Analysis of Undervalued High-Dividend Game Stocks Worth Holding Long-Term in 2026

According to recent institutional research reports and market analysis, the game sector is generally optimistic about 2026 and may迎来 a Davis Double Click in performance and valuation. Among undervalued high-dividend game stock selections, institutions prefer leading companies and media game targets with dividend-paying capabilities. Leading companies like Tencent and NetEase are highly recommended due to their overseas business expansion and solid fundamentals; Focus Media, as a media target with a dividend yield exceeding 5%, also receives attention. The game industry’s projected P/E ratio for 2026 is approximately 16 times, which is in a reasonable valuation range and has long-term allocation value [1][4].

The investment value of the game sector in 2026 has been unanimously recognized by multiple institutions. Institutions such as Zhongtai Securities believe that there are two most certain directions for A-share media investment opportunities in 2026: one is games, and the other is AI applications. The game sector will be a long-term logic, lasting at least until the first half of 2026 [1]. This judgment is based on the following core logics:

First, from the perspective of industry prosperity, after the previous adjustment, the game industry has seen a recovery in user consumption willingness, and the normalized issuance of version numbers provides a stable policy environment for industry development. Second, from the valuation perspective, the game industry’s projected adjusted P/E ratio for 2026 is 16.0 times, and the P/S ratio is 2.8 times, which is 0.7/0.2 standard deviations higher than the industry’s long-term average, and the valuation is in a reasonable range [4]. More importantly, several second-tier leading companies in A-shares have continued to increase their流水, market share, and revenue market share in the sector, and are expected to迎来双重提升 in performance and valuation, the so-called Davis Double Click [1].

From the perspective of capital flow, the 2025 Hong Kong stock repurchase closing data shows that Tencent alone accounted for a quarter of the HK$319.1 billion repurchase, ranking first in Hong Kong stock repurchases for four consecutive years. The huge repurchase amount shows the company’s confidence in its own value and also provides strong support for the stock price [2].

As a leader in the game industry, it is recommended by multiple brokers such as Guosen Securities and Western Securities. Overseas business has become a clear second growth curve for Tencent’s game and cloud business, and the early strategic investment is entering the result realization period [3][4]. From the valuation perspective, Tencent’s projected P/E ratio for 2026 is approximately 16 times, which is lower than the historical center, and combined with continuous large-scale repurchases, it has strong appeal to long-term investors.

is highly recommended by institutions such as CICC. The company’s game business has solid fundamentals, outstanding product matrix iteration capabilities, and significant results in overseas market expansion, with strong defensiveness [1][4]. NetEase’s projected P/E ratio for 2026 is approximately 15.4 times, which is relatively low among leading game companies and has a good safety margin.

is listed as a potential small-cap company by Caitong Securities, representing a high-elasticity target in the game sector of the Hong Kong market [4].

CICC’s allocation preferences cover multiple second-tier leading companies, including Century Huatong, Giant Network, Gigabit, and Perfect World [1]. These companies performed prominently in 2025, with Century Huatong and Giant Network’s annual stock price increases exceeding 200%, showing the market’s re-recognition of their value [5]. Gigabit’s recent products worth attention include “Zhenmu” and others, which are expected to contribute performance increments in 2026 [3].

37 Interactive Entertainment is active in the mini-game track, and its new product “Survive Three Days” has attracted market attention, representing the innovation direction of the game industry’s细分领域 [3].

In the game and media fields, Focus Media is a target clearly named by institutions with a dividend yield of more than 5%. After the recent correction, the dividend yield has increased to more than five points. Next year, consumer advertisers will have a relatively stable basic盘 due to the impact of three major events: the European Cup, the Olympic Games, and the Copa America [1][6]. Although Focus Media’s main business is advertising media, it is highly related to the advertising placement needs of the game industry and can be used as an allocation option for the game industry chain.

Kaiying Network (002517.SZ) as a game sector target, the forward dividend yield is about 0.91%, and the P/E ratio is 25.63 times, which is a medium valuation level in the game industry [6].

From the valuation dimension, the overall valuation of the game industry is in a reasonable range:

Company	2026 Projected P/E Ratio	Industry Position	Dividend Yield Characteristics
Tencent Holdings	16.0x	Industry Leader	Repurchase-focused, sustained dividends [2]
NetEase	15.4x	Leading Company	Stable dividends, strong defensiveness [4]
Century Huatong	High	Second-Tier Leader	Significant growth, valuation repair [5]
Giant Network	High	Second-Tier Leader	Product-driven, high elasticity [5]
Gigabit	Medium	Second-Tier Leader	Product cycle focus [3]
Focus Media	Low	Advertising Leader	Dividend yield over 5% [1]
Kaiying Network	25.63x	Mid-sized Company	Forward dividend yield ~0.91% [6]

It should be noted that the specific dividend yield data of most game stocks is limited in public information, and investors need to pay attention to the sustainability of the company’s dividend policy and cash flow status when making decisions.

Institutions generally believe that the market is expected to launch a spring market in a strong shock in January, and games as the main line of technology growth are expected to continue to dominate [3]. From the allocation strategy perspective, investors can pay attention to the following dimensions:

: Focus on game companies with high 2025 annual report performance growth and low valuation. Such companies are expected to获得 market value revaluation after performance verification [3].

: The new product release situation in the first half of 2026 will be a key variable determining the industry development in the second half of the year and 2027. Companies with strong product reserves are worth focusing on [1].

: The current overall valuation of the game industry is in a reasonable range, and for targets with solid fundamental support, the valuation repair space is worth attention.

The linkage effect between the game sector and AI applications deserves close attention. AI technology is shortening the game R&D cycle and improving R&D efficiency, and the investment of leading companies in AI applications is expected to transform into competitive advantages [1]. At the same time, the overall heat of the AI application sector has increased, which has also brought capital attention and valuation premium expectations to the game sector.

The continuous advancement of game companies’ overseas strategies is another important trend. Leading companies like Tencent and NetEase have high certainty in overseas business growth, and overseas markets have become a clear second growth curve [4]. This trend not only reduces the risk of a single market but also opens up new growth space for the company.

From the perspective of market capitalization style, institutions have allocation recommendations for game companies of different market capitalization scales. Leading companies like Tencent and NetEase have stronger safety margins and liquidity; second-tier leaders like Century Huatong and Giant Network provide higher elasticity space; small-cap companies like Xindong Company represent high-risk and high-return choices [4].

From the industry chain perspective, advertising media companies like Focus Media are not mainly engaged in games, but they are highly related to the advertising placement needs of the game industry and have higher dividend yield characteristics, which can be used as an allocation supplement for the game industry chain [1].

Tencent has ranked first in Hong Kong stock repurchases for four consecutive years, with a repurchase amount of up to a quarter of HK$319.1 billion in 2025. This data releases a strong valuation signal [2]. Large-scale repurchases usually indicate that the company believes its stock price is undervalued and also provides liquidity support for the secondary market.

: Competition in the game industry may intensify again, affecting the overall profit margin of the industry. During the intensive release period of new products, there may be situations such as rising customer acquisition costs and user diversion.

: Overseas expansion may encounter obstacles from geopolitical factors, affecting the implementation effect of game companies’ overseas strategies.

: After a large short-term increase, some companies may face adjustment pressure. In 2025, companies like Century Huatong and Giant Network had stock price increases of more than 200%, so we need to pay attention to the risk of valuation correction [5].

: Excessive AI-related investment or不及预期 commercialization may affect the company’s performance and valuation level.

: Institutions are generally optimistic about the allocation opportunity in January, and games as the main line of technology growth are expected to continue to dominate [3].

: The 2025 annual report disclosure period is approaching, and companies with超预期 performance are expected to获得 market value revaluation.

: The new product release wave in the first half of 2026 will bring performance increment expectations to relevant companies.

: The current overall valuation of the game industry is in a reasonable range, and targets with solid fundamental support are expected to迎来 valuation repair market.

Comprehensive assessment shows that the risk-return characteristics of the current game sector are relatively favorable. The consistent optimism of institutions is mostly based on the improvement of industry fundamentals and the rationality of valuation, rather than pure optimistic expectations. Investors should maintain moderate diversification when participating, focus on targets with solid fundamental support, and avoid excessive pursuit of varieties with large short-term increases.

This analysis is based on comprehensive information from multiple channels such as Securities Times, Broker China, Sina Finance, AASTOCKS.com, Tiger Securities, Yahoo Finance, Discovery Report, Investing.com [1][2][3][4][5][6][7][8].

: The game sector has long-term allocation value in 2026. The selection of undervalued high-dividend stocks should comprehensively consider the company’s fundamentals, industry status, dividend-paying ability, and valuation level. Leading companies like Tencent and NetEase provide strong safety margins; high-dividend targets like Focus Media provide stable cash returns; second-tier leading companies provide higher elasticity space.

: The specific dividend yield data of most game stocks is not clearly reflected in public information, and investors need to further consult the company’s dividend policy announcements and financial statements when making decisions.

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[1] Securities Times - How to Invest in High-End Manufacturing and Technology with Moore Threads and Cambricon Valued at 1.1 Trillion Yuan

[2] Broker China - Splashing HK$319.1 Billion! 2025 Hong Kong Stock Repurchase Concludes, Tencent Takes 1/4, Reigning for Four Consecutive Years

[3] Sina Finance - Broker Golden Stocks for the First Month of 2026 Are Here

[4] AASTOCKS.com - 2026 Hong Kong Stock Market Investment Outlook PDF

[5] Tiger Securities - Year-End Review | Did You Buy the Right Game Stocks in 2025?

[6] Yahoo Finance - Kaiying Network (002517.SZ) Stock Price, News, Quotes and Records

[7] Discovery Report - Media Monthly Talk 2026 Outlook Policy Empowers New Cycle AI Overseas and I

[8] Investing.com - Anchoring High-Quality Targets of Hang Seng Technology Caitong Securities Recommended These 20 Stocks

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