Market review: in January 2022, the media index fell by 14.4%, underperforming the wind all a index by 4.94pct, ranking 26th among the 28 sub industries of Shenwan; The market value of TV broadcasting, film and television theaters, marketing, publishing, games and digital media increased or decreased by - 6.37%, - 8.79%, - 11.57%, - 14.37%, - 16.7% and - 30.78% respectively.
In terms of Valuation: by the end of January 2022, PE (TTM, median) of media (Shenwan) sector was 32.19 times (36.28 times the previous value), which was in the last 9.66% since 2010.
Industry tracking: 1) movies: high ticket prices and low person times, and the performance of the Spring Festival is lower than expected. Affected by the local epidemic and the lack of real popular funds, the total box office of the Spring Festival this year was 6.036 billion yuan (including service fees), down 22.84% from the same period in 2021, ranking the second in history; Compared with the same schedule in 2021, the number of film viewers and attendance rate decreased by 28.8% and 14.6pct respectively; The average fare increases by 7.98% compared with the same schedule in 2021. 2) Game: Chinese hand travel to sea continues to shine. According to sensortower, in 2021, the total revenue of China's mobile game products with the top 30 revenue from going to Sea reached US $11.5 billion in app store and Google play, a year-on-year increase of 24%; A total of 42 mobile games went to sea, with a revenue of more than US $100 million, an increase of 5 models year-on-year. 3) Metauniverse: South Korea announced the "metauniverse Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) leading strategy", which will achieve the fifth global market share of metauniverse by 2026.
Investment suggestion: affected by the fact that the performance forecast of some companies did not meet expectations and the decline of the concept of meta universe, the market of the media sector was poor in January. It is suggested to grasp the following main investment lines in the follow-up: 1) in the game sector, the valuation is at a historical low, the launch of new products provides short-term performance support, the long-term trend of going to sea is established, follow-up attention is paid to the restart rhythm of the version number, and Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Perfect World Co.Ltd(002624) , G-Bits Network Technology(Xiamen)Co.Ltd(603444) are recommended. 2) In the film and television sector, with the advent of the Spring Festival and the increase of public viewing demand, we focus on the leading cinemas with steadily increasing market share and the high-quality content supply companies that reserve films. We recommend Wanda Film Holding Co.Ltd(002739) , Beijing Enlight Media Co.Ltd(300251) . In the field of video, the rectification of culture and entertainment has basically come to an end. State owned enterprises have more advantages in carrying forward traditional culture and grasping the main line of content creation. They pay attention to the high-quality and scarce A-share Internet video platform and recommend Mango Excellent Media Co.Ltd(300413) . 3) the hot-selling mascots of the Winter Olympic Games are in short supply, which is expected to help the performance growth of relevant licensed production and retailers in 2022, focusing on Beijing Yuanlong Yato Culture Dissemination Co.Ltd(002878) .
Risk warning: stricter policy supervision; Intensified market competition; The performance is lower than expected.
