May 14thCrashclashofthetitansThe game sector continued to be strong at midday, and game ETF (159869) is now up more than 2%. Among the holdings, Dasheng Culture (600892) and Caesar Culture (002425) (rights protection) rose by the daily limit, Zhongqingbao (300052) (rights protection) rose by more than 11%, Baotong Technology (300031) and Huali Technology rose by more than 7%, and the rest continued to rise. Only Light Media (300251) and Kunlun Wanwei (300418) fell slightly in intraday trading.

The domestic game industry is about to usher in a major event, Tencent WeGame annual conference "Game Night" will be held on May 19, when dozens of new works will be unveiled. It has been revealed that the popular domestic 3A masterpiece "Black Myth: Wukong" will be put on the Tencent WeGame platform on May 19 and will be pre-sold at a pre-sale price of 268 yuan. At the same time, 2024 NetEase Game 520 online launch announced the schedule for May 20, the games participating in the press conference include "Yanyun Sixteen Sound", "Firefly assault", "Marvel Ultimate reversal", "Bao Ke Meng Adventure", "Egg Party", "Lord of the Rings: strife" and so on.

Tianfeng Securities said that the market has relatively sufficient expectations for the dull 2024Q1 games. From 2024Q2, accompanied by: (1) head long-term game base return and operation for the better (including "Arena of Valor" and "BrawlStars", etc.); (2) heavyweight new games have been online (including "Dungeon & Fighter: Origin", "SquadBuster", etc.), it is expected that game business growth will enter the repair track, which leads to a rebound in income growth, and there is room for further improvement in short-term fundamental valuation constraints.