Wanlian Securities: The number of game approvals in September remained at a high level; China's gaming industry continued its steady growth trend in August.

Wanlian Securities released a research report stating that the number of game approvals in September remained at a high level, further verifying the stability of the normalized operation of game approval supply. Obtaining dual-platform qualifications simultaneously helps expand user coverage and extend product life cycles, and leading manufacturers are expected to continue benefiting from their stronger R&D and dual-platform operational capabilities. From a medium-to-long-term perspective, it is recommended to focus on leading manufacturers with multi-platform R&D and operational reserves, as well as manufacturers with rich overseas product lines and mature operational experience in the synthesis and strategy genres. The main viewpoints of Wanlian Securities are as follows: 209 game approvals granted in September, with a stable supply pace The bank believes that the number of game approvals in September remained at a high level, further verifying the stability of the normalized operation of game approval supply. Since the beginning of the year, the pace of game approval review has gradually stabilized, and expectations on the industry supply side have continued to consolidate. Stable game approval supply will continue to drive reserve new products from various companies into the testing and launch cycle, driving the sector's performance to gradually materialize. In addition, among the products approved this month, 16 passed review with dual-platform qualifications for "mobile and client," including miHoYo's "Origin Knot" and ARCHOSAUR GAMES' "Lord of the Mysteries: The Fool," while among the 15 products with approval changes, several also added client or mobile versions, such as 4399's "Velvet Snow Operation." Obtaining dual-platform qualifications simultaneously helps expand user coverage and extend product life cycles, and leading manufacturers are expected to continue benefiting from their stronger R&D and dual-platform operational capabilities. It is recommended to focus on leading manufacturers with rich product reserves and dual-platform R&D capabilities, as well as the sustainability of new product launch progress and subsequent game approval review pace. August 2026 China Game Industry Monthly Report released The report shows that actual sales revenue in the domestic game market was 31.627 billion yuan, up 1.7% month-on-month and up 8.08% year-on-year. The bank believes that in August the gaming industry continued its steady growth trend, with mobile and client segments jointly supporting the market's year-on-year performance. Among them, actual sales revenue in the mobile game market reached 23.395 billion yuan, up 1.39% month-on-month and up 8.6% year-on-year. Leading products such as "Game for Peace," "Delta Force," and "VALORANT: Source Energy Operation" achieved revenue growth through continuous version content and crossover activities, constituting the main source of mobile segment growth; actual sales revenue in the client game market reached 6.703 billion yuan, down 2.34% month-on-month and up 2.13% year-on-year. The weakening version dividends of some older dual-platform interoperable products brought seasonal declines, but new products such as "Delta Force" and "Lord of the Mysteries" formed supplementary volume, resulting in an overall differentiated pattern; actual sales revenue in the overseas market for self-developed games reached 2.030 billion U.S. dollars, up 0.88% month-on-month and up 20.87% year-on-year, continuing to achieve both year-on-year and month-on-month growth. Mature-stage products realized incremental gains through high-frequency operational activities, with the synthesis and strategy tracks running in parallel. It is recommended to continue tracking the pace of new product launches in September, the revenue performance of dual-platform products, and expansion in key overseas markets. Investment highlights Industry developments: (1) Games: 209 game approvals granted in September, with a stable supply pace; (2) Games: August 2026 China Game Industry Monthly Report released; (Games: "Honor of Kings" 3) The Chinese team defended its Asian Games gold medal; (4) Games: "Delta Force" China server daily active users exceeded 58 million; (5) Film: The 2026 National Day holiday box office period officially ended, with total box office of 1.165 billion yuan Industry valuation: The PE (TTM) valuation of the SW Media industry rose last week, fluctuating upward from 24.64X to 25.38X, but still below the 2018-2025 average level of 26.24X, with a decline of 3.29%. Risk warnings: Changes in the policy environment; consumption recovery falling short of expectations; intensified market competition; innovative technology applications falling short of expectations; AI application infringement risks; goodwill impairment risks.