Game and film industry surge review

The market rebounded strongly, with the gaming ETF (516010) rising over 5% intraday, and the film and television ETF (516620) up over 4% intraday, ranking among the top in market-wide themes.

【Reason Analysis】

Macro: The US and Iran reached a phased ceasefire agreement, significantly easing geopolitical risks. Global equity markets’ risk appetite has rebounded, with funds actively seeking previously oversold sectors with fundamental support. The media sector, as a typical representative, has seen concentrated capital replenishment.

Gaming: Recently, multiple heavyweight products have been launched or are about to be released. The mobile game “Lock Kingdom” performed better than expected upon release, with iOS revenue reaching 130 million yuan in the first 10 days before launch (SensorTower data), and DAU continuing to climb, validating the long-term potential of classic IP adaptations. “Honor of Kings World” is scheduled to launch on April 10, attracting high market attention. The pre-registration volume for “Ecosystem” exceeded 36 million, comparable to the pre-launch volume of “Mingchao.” During the summer, there are also reserve products like “Under the Human” and “Grain Little People’s Country,” indicating a dense product cycle in the industry. Additionally, some manufacturers benefit from the reduced revenue share ratio from Google, positively impacting their performance.

AI + Film & TV: In early April, a major breakthrough occurred in the video generation field— the new model HappyHorse-1.0 topped the Video Arena ranking on Artificial Analysis, the most authoritative AI video evaluation platform globally. Both text-to-video (T2V) and image-to-video (I2V) tracks have fully surpassed the previous benchmark Seedance 2.0 in visual quality, and the open-source approach has positive implications for popularizing AI video content creation tools and reducing costs. The industry trend of AI + media continues to strengthen.

【Market Outlook】

In the first quarter, game industry products performed well in revenue, with several leading products contributing incremental income, providing strong support for Q1 results. In April, listed companies’ performance disclosures will intensify. As the game sector is a relatively certain earnings direction, after a significant correction due to earlier market risk aversion, valuations have fallen back to relatively low levels historically, offering high cost-effectiveness. As earnings data are gradually realized and with the catalysis of major product launches, the sector is expected to see valuation recovery and capital replenishment during the earnings period, warranting close attention.

Investors interested may focus on:

Game ETF (516010), covering core listed companies in the gaming industry, enabling one-click exposure to the gaming supply chain;

Film & TV ETF (516620), focusing on leading media and entertainment companies, with an eye on AI + film & TV industry trends.

(Risk warning: Mentioned stocks are only used for industry event analysis and do not constitute any stock recommendation or investment advice. Short-term index fluctuations are for reference only and do not predict future performance, nor do they constitute a promise or guarantee of fund performance. Views may change with market conditions and do not constitute investment advice or commitments. Different funds have different risk-return profiles; investors should carefully read the fund legal documents, fully understand product features, risk levels, and distribution principles, and choose products that match their risk tolerance. Invest cautiously. For fund fee rates, please refer to legal documents.)

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