37 Interactive Entertainment Network Technology Group Co Ltd

The Chinese mobile‑ and web‑game developer 37 Interactive Entertainment Network Technology Group Co Ltd (002555.SZ) experienced a sharp rally on 5 January 2026, driven largely by the broader recovery of the A‑share market and sector‑specific catalysts. The company’s stock closed at 23.6 CNH on 30 December 2025, a level well above its 52‑week low of 13.11 CNH and approaching the 52‑week high of 24.35 CNH reached on 3 November 2025. The market capitalisation stood at approximately 52.2 billion CNH, and the price‑to‑earnings ratio was 16.54.

Market‑wide backdrop

On 5 January, the A‑share market opened with an unprecedented surge in daily limit‑up stocks. 128 individual shares recorded a limit‑up, a new high since 21 July 2025. The rally was particularly strong among media and technology names; “20cm” and “30cm” limit‑ups comprised nearly a quarter of the limit‑ups that day. Within this context, 37 Interactive achieved a limit‑up and sustained a “封板” (closed‑price limit) for several hours.

Sector‑specific drivers

The gaming sector experienced a pronounced rebound. A new batch of 1,771 domestic game licences was approved by the National Press and Publication Administration on 25 December 2025, a 25 % increase over 2024 and the highest volume since 2018. Analysts from Eastmoney and Shanghai Securities Journal noted that the licence‑approval momentum, coupled with supportive policies such as “game licence local‑handling pilots,” has improved the operating environment for game developers.

Within the gaming cluster, 37 Interactive’s performance was highlighted by several market participants:

  • Wind Level‑2 data recorded a 14‑day net inflow of 1.7 million CNY into the China Dividend Quality ETF (159209), which includes 37 Interactive as a core holding.
  • Sohu reported a 2.7 % dividend‑related gain for the ETF, driven by the strong performance of constituent shares including 37 Interactive.
  • Eastmoney highlighted that 37 Interactive, along with other media and technology names, contributed to the sector’s upward momentum, with several shares hitting limit‑up thresholds.

Company‑level developments

While the company did not announce new product releases or strategic shifts on 5 January, its performance reflected the following:

  1. Revenue and profitability: The company’s financials for the 2025 fiscal year showed steady growth in mobile‑game revenues and a modest improvement in operating margin, consistent with industry trends.
  2. Business model: 37 Interactive continues to focus on designing, developing, and operating mobile and web games, supplemented by game promotion, customer service, and payment services. This diversified service model mitigates revenue concentration risks.
  3. Valuation: At a P/E of 16.54, the stock trades at a moderate multiple relative to peers such as Bilibili and Tencent, suggesting that the recent rally is largely market‑driven rather than a fundamental over‑valuation.

Outlook

The combination of a robust sector‑level licence approval wave, supportive policy environment, and the overall A‑share market recovery has created a favourable backdrop for 37 Interactive. The stock’s recent limit‑up indicates strong investor confidence, but analysts advise monitoring the company’s quarterly earnings releases for confirmation of continued growth.