Zhongtai Securities says 2Q26 gaming revenue and gross profit hit record highs;
net profit attributable to shareholders was the second-highest on record but
edged down QoQ. Profit has concentrated markedly among top-tier firms while
losses at the tail widened. Growth in proprietary overseas titles slowed from
+40.5% to +18.8%. China domestic market scale in July was up 6.9% YoY, the
weakest reading so far in 2026; excess growth came from overseas expansion and
rising concentration. Sector valuations are near trough levels; with interim
reports finalized and leading firms broadly delivering on EPS, the report says a
return of funds could prompt a valuation rerating.
