Gaming Sector Update: Earnings Support, Industry Stable, Ample Valuation Recovery Room

English summary

Key points: 1. H1 industry revenue (domestic +12% YoY, overseas +30% YoY) and multiple companies' earnings pre-announcements show steady growth. 2. Valuations are at historical lows; leading companies trade at ~10x+ PE, leaving ample room for recovery. 3. July game license approvals hit a multi-year high; industry conferences + ChinaJoy opening soon provide dense catalysts. Stock picks: #? NetEase: evergreen flagships + new games + ROI + Stock Connect inclusion + globalization; focus on flagships and new game tests. #? XD Inc.: 'Xiaozhen' steady, 'Torch' continues upward, TapTap PC DAU gradually growing, AI agent + Tap Maker continue to grow. #? Century Huatong: WOS/KS overall stable; watch new games like Hotel Legacy. #? 37 Interactive: multiple mini-games have been climbing since launch + RO Southeast Asia launch; stable high dividend. #? Kaiying Network: rich product pipeline + AI SOON advancing. #? Gibbon: stable products, good ROI, high dividend. #? Giant Network: supernatural-themed summer + overseas performance. #? Perfect World: (truncated)