Market Review
In the fourth and fifth weeks of 2022 (the actual trading day is 2022.01.24-2022.01.28), the Shanghai stock index fell by 4.57%, the Shanghai and Shenzhen 300 index fell by 4.51%, and the gem index fell by 4.14%. The SW media index fell 9.66%, underperforming the gem index by 5.51pct, ranking 27th among the 28 industries in Shenwan level. Among the sub industries, publishing, Internet services and film and television ranked among the top three, with – 6.61%, – 6.70% and – 7.06% respectively.
Media industry data
As of February 6, 2022, the top three cinema films are “shuimen bridge of Changjin Lake”, “the killer is not too calm” and “miracle stupid child”; The movie “battle of yin and Yang: the top three of the game”; The top three film and television series are “beginning”, “you in this life” and “Twinkle Twinkle”; The top three of the variety shows are “every day up 2022”, “2022 China Central Television Spring Festival Gala” and “half familiar lovers”; The top three of the anime are “the continent”, “the complete works of piggy page” and “the first season of stars”. The top three best-selling IOS games are “glory of the king”, “peace elite” and “hero League mobile game”; The top three Android game hits are glory of the king, original God and tomorrow’s Ark.
Core view
The digital technology exhibition helped the opening ceremony of the Winter Olympics, and the main theme film won the title in the Spring Festival. On February 4, the opening ceremony of the 24th Winter Olympic Games was held in Beijing National Stadium, presenting the world’s largest LED three-dimensional stage, replacing the traditional ground screen projection with 16K full led images, integrating digital technology display, AI action capture and Chinese traditional ink aesthetics, highly demonstrating cultural confidence; According to the real-time data of Lighthouse professional edition, as of February 5, 2022, the total box office of new films for the Spring Festival has exceeded 5 billion. After the previous film “Changjin Lake” set a box office record in Chinese film history, the box office share of the main theme film “shuimen bridge of Changjin Lake” is 40.54%, ranking first, 20.3% higher than that of “this killer is not too calm”, which is expected to become the box office champion. Combined with the recent “14th five year plan” for the development of digital economy, we believe that the business formats related to the meta universe are favored by clear policies, and the logic of the track is therefore strengthened. Investors are advised to pay attention to the relevant targets in the sub domain of the meta universe, such as digital display, virtual dance beauty, ultra-high definition video, VR, digital virtual human and so on.
Investment advice
We continue to pay attention to the game sector and recommend head game R & D manufacturers with low valuation, Perfect World Co.Ltd(002624) , Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) ; In terms of new media sector, we strongly recommend the state-owned new media platform operation company Mango Excellent Media Co.Ltd(300413) , which is backed by Hunan Taiwan high-quality content production platform, has high performance growth and continues to benefit from the dividends of media integration reform; In the film sector, it is suggested to pay attention to the investment opportunities promoted by the introduction of the 14th five year plan, and the digital cinema and new media copyright business of Beijing Jetsen Technology Co.Ltd(300182) will benefit directly; In other sectors, it is recommended that Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) the leading digital cultural and creative exhibition company benefiting from the “cultural infrastructure” and Beijing Fengshangshiji Culture Media Co.Ltd(300860) the large-scale producer of cultural and tourism performance programs committed to creating the output carrier of “cultural confidence”.
Risk tips
Regulatory policy uncertainty risk; Macroeconomic downside risks.
