Industry core view:
Media industry last week (Shen Wan) rose 4.74%, ranking fourth in the market, outperforming Shanghai and Shenzhen 300. Celadon game is planned to be listed on the Hong Kong Stock Exchange on December 16. We believe that the reason for the frequent popularity of celadon game mobile games lies in the deep cultivation of the community model, focusing on the high stickiness and strong retention of users, so as to prolong the vitality of the game and broaden the market space of new games. At the same time, the company will make efforts in the overseas market, or Impact on China’s overseas game market. The open beta of horizon worlds, a VR social platform of meta, is an important step in the journey to the meta universe. We believe that although the construction of meta meta universe has taken shape, the construction of content ecology needs to be strengthened, and we will continue to pay attention to the further process. Key investment points:
Game: 1) celadon game starts the offering and is planned to be listed on the Hong Kong Stock Exchange on December 16. It plans to issue 85 million shares, which are expected to be listed on the main board of the Hong Kong Stock Exchange on December 16, with the stock code of “6633”. 2) Tencent launched the overseas brand level infinite to race the global track. On December 8, Tencent game officially announced the launch of the overseas brand level infinite, which aims to bring consistent high-quality game experience to overseas players. Level infinite will release game masterpieces produced by Tencent game studios and other third-party studios. At the same time, based on the international business layout, level infinite will also provide a series of support and services for overseas cooperative Studios: from technical empowerment to R & D support, From “service-oriented games (GaAs)” to global market insight, it also includes the ability of E-sports event system and global multi regional distribution. 3) TGA Award List: the best of the year for “travel for two”, the best mobile game for “original God”, and a large number of new games. In this year’s TGA, the award for the best game of the year was finally awarded by the popular “travel for two” Once launched, this game, which was launched in March this year, has been greatly loved by players, realizing a double harvest of word-of-mouth sales. In addition, the original God produced by MIHA you won the best mobile game award, the League of heroes was again selected as the best e-sports game of the year, and the 2021 global finals of the League of heroes was selected as the best E-sports event of the year.
Internet applications: 1) horizon worlds, a VR social platform of meta, is open for public beta, and users in North America can download it for free. Meta announced on December 9 that its VR world “Horizon worlds” was officially opened. Users in the United States and Canada aged 18 and over can register and log in by wearing oculus quest 2vr head display. In horizon worlds, oculus virtual reality headset users can create an avatar without legs, wander around the virtual world, interact with other users’ avatars and play games together.
Investment suggestions: 1) game field: H1 most manufacturers’ revenue declined due to the high base last year. It is suggested to pay attention to the individual stocks in the product line that are developed for new generation users, have well-known IP, high expectation and good test feedback. 2) Film and television theaters: focus on stocks with strong content IP commercialization ability. Diversified high-quality theaters may be the focus of the development of film and television drama and video industry.
Risk factors: stricter regulatory policies, delayed launch and performance of Xinyou less than expected, increased risk of overseas business, less than expected integration of State Grid, repeated epidemic risk and goodwill impairment risk
