I wanted to talk to you about the investment opportunities of game stocks last weekend, but I didn't have time to write about it temporarily, because I also laid out two game stocks last week, and at the same time, ChinaAMC's ** game ETF (SZ: 159869) is the index I have been holding since the beginning of this year.
Because some time ago, there wasn't a "It's over!".I'm surrounded by beautiful women!The game is very popular, and the internal push is a game of real interactive images, but the direction of market hype is a short drama, in fact, its main monetization logic is still based on the logic of the game, and with a series of operations such as Douyin and other third-party delivery requirements become stricter, I think the investment opportunities of the head game company have increased by another point, focusing on the following reasons:
1. AICG's most commercialized scenario is the game
Some time ago, the capital ** was asked when he was surveyed by an institution".In which industry does the company think AIGC technology will explode first?"Say, the company believesThe gaming industry is expected to be one of the first to explode. At present, there is a relatively clear business logic, that is, through the model of "AI assistance + manual processing", it is gradually used in the game production process to reduce the labor cost investment of the original artist, so that enterprises can invest funds in the research and development of new productsAt the same time, on the game experience side, AIGC will make further innovations in scene and content interaction through interactive innovation.
Including at this year's 2023 World Artificial Intelligence Conference, experts at the forum believe that the combination of AI and games is also regarded as one of the scenarios for faster commercialization, and is becoming an important direction for the future development of game manufacturers such as Tencent, NetEase, and miHoYo.
The first is to reduce costs and increase efficiencyThe game industry is a highly creative and artistic industry, which requires a large number of art, copywriting and other resources, and AI technology can automatically generate the core element resources of the game in batches, such as copywriting, sound effects, drawings, etc., thus greatly reducing the cost of game development. In addition, AI can also assist in game testing, automatically identifying bugs and bugs in the game, further reducing the cost of game development.
The second is the improvement of the game experienceAIGC technology can improve the interactivity and experience of games through intelligent NPCs and human-computer interaction, and AI can simulate real human behavior, making the characters in the game more vivid and interesting, and making the game more intelligent. AI can also provide players with a more personalized gaming experience by analyzing players' behavior and preferences, increasing players' stickiness to the game, thereby improving the game's payment rate and ARPPU.
Second, the emergence of popular games is in line with the changes in the current environment
Everyone also knows that the epidemic has been around for three years, even if you are not a homebody, you will be trained by the environment to be a homesick person, and in those three years, everyone is more intelligent to stay at home to seek various entertainment activities, so it is also homeopathic to give birth to Douyin, short **, games and other popular products, games as a way to provide entertainment and relaxation, naturally welcomed by many people, you can take a look at the performance of "Glory of Kings" in those three years, that is really called a brilliant.
Including the recently popular "It's Over!I'm surrounded by beautiful women!"It is in line with the situation of young people now,For many otaku dicks,The environment is not good and it becomes difficult to find a partner,It's better to spend dozens of dollars to experience the feeling of being surrounded by beautiful women,And this person is an interactive game,Novel gameplayćInteresting,It can attract the attention of players,The beautiful characters and unique game experience in the game also provide players with a good entertainment effect,"Finished!I'm surrounded by beautiful women!The success of the book is largely due to its characteristics in line with the current environment and market demand, as well as the developer's effective marketing strategy and the attractiveness of the product itself.
In a tall word, the current environment is the "home economy", many people are through the online platform ** movies, TV series, animation, etc., but also gave birth to the rise of online literature, online ** and other online cultural forms, these fields provide more business opportunities, such as content creation, copyright operation, online performances, etc., but also provide more business opportunities for short ** creation, such as content creation, live broadcasting, Advertising and other influencers have given birth to a large number of Internet celebrities, and such an environment has promoted the increase of online cultural consumption.
3. The emergence of the popular AI product PIKA has driven AICG** to soar
In the past two days, Xinyada has rushed to the hot search, and the limit has risen for two consecutive days, but I didn't expect the source of the outbreak to be Guo Wenjing, the daughter of the boss of Xinyada, who made a ** artificial intelligence editing software pika in the United States to blow up overseas social networking**. Although the company has clarified, the shareholders of A-shares don't care, because of the attention and emotional premium, so it has risen for two days, and it has also been ridiculed by netizens as the first daughter concept stock in the history of Big A!
PIKA is a Silicon Valley-based AI startup focused on Wensheng technology, which has recently attracted a lot of attention for its unique technology application and has become a rising star in the field of artificial intelligence. pika's main product is a product called "pika 1."0" Wensheng ** production tool, users only need to enter text or upload images, you can generate**, the product also supports real-time editing and modification**, as well as adding various materials, such as sunglasses, clothes, etc. Due to its ease of use and innovation, Pika has attracted more than 160,000 users to its Discord server, and the number of users has reached around 500,000.
So back to this Friday's market, the domestic artificial intelligence AICG broke out sharply, in the field of AIGC, A-share listed companies do better is Kunlun Wanwei and Wanxing Technology, both of which are 20cm daily limit, just Kunlun Wanwei officially released the Tiangong Skyagents platform on December 1. Kunlun Wanwei said that on the Tiangong SkyAgents platform, users can deploy their own AI Agents within a few minutes through natural language and simple operation, without ** programming, and complete industry research reports, document filling, trademark design, and even fitness plans, travel flight bookings and other private customization needs.
Among the top game companies in the A-share market, many of them, like Kunlun Wanwei, have both game and AI-related businesses, so these companies will soar game ETFs (SZ:159869) and will also rise sharply!
Fourth, the outbreak of short dramas, the direction of entertainment media is also a big opportunity
Some time ago, short dramas exploded, in fact, they are inseparable from the head game companies of A-shares, because most of the game companies have also laid out film and television-related businesses, such as: Perfect World, Sanqi Mutual Entertainment, Youzu Network and other companies have laid out related film and television businesses, and at the same time, with the stricter requirements of third-party delivery such as Douyin, the head qualified game companies may be more likely to produce explosive short dramas, but if you are more optimistic about the direction of short dramas and entertainment media, you can also lay out the entertainment media ETF (SH) of Huaxia** : 516190), Entertainment Media ETF (516190) is the only on-exchange ETF that tracks the CSI Entertainment Media Index, involving **, live streaming, games, movies, digital publishing, digital marketing and other related businesses to reflect the overall performance of the culture, entertainment and media theme sectors.
China Merchants believes that from the perspective of performance and valuation, the media sector has entered a very safe range. Recently, the average valuation of the publishing industry is generally about 11 times, the valuation of leading game companies is about 18 times (Sanqi Mutual Entertainment is only 15 times), and Focus Media is less than 20 times under such high performance growth. The film and television sector has also slowly entered the Lunar New Year and Spring Festival files, and the three quarterly reports are relatively good, so the media sector as a whole is already in a relatively safe range, and the space is expected to be limited. In addition, the AI wave and the VR wave are expected to resonate in the later stage, which is good for the media content sector.
5. No matter which AI, game or short drama is popular, game ETF can be standard
As mentioned earlier, in the field of games and cultural entertainment, AI technology will be the first to be applied, which can greatly reduce the cost of creation and improve the efficiency of creation, and then many domestic game companies, Kunlun Wanwei, Sanqi Mutual Entertainment, Perfect World, Gigabit, Century Huatong, etc., are the beneficiaries of this AI technology revolution, and the profitability of the game company itself has always been very good, and there is no need to worry too much about performance.
Overall, the game sector is currently a multi-positive superposition, and the three factors of AI industry development trend, game version policy easing environment, and game fundamentals recovery are expected to support the medium and long-term upward trend of the sector. Moreover, with the support of new technologies such as AI and MR in the future, the game media industry, as the core content carrier, has a large space for development, and there are more potential catalysts in the future. Finally, the current sector valuation and institutional allocation level are at a historically low level, so it has good allocation value.
ChinaAMC $ Game ETF (SZ159869)$ tracks the CSI Animation & Game Index, which is the largest and most liquid product in the market-related index products, and is suitable for investors with relatively high risk appetite and long-term optimism about the game industry. In terms of investment strategy, on the one hand, game ETFs fluctuate greatly and can meet the needs of the most suitable type, on the other hand, the long-term prospects are good, and they are also suitable for long-term allocation.
The above content is only for personal investment ideas sharing, not as the final investment decision, for reference only!Investment needs to be based on personal cognition, the market is risky, investment needs to be cautious!