Market this week: the media sector rose 0.09% this week, Outperformed gem (- 3.35), CSI 300 (- 1.99%), and SME board (- 1.27%), the decline of the sector is located in the middle reaches of the whole industry. From the perspective of various media segments, the sub sector’s information search and aggregation rose the first this week, with 3.55%. Radio and television rose the second, with 3.24%. Internet film and television audio rose the third, with 2.25%. According to the classification of China CITIC Bank, as of the closing on December 17, 2021, the media sector’s index has increased by 3.00% since the beginning of the year The price earnings ratio of the block is 31.66.
In 2021, the global game revenue was 180.3 billion, a year-on-year increase of 1.4%. On December 22, foreign media games industry released the 2021 global game industry report, In 2021, the global game revenue was USD 180.3 billion (about RMB 1149 billion), up 1.4% year-on-year. By platform, the proportion of game revenue was as follows: mobile terminal: 45%, revenue of USD 81.5 billion (519.36 billion), up 8.0% year-on-year; host terminal: 28%, revenue of USD 50.4 billion (321.17 billion), down 6.6% year-on-year; PC terminal: 20%, revenue of USD 36.7 billion (233.87 billion), a year-on-year decrease of 0.8%; physical board games: 7%, revenue of US $11.7 billion (74.56 billion), a year-on-year increase of 2.6%; global mobile games revenue top 5 (January to December 7, 2021, including app store and Google play, excluding third-party app store, only IOS end in China): glory of the king: US $2.8 billion; pubg: Mobile Games: US $2.8 billion; original God : USD 1.8 billion; Roblox: $1.3 billion; Master of gold coins: $1.2 billion; Global mobile game revenue publisher top5: Tencent: $7.3 billion; Netease: $3.1 billion; Activision Blizzard: $2.6 billion; Playrix: $2.5 billion; Zynga: $2.1 billion.
The first domestic meta universe Baidu “xirang” officially opened the internal test: it took the lead in realizing the interaction of 100000 people on the same screen and became a partner with NVIDIA. On December 21, the first domestic meta universe product “xirang” released by Baidu officially opened the directional internal test. Users can enter xirang space for advanced experience with the invitation code. Baidu said that “xirang” will be open to all users on December 27. At that time, Baidu create2021 will be held in “xirang”, which is the first large-scale conference held in the meta universe in China. On the 26th, Baidu and NVIDIA reached an agreement to jointly build Ai meta universe.
Visual China Group Co.Ltd(000681) release the “meta vision” visual art digital collection platform. Official website (NFT. 500px. Com.. CN.) and applet (meta vision Collection) went online on December 26, 2021. The meta vision platform launched by the company realizes the online ownership of digital works through the blockchain, and the work owner and work information are stored on the chain to ensure that the data cannot be tampered with; at the same time, the original digital works are transformed into unique digital collections on the blockchain, and every change of ownership of digital collections can be recorded On the blockchain, it greatly promotes the trading and circulation of digital collections. Blockchain technology makes digital collections identifiable, easy to flow and tradable.
Manslaughter 2 went online for a week, with a cumulative box office of 724 million. The movie “manslaughter 2”, produced and distributed by Wanda film and television, has been on-line for a week, with a cumulative box office of 724 million and a ticket purchase score of 9.0 points.
Embracer Group acquired Perfect World Co.Ltd(002624) entertainment with us $125 million, and Perfect World Co.Ltd(002624) ushered in the adjustment of business structure. On December 21, embracer Group officially announced that it had reached an agreement with Perfect World Co.Ltd(002624) European private Co., Ltd. to acquire 100% shares of Perfect World Co.Ltd(002624) North America company and Perfect World Co.Ltd(002624) issuance private Co., Ltd. (both collectively referred to as Perfect World Co.Ltd(002624) entertainment, hereinafter referred to as PWE). In this acquisition, embracer group will pay US $125 million at one time, including US $60 million in cash and US $65 million in B-Shares of embracer group. The transaction is expected to be completed in February 2022.
Investment suggestions:
Our recent proposal focuses on the commercialization of virtual human and the investment trend of NFT industry.
Virtual human field: we believe that virtual human is one of the representations of digital assets in the future. With the emergence of super realistic virtual human, it has the opportunity of business value revaluation. We divide virtual human into five categories: super realistic virtual human, two-dimensional virtual human, film and television virtual human, functional virtual human and character digital separation. The commercialization of virtual human can be divided into four directions: (1) IP commercialization of super realistic virtual human, such as advertising endorsement; (2) brand customized virtual human, such as brand virtual human image and virtual live broadcasting demand; (3) peripheral product development of virtual human, such as online digital assets and offline physical goods; (4) In the future, C-end virtual human image needs. It is suggested to pay attention to three main lines of virtual human investment: (1) related companies with virtual human IP operation ability: Mango Excellent Media Co.Ltd(300413) ; (2) digital marketing companies with rich advertiser resources: Bluefocus Intelligent Communications Group Co.Ltd(300058) , Hylink Digital Solution Co.Ltd(603825) , Zhewen Interactive Group Co.Ltd(600986) ; (3) related companies that can provide virtual human creation technical support: Beijing Jetsen Technology Co.Ltd(300182) .
NFT: we think the future is based on Web 3 0, which can be read, written and owned by users will become the mainstream development trend. The uniqueness and non tampering and copying of blockchain technology is conducive to the copyright confirmation of digital assets. NFT is the core embodiment of digital assets on the chain and can be bound with commodities in real life. It is suggested to focus on two main lines of NFT Investment: (1) companies with NFT online platform operation capability: Visual China Group Co.Ltd(000681) ; (2) related companies with content copyright that can launch NFT digital assets: Beijing Enlight Media Co.Ltd(300251) , Alpha Group(002292) , Zhejiang Huace Film And Tv Co.Ltd(300133) .
At the same time, we continue to suggest paying attention to four types of industry investment opportunities: 1) pay attention to the game sector with clear online rhythm and policy trend of new games, and the short-term theme investment is highly catalytic. Key recommendations: Perfect World Co.Ltd(002624) , Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Netease, heart company, G-Bits Network Technology(Xiamen)Co.Ltd(603444) ; 2) It is recommended to pay attention to Focus Media Information Technology Co.Ltd(002027) , Mango Excellent Media Co.Ltd(300413) for the leading companies that are currently in the undervalued range, have a certain safety cushion, and the competitive strength of the company’s business in the industry continues to increase; 3) For industries in line with the entertainment consumption trend of young people, such as trendy play and script killing, it is recommended to pay attention to bubble mart; (4) Near the end of the year and the Spring Festival next year, the film market is active. It is recommended to pay attention to Wanda Film Holding Co.Ltd(002739) , Beijing Enlight Media Co.Ltd(300251) .
Risk tip: the risk of content online performance not meeting expectations, the risk of intensified industry competition, policy risk, uncertain development of emerging industries and high valuation.
