Market Review
In the seventh week of 2022 (the actual trading day is 2022.02.14-2022.02.18), the Shanghai stock index rose 0.80%, the Shanghai and Shenzhen 300 index rose 1.08%, and the gem index rose 2.93%. SW media index rose 0.27%, underperforming the gem index by 2.66pct, ranking 17th among the 28 industries in Shenwan level. Among the sub industries, games, sports and advertising marketing ranked among the top three, accounting for 1.04%, 0.56% and 0.25% respectively.
Media industry data
As of February 18, 2022, the top three cinema films are “shuimen bridge of Changjin Lake”, “the killer is not too calm” and “one product in ten years, such as Wen Ruyan”; The top three webcast films are “Li Mao as Prince”, “Changjin Lake” and “lion boy”; The top three film and television series are “the world”, “the river shines at dawn” and “two mirror cities”; The top three of the top ranked artists are “half lovers”, “detective 7” and “happy fried dough twist”. The top three of the anime are “the continent”, “the complete works of piggy page” and “the master of Wu Shen”. The top three best sellers of IOS games are “glory of the king”, “peace elite” and “original God”; The top three hot Android games are “glory of the king”, “original God” and “pixel Adventure World (test)”.
Core view
The project of “counting from the east to the west” was officially launched, and the pace of legislation in the field of digital economy was accelerated. Recently, the four departments jointly issued a notice, agreeing to start the construction of National Computing hub nodes in 8 places, and planned 10 national data center clusters. The overall layout design of the national integrated big data center system has been basically completed; Qiushi magazine published an article pointing out that it is necessary to strengthen legislation in important fields such as national security, accelerate the pace of legislation in fields such as digital economy, and strive to improve the legal system urgently needed for national governance and to meet the people’s growing needs for a better life. The computing power network is the bottom support of the meta universe. The full launch of the “computing from the east to the west” project will further provide guarantee for the high-quality development of the digital economy. Previously, the digital economy has been supported by a series of clear policies, and the improvement of relevant laws and regulations will promote the standardized development of the industry ecology. We believe that the business logic related to the meta universe has been strengthened, and we suggest investors to pay attention to the relevant targets in the sub sectors 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.
