Market Overview: CITIC’s primary media sector rose by 5.1% this week, and the yuan universe sector rose significantly, with high attention to the core target of virtual human. In the medium term, after experiencing the impact of intensive policies in 2021, the valuation of the media sector is at the bottom of history, but according to our calculation, The impact of the policy on the income of some industries (such as games and long video Membership Business) is limited. After the subsequent normalization, the fundamentals are strong, and the company is expected to restore stable performance growth. Individual stocks with good fundamentals for a long time have reached a better price position from the perspective of medium-term allocation. It is recommended that investors gradually pay more attention.
[game] Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) ranked among the top 5 mobile game publishers in China in 2021, and Perfect World Co.Ltd(002624) more than 15 million people reserved for magic tower. Tencent game released a new global brand level infinite, and the game globalization strategy went further. The brand has offices in the Netherlands and Singapore. Its first games include legend duel, famine: a new home, the edge of rebirth, Warhammer 40K: wave, Vampire: a blood family, photon, Tianmei studio Xinyou and other self issued products, including mobile games, end games and mainframe games. With the policy bottoming plate β It has bottomed out and subsequently entered the competition of individual stocks α At this stage, the continuous landing of the meta universe industry is also expected to improve the valuation of the game sector. Focus on the arrival of the performance inflection point. The company: [ Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) ] Q3 profit increased by 54.8% year-on-year, and Douluo mainland: soul master duel continued to be outstanding; [ Perfect World Co.Ltd(002624) ] magic tower was officially launched on December 16, and Q3 game business improved significantly month on month.
[metauniverse] a number of VR applications will be launched soon, and snapar platform users have more than 3.5 trillion views. The first version of fruit ninja VR2 was launched on the steamvr platform, and the VR version of cyberpunk 2077 is expected to be launched in January 2022. The meta virtual world horizonworlds is open to people over the age of 18 in the United States and Canada, and the VR content ecology continues to improve. Snapar officially announced that there are more than 250000 filter creators, developers and partners from more than 200 countries and regions on the platform, with more than 35000 views and one play. We believe that the meta universe is an ecological civilization system of virtual reality symbiosis and interconnection of all things. It is also the presentation form of the next generation Internet. Giants at home and abroad focus on the multi-dimensional ecological layout of software, hardware and content, and the continuous landing of industries has brought about a plate catalytic Market. Short term or partial theme investment. In the long term, there are a lot of investment opportunities in VraR, blockchain, virtual reality content production and other links. It is recommended to focus on high-quality companies with fundamental support and valuation flexibility: Visual China Group Co.Ltd(000681) , Wuxi Boton Technology Co.Ltd(300031) , etc.
[short video] influenced by China’s regulatory policies, the short video platform accelerated the layout of overseas live e-commerce business. China’s English tiktok is still on the move. The tiktok English station is recruiting Chinese cross-border sellers. The entry threshold requires that businesses must master the ability to live in English (or sign up in English). In August, tiktok continued to emphasize the need to expand cooperation with Shopify. Tiktok This week, Kwai Kwai has tested overseas live providers in Brazil. According to the power of billion state, the fast overseas Kwai has conducted live direct business tests in Brazil with the partners of the largest home appliance department store retailer CasasBahia, millet fitness wristband AmazFit, etc. Kwai users have been able to purchase goods directly in the live room. Latin America is the main battlefield for Kwai Kwai short video. The half of the 180 million 21Q2 users are from Latin America. Meanwhile, e-commerce in Latin America has a fast growth rate and high acceptance of cross-border goods, which is suitable for the attempt of live e-commerce realization. For the current short video industry, the traffic dividend has come to an end, and the advertising realization has gradually adapted to the new supervision. China’s live e-commerce sector still has a high vision, and going to sea may become a new driving force for user growth and commercialization. It is recommended that we focus on short video platform [fast technology], live Kwai MCN[ Saturday Co.Ltd(002291) ] and [ Jiangsu Zitian Media Technology Co.Ltd(300280) ].
Investment suggestions: the game section focuses on Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Perfect World Co.Ltd(002624) ; Video Kwai continues to recommend Mango Excellent Media Co.Ltd(300413) and fast technology. Key recommendations of live e-commerce Saturday Co.Ltd(002291) ; Bubble mat and Guangzhou Wahlap Technology Corporation Limited(301011) are recommended in the field of fashion play. The yuan universe plate focuses on Visual China Group Co.Ltd(000681) , Wuxi Boton Technology Co.Ltd(300031) .
Risk tips: policy supervision risk, increased competition risk, and the impact of epidemic situation exceeds the expected risk.
