* - **Boke City**: *Naonao Adventure* and *Xianmeng Runaway Squad* - **Mango E-Game**: *Hello Saturday* - **4399 Network**: *Dream Journey: Liyou Cataclysm*
Additionally, seven games underwent approved revisions, including Tencent’s *Peacekeeper Elite*, which added a client version.
**Stable Issuance Frequency and Volume** Since 2025, domestic and imported licenses have been issued monthly in a stable manner. By November, the total issuance reached 1,532 domestic and 92 imported licenses, significantly higher than 2024 levels, signaling potential market recovery.
**Maintained "Recommended" Rating** CMSC highlights several growth drivers: - **Tencent Holdings**: 14 evergreen games with sustained profitability. - **Giant Network**: *Supernatural Action Team* exceeded expectations, with active AI adoption. - **Kaiying Network**: Incremental revenue from *Legend Box* and a robust license pipeline. - **Overseas Expansion**: - **ST Huatong**: *Whiteout Survival* continues record-breaking performance; *Kingshot* gains traction domestically. - **37 Interactive Entertainment**: New titles *Heroes Don’t Dodge* and *Time Big Bang* rank high; *Douluo Continent* enters public testing. - **Perfect World**: *Strange Ring* began second testing on June 26. - **G-bits**: Launches *Sword of Immortality*, *Legend of the Sword*, and *Taoist Treasure Digger*; *Nine Wilds* expected by year-end. - **XD Inc.**: Strong performance from *Tinkertown* and *Let’s Go Muffin*; *Iser* contributes incremental growth. - **Bilibili**: *Three Kingdoms: Strategic Conquest* excels, with overseas release planned; *Escape from Duckov* tops Steam charts. - **Shenzhou Taiyue**: Stable SLG revenue; new SLG game launched overseas; ICT business revaluation.
Other beneficiaries include **Baotong Technology** (robotics focus), **Ourpalm**, **Yaoji Technology** (card games), and **Dianhun Network**/**Glacier Network** (upcoming product cycles).
**Risks**: Potential delays in game launches or underperformance in revenue.