Hong Kong Stock Market News | ZX INC rises over 4% to reach a new high since the end of September, with a cumulative increase of 233%. Institutions believe that the gaming industry is entering a new phase of development cycle.

Zhitong App learned that ZX INC (09890) has risen by over 4%, reaching a new high since its listing at the end of September, with a cumulative increase of 233%. As of the time of writing, it has risen by 4.78% to HKD 46, with a turnover of HKD 39.56 million.

It is reported that ZX INC's main business focuses on China's marketing and operation of online games, including the distribution of online games, other marketing businesses, and consumer goods businesses. The revenue proportions of the two main business segments in 2022 are 97.6% and 2.4%, respectively.

Cinda Securities pointed out that the value output of the gaming industry relies on the supply of new content. Currently, the overall recovery in supply is strong, further supporting the fundamental recovery of the gaming industry. The gaming industry is entering a new development cycle. The valuation center of A-share gaming companies in 2023-2024 is 17x/13x, and the valuation center of Hong Kong stock gaming companies is 16x/11x. It is worth noting the leading companies with sound fundamentals.

Anxin International believes that user spending in the mobile gaming market in 2022 will decrease by 3.2% compared to 2021, but it is expected to grow at a compound annual growth rate of 4.8% in the next five years. According to relevant information from Frost & Sullivan, Web3.0 will empower the mobile gaming market in the future, and combine with new features such as blockchain, cryptocurrency, and NFT to revitalize the mobile gaming market.