Photo/Dong Xingsheng (NBD)

With the popularity of Sora, the A-share gaming sector rose sharply on the first trading day after the New Year, ushering in a “good start”.

According to Wind, as of the close of February 19, the gaming ETF (SH516010) rose 7.66%, with a turnover of more than 170 million yuan. In the online gaming sector, more than 30 A-share gaming companies, such as 37 Interactive Entertainment, Giant Network and Century Huatong, saw their share prices rise.

Among them, Kunlun Tech, Shengtian Network and others saw their share prices rise by more than 10%.

As the share prices soared, the A-share gaming companies also delivered their reports for 2023.

Choice data shows that, as of now, 23 A-share gaming companies have disclosed their 2023 performance forecasts. Kingnet Network took the lead, expecting net profit attributable to shareholders of a listed company to be 1.3-1.7 bln yuan, up 26.81% to 65.83% year on year.

Among them, nearly 70% of the companies expect to turn a profit in 2023. Seven gaming companies, such as Yaoji Technology and Ourpalm, expect their net profit attributable to the parent to increase by more than 50%. 

Related research reports point out that the 2023 performance forecasts of gaming companies have improved overall, with most achieving performance growth or turning losses into profits, and the industry’s overall recovery trend is obvious; overseas expansion and mini-game market development are expected to provide continuous momentum for 2024.

As of now, 115 domestic games and 32 imported games have been approved for game licenses in 2024.