Market Review
This week (from December 13, 2021 to December 17, 2021), the Shanghai stock index fell by 0.94%, the CSI 300 index fell by 1.99%, and the gem index fell by 0.94%. The SW media index rose by 6.30%, outperforming the gem index by 7.23pct, ranking second among the 28 industries in Shenwan level. Among the sub industries, sports, radio and television, advertising and marketing ranked the top three, 11.15%, 10.26% and 8.09% respectively.
Media industry data
As of December 17, 2021, the top three cinema films are manslaughter 2, the middle of the antique Bureau and fame; The top three webcast films are “Erlong Lake past: startling night”, “Anger: serious case” and “doomsday rescue”; The top three film and television dramas are “Luoyang in the wind”, “who is the murderer” and “female psychologist”; The top three in the variety show are exciting offer Season 3, time concert and director, please advise; The top three best sellers of IOS games are “peace elite”, “glory of the king” and “magic tower”; The top three hot Android games are magic tower, glory of the king and original God..
Core view
This week, the game Working Committee of China audio and digital Association released the report on China’s game industry in 2021. In 2021, the actual sales revenue of China’s game market was 296.513 billion yuan, with a year-on-year increase of 6.40%. The number of game users reached 666 million, with a year-on-year increase of 0.22%. The demographic dividend of the game tends to be saturated, but the protection of minors has achieved tangible results, and the user structure tends to be healthy and reasonable. China Network audio-visual program service association has issued the detailed rules for the review standard of network short video content (2021). Compared with the 2019 version, the new version of the detailed rules shall not add short video programs, etc. without authorization, it shall not cut and adapt various audio-visual programs and fragments such as movies, TV dramas and online film and television dramas And other contents, releasing the realization space of classic long video copyright on short video platform.
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 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” of the film, 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 cultural and tourism performance program producer committed to creating the output carrier of “cultural confidence”.
Risk statement
Regulatory policy uncertainty risk; Macroeconomic downside risk.
