Market Review
In the 8th week of 2022 (the actual trading day is 202202.21202202.25), the Shanghai stock index fell 1.13%, the Shanghai and Shenzhen 300 index fell 1.67% and the gem index rose 1.03%. The SW media index fell 4.26%, underperforming the gem index by 5.28pct, ranking 26th among the 28 industries in Shenwan level. Among the sub industries, radio and television, Internet services and publishing ranked among the top three, with declines of 0.33%, 1.39% and 3.24% respectively.
Media industry data
As of February 25, 2022, the top three cinema films are “shuimen bridge of Changjin Lake”, “the killer is not too calm” and “miracle stupid child”; The top three webcast films are “Changjin Lake”, “Li Mao as Prince” 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 in the variety show are detective 7, half familiar lovers and shining band; The top three of animated cartoon are “the complete works of piggy page”, “the continent of daros” and “the master of Wu Shen”. The top three best sellers of IOS games are “glory of the king”, “peace elite” and “dream journey to the west”; The top three Android game hits are glory of the king, original God and tomorrow’s Ark.
Core view
This week, the rumor of “stopping issuing game version number in 2022” hit the game stocks, which was later proved untrue. Relevant people indicated that they were still receiving the version number application of the game company normally (news source: Sina Finance and Economics); The national development and Reform Commission and other departments issued several policies on promoting the recovery and development of difficult industries in the service industry, and proposed to guide the Internet platform to reduce the service fee standard of merchants. The game is the earliest landing scene in the meta universe business. At present, there is no major policy shift in game supervision. It is suggested that investors pay attention to the relevant targets with low valuation, stable performance and layout to the sea; Lowering the service fee standard of Internet platform is a phased policy for areas with serious epidemic. Relevant practice has been carried out before. It is expected that the policy regulation will cooperate with financial subsidies, which will not have much impact on the fundamentals in the long run.
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 the 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 Beijing Jetsen Technology Co.Ltd(300182) ‘s digital cinema and new media copyright business will benefit directly; In other sectors, it is recommended that the leading digital cultural and creative exhibition company Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) benefiting from the “cultural foundation” and the large-scale cultural and tourism performance program manufacturer Beijing Fengshangshiji Culture Media Co.Ltd(300860) , which is committed to building the output carrier of “cultural confidence”.
Risk tips
Regulatory policy uncertainty risk; Macroeconomic downside risks.
