Industry events
① Netease and other companies released performance forecasts, and the industry ushered in the financial reporting season. On February 24, Netease released the 21q4 financial report and the unaudited performance forecast for fiscal year 21. The annual net income was 87.6 billion yuan, a year-on-year increase of 19%, and the 4q21 revenue reached 24.4 billion yuan, a year-on-year increase of 23.3%; The annual net profit attributable to shareholders of the company was 16.857 billion yuan, a year-on-year increase of 39.7%, and 4q21 was 5.694 billion yuan, a year-on-year increase of 483.6%. Among them, the annual online game business revenue was 62.8 billion yuan, a year-on-year increase of 15%, and the 4Q game business revenue reached 17.4 billion yuan, a year-on-year increase of 29.8% Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Xinxin company also released performance forecast, and the media and Internet industry ushered in the financial reporting season.
② HKSAR Government: ready to welcome the return of China concept shares. Finance Associated Press, Feb. 23 – Chen maobo, financial secretary of the Hong Kong SAR government, said in his 2022 / 2023 budget that Chinese enterprises have to face increased risks and uncertainties when listing in overseas markets, and many Chinese stocks have chosen to return. Hong Kong has made preparations for this, including allowing greater China companies that do not have different voting structures and are non Chuang Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) to be listed in Hong Kong for the second time, and giving greater flexibility to dual major listed issuers.
Third, Kwai Kong electric supplier cut off the Taobao and Jingdong chain, and will realize the closed loop of the electricity supplier. February 22nd Kwai Kwai electric announced that the third party e-commerce platform and fast hand cooperation agreement changed, since March 1, 2022, Taobao alliance commodity link will not be able to publish goods and services links in the quick live shopping cart, short video shopping cart, Kwai Chai page, etc. Meanwhile, Jingdong alliance commodity link will not be able to publish links between goods and services in the Kwai live shopping cart, but it can be released in short video shopping cart, business page and so on.
④ JD will increase its shareholding in dada and will hold about 52% of its shares. On February 25, JD group and dada group jointly announced that JD group’s investment in dada has obtained all necessary regulatory approvals and is expected to be completed by the end of February 2022. When the transaction is completed, JD group will hold 52% of dada’s issued and outstanding shares, and is expected to incorporate dada’s financial performance into its consolidated financial statements.
Investment strategy
Compared with zhonggai shares, the attraction of Hong Kong stock Internet to investors is expected to improve, and the Hong Kong stock market may become an important scene for long-term Internet configuration. In December 2021, the implementation rules of hfcaa in the United States were improved, focusing on audit issues. After the implementation of the Regulatory Act in the United States, zhonggai shares will face some uncertainty, or enhance investors’ willingness to allocate funds to Hong Kong stock Internet. In addition, the HKEx lowered the threshold for secondary listing, and the new regulations will be implemented from January 1, 2022, further strengthening the attraction of the Hong Kong stock market, which is expected to promote the thickening of the transaction volume of the Hong Kong stock market in the future. From the perspective of employees and organizational structure, Internet companies will focus more on their main business and pay attention to fine and high-quality development in the future. Game section: game going to sea is the future trend. Pay attention to Tencent Netease going to sea.
Recommended portfolio: it is recommended to lay out high-quality assets in the long term and pay attention to the continuous iteration of meta universe technology. In terms of individual stocks, it is suggested to pay attention to the adjustment of organizational structure and focus on meituan in retail; In the game sector, there is an opportunity to go to sea. It is suggested that Tencent holdings, which focuses on the establishment of Tianmei F1 studio and speeds up the overseas layout, launch Netease of global IP mobile game Harry Potter, as well as the Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , which is carried by the P & s model and subsequent SLG product iterations; Absolute return target of a shares: it is suggested to focus on Mango Excellent Media Co.Ltd(300413) , which has the advantage of long video content, launches virtual hosts Xiaoyang and Yaoyao, and lays out mango metauniverse.
Risk tips
The macro-economy is less than the expected risk, the iteration and application of meta universe technology is less than the expected risk, and the policy risk.
