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Cailianshe News, August 20 (Reporter Wu Yuqi)Which sectors have been heated up by the sudden emergence of “Wukong”?

On August 20, the highly anticipated domestic 3A game masterpiece "Black Myth: Wukong" was officially launched and started global sales. After only 2 hours online, the number of simultaneous online players on the Steam platform reached 1.3 million, surpassing many popular games to become the top three in the history of Steam's simultaneous online list, and it is the only domestic game in the top ten. The current online value is still rising.

It is reported that "Black Myth: Wukong" is an action role-playing game based on Chinese mythology, developed by the Game Science Team, a Chinese game developer. The core content is based on the world view of the original "Journey to the West".

The launch of Black Myth: Wukong has dominated the discussion on major social platforms and even topped the Weibo hot search list. Many netizens said, "I'm still at work, but my heart is already on Wukong." "I've downloaded it and will play it when I get home." As the release date is a weekday, the industry expects that the number of online users of the game will set a new record this evening.

While the market was booming, the heat also spread to the capital market, with the gaming sector surging and related concept stocks hitting their daily limit.

As of the close of the 20th,China Travel UnitedStraight up limit,Zhejiang Edition Media、New Schindler、CITIC PublishingThe price limit continued to rise.Huayi BrothersUp 19.03%Silk Road VisionUp 8.08%Xunyou Technology、Caesar Culture、Huicheng Technology、Shunwang TechnologyHowever, in the context of the hot game sector, the game ETF performed poorly. As of the close, the Cathay CSI Animation and Game ETF fell by 1.55%, and the Huaxia CSI Animation and Game ETF fell by 1.93%.

Which funds will benefit from the surge in “Wukong” concept stocks?

According to public information, many listed companies in the A-share market have close ties with "Black Myth: Wukong". For example, Huayi Brothers once stated on an interactive platform that the company holds a 5.17% stake in Hero Entertainment, which is an early investor in Game Science, the developer of "Black Myth: Wukong".

In the morning trading today, Huayi Brothers' stock price opened higher and continued to rise, hitting the daily limit during the day, and closed up 19.03%. Looking at the long-term trend, the company's stock has been rising for several consecutive trading days. In particular, on August 19, the eve of the company's game release, Huayi Brothers' stock price closed at a strong increase of 20%, and the cumulative increase since August 14 has exceeded 70%.

According to yesterday's after-market data, Huayi Brothers was bought by multiple hot money on the same day. Among them, the well-known hot money CITIC Securities Shanghai Branch bought 87.9985 million yuan of the stock. Guotai Junan Yichang Zhenzhu Road Securities Sales Department and Guotai Junan Chengdu Beiyihuan Road Securities Sales Department bought 30.9956 million yuan and 28.5488 million yuan of the stock respectively.

In addition to Huayi Brothers, as the publisher of the game, Zhejiang Edition Media hit the daily limit today. Zhejiang Edition Media also stated on the interactive platform a few days ago that the company is responsible for the content review, publication declaration and application for publication number of the game.

In addition, Cailianshe reporters found that Zhejiang Edition Media's year-to-date increase was more than 30%. Judging from the timing of the sharp rise in the stock price, the stock had seen a rise in mid-June, which was around the time when "Black Myth: Wukong" started pre-sales. Previously, when the game was approved for its version number in February, Zhejiang Edition Media also ushered in a wave of increases.

Silk Road Vision also responded on the platform, saying, "During the pre-order stage before the release of the game, a 9-minute fan animation of "Black Myth: Wukong" completed by an independent CG designer, which ranked second on Bilibili at the time, was rendered by Ruiyun Technology." Silk Road Vision closed up 8.08% today.

In addition to the game itself, there is news that CITIC Publishing participated in publishing the setting collection of "Black Myth: Wukong". It is understood that CITIC Publishing is one of the companies that make peripheral products for "Black Myth: Wukong" and will publish a setting collection for this game. The setting collection is tentatively scheduled to be launched around November. Today, CITIC Publishing also hit the daily limit, closing up 20.02%.

In addition to stocks related to Black Myth: Wukong, other game stocks and media stocks also rose today. For example, China Travel United and Xinxunda hit the daily limit, while Xunyou Technology, Caesar Culture, Huicheng Technology, Shunwang Technology and others were among the top gainers. Many listed companies, such as Xinxunda, also responded that the company had no business relationship with the game; China Travel United also said that it was not clear about the specific reason for the daily limit.

From the perspective of public funds, some funds have also seen "Wukong" concept stocks in their heavy holdings. For example, Zhejiang Media was held by Green Hongjing in the second quarter with 1.8785 million shares. Zhejiang Media is the seventh largest holding of the fund. Green Hongjing is managed by Liu Yang, with a total size of 1.936 billion yuan. Jinxin Quantitative Selection also holds a small amount of the stock, a total of 29,000 shares. The fund is relatively small in size, and Zhejiang Media ranks as the seventh largest holding of Jinxin Quantitative Selection.

The reporter also noticed that Bose Internet Theme, Caitong Asset Management Xinrui and Green Hongli also held a large position in the stock in the first quarter, but disappeared from the list of their top ten holdings in the second quarter, when they held 711,800 shares, 60,000 shares and 526,900 shares respectively.

Huayi Brothers did not appear on the list of the fund's heavily-weighted stocks in the second quarter, but the stock can also be seen in the data disclosed in the fund's annual report. As of the end of 2023, a total of 29 funds held the stock, of which many ETFs held a large number of shares. For example, the Southern CSI 1000 ETF held 4.0976 million shares, the GF CSI 1000 ETF held 3.8152 million shares, and the Tianhong CSI 1000 Index Enhanced and Hua Xia CSI 1000 ETF held more than 3 million shares.

As of the end of last year, CITIC Publishing was held by 53 public funds, among which Industrial Bank Xingrui held 900,000 shares for two years, China Merchants Sports Culture and Leisure held 889,700 shares, Hongde Ruixing held 884,300 shares, Hongde Fengrun held 675,900 shares and Hongde Research Select held 585,100 shares respectively, and ABC-Huarong Industrial 4.0 held 407,600 shares.

Silk Road Vision was also held by 76 funds in the fourth quarter of last year. Among them, Haitong Fund Management held 2.7292 million shares, China Asset Management Emerging Industries held 1.2104 million shares, and Haitong Fund Management Growth Selection, Golden Eagle Dividend Value, and Golden Eagle Technology Innovation all held relatively large shares.

However, the fund’s 2024 interim report has not yet been disclosed, and the full picture of the funds’ portfolio adjustments to the above-mentioned stocks is still unknown.

Securities firms quickly commented

The popularity of "Black Myth: Wukong" has also prompted many brokerage firms to quickly release related research reports.

According to a research report by CITIC Securities, the gradual release of media reviews for Black Myth is expected to continue to boost the game's popularity. IGN and other media outlets gave high scores and highly praised the graphics, plot, and gameplay. They believe that the game science team has once again proved that games are driven by creativity and design, and even 3A games with high industrial requirements are not entirely driven by labor-intensive efforts, which is expected to continue to attract attention from companies with strong R&D capabilities.

Minsheng Securities believes that Black Myth: Wukong also indicates to some extent that Chinese local developers have the ability to develop 3A masterpieces recognized by the world, and the level of game industrialization has been further improved. The game industry continues to advance in quality, and pays attention to the deep empowerment of new technology capabilities in content creation. At the same time, new game products are launched one after another to drive the start of new product cycles. It is recommended to continue to pay attention to game companies with key product reserves in the future.

West Securities stated that "Black Myth: Wukong" also indicates that Chinese game companies have the ability to produce high-quality, high-standard 3A masterpieces that can compete in the global market, and it pays attention to domestic game manufacturers with strong R&D capabilities and rich product reserves.

Huatai Securities also commented in a recent media update that Black Myth: Wukong has outstanding performance in terms of art expression and gameplay innovation. First, Black Myth is developed using the Unreal Engine 5, which supports 4K, 60 frames, and ray tracing, greatly improving the visual effects of the game. Second, in terms of gameplay innovation, the weapon stick has three stick postures: chopping stick, standing stick, and poking stick. The innovative design of the weapon with Chinese characteristics in the game is highly complete.

They believe that Black Myth: Wukong is a milestone for domestic games, and the gaming industry chain may be re-evaluated. The success of Black Myth proves the breakthrough of domestic self-developed games, which may bring new opportunities to the gaming industry. It is recommended to pay attention to companies in the gaming industry chain.