The game community TapTap carries the market’s valuation imagination and also bears growth pressure.
Editor’s note: This article is from the micro-channel public number “all-weather technology” (ID: iawtmt), Author: Pao School Qian, Editor: Luo Lijuan.
The year 2020, shrouded by the epidemic, should have been a year for the online entertainment sector to shine, but the stock prices of listed game companies have gone up and down.
Since July 2020, the game sector has fallen by more than 25%. The share price of 37 Interactive Entertainment, which once exceeded 100 billion in market value, has fallen by more than 30%; and the share price of Gigabit, which was once known as Little Moutai in the game industry, is also almost Nearly cut, compared with last year’s historical high of 671.6 yuan/share, it was adjusted back to 358.87/share.
Behind the overall encounter of the game stocks with Waterloo, apart from over 100,000 “unversioned games” being removed from Apple’s App Store, the game industry generally relies on purchases to acquire customers. As channel costs continue to be piled up, sales expenses The growth rate has been much higher than the revenue growth rate. Some brokerages pointed out that this has led to a decline in the return on investment of game companies and weak performance such as net profits.
On the other side, as a new upstart in the game channel, taptap quietly emerged at this time.
At the beginning of the new year, the news broke out that Huawei’s mobile game channel was delisting all Tencent’s game products. Although the two sides quickly settled, the dispute between game manufacturers and traditional channels about game streaming sharing did not end.
Affected by this, the Hong Kong-listed gaming company “Xindong” (HK2400), a Hong Kong-listed gaming company that owns a third-party application distribution platform TapTap, soared, achieving a 20.63% increase on the first trading day of the new year.
Since its listing on the Hong Kong Stock Exchange at the end of 2019, Xindong’s share price has risen by more than 660%, and its market value has reached 43 billion yuan, becoming a dark horse on the game track.
Taking “discovering good games” as Slogan, the mobile game community TapTap has used the content social mode to circle a group of heavy mobile game enthusiasts who are tired of channel advertising and focus on the quality of the game experience; at the same time, abandon the traditional channel joint transportation sharing model , TapTap has become a unique channel for the domestic Android market with zero share, attracting many developers to cooperate with it.
Including “The Strongest Snail” from the celadon network, which is popular on the whole network, and the “Hundred Scenes of the South of the Yangtze River” from the Yedao Games, both choose to cooperate exclusively with TapTap; the head mobile game Lilith’s “The Awakening of Nations” and Miha You’s “Yuan Shen” also chose to avoid the mainstream Android app store and switched to TapTap.
TapTap, as an innovator of game distribution and a challenger of traditional distribution channels, has gradually gained fame and has also risen in the capital market.
In September 2018, when Xindong was delisted from the New OTC Market, its market value was only 3.5 billion yuan.
In just over 2 years, why did the market value soar? Does its strength match the current market value? What is the next driver?