Review of market and sector trends: last week, the media sector index fell 4.26%, the Shanghai Composite Index fell 4.00%, the Shenzhen Component Index fell 4.40%, and the gem index fell 3.03%. Top three gainers in the sector: Hengxin Shambala Culture Co.Ltd(300081) (+ 5.04%), Fuchun Technology Co.Ltd(300299) (+ 4.29%), Omnijoi Media Corporation(300528) (+ 3.92%); The top three declines in the sector: Songcheng Performance Development Co.Ltd(300144) (- 14.76%), People.Cn Co.Ltd(603000) (- 13.43%), Xinhuanetco.Ltd(603888) (- 10.52%). Last week, the NASDAQ China technology index fell 13.43% and the Hang Seng China enterprise index fell 8.15%.
One week view: the overall correction of the market was obvious last week, and the yuan universe sector index fell 4.54%. The investment and financing related to yuancosmos has remained active. Yuancosmos interactive social platform “oasis” has recently completed a round B financing of tens of millions of dollars, and the blockchain game mirroworld has completed a financing of 4 million dollars. In addition, members of the National Committee of the Chinese people’s Political Consultative Conference proposed to formulate the supervision law of yuancosmos in advance at the two sessions. We believe that yuancosmos is cost-effective after adjustment, focusing on companies with clear A-share related businesses and certain performance support, such as [ Three’S Company Media Group Co.Ltd(605168) , yao ji, BLUEMARK, vision, Zhewen Interactive Group Co.Ltd(600986) , Fengshang, etc.].
On March 10, the securities and Exchange Commission of the United States listed five companies including Baiji Shenzhou in the tentative list of “scheduled delisting” in accordance with its previously issued “foreign company Accountability Act” (hfcaa). Affected by this, China concept shares fell sharply. That night, the CSRC responded that it was firmly opposed to the politicization of securities regulation. The next day, China and the United States regulators have held active dialogue on audit supervision cooperation and are expected to reach a consensus as soon as possible. Superimposed on the previous tense situation in Russia and Ukraine, the Fed’s expectation of raising interest rates, China’s regulatory concerns and other factors, the hfcaa event further catalysed market sentiment. It indicates that we are clearly concerned about the marginal expected improvement of China’s regulatory policy after the Federal Reserve 315 and the two sessions.
During the performance period of zhonggai shares, [JD (21q4 revenue yoy + 23.0%, adjusted net profit attributable to shareholders (nongaap) 3.56 billion, yoy + 49.2%), futu (21q4 revenue yoy + 35.1%, adjusted net profit of HK $533 million)]. Under the repeated epidemic situation, the relevant working group of the State Council held covid-19 epidemic prevention and control meeting, resolutely avoided the further expansion of the epidemic scale, promoted the implementation of antigen self-test program, and opened a new situation of prevention and control. Concerned about the progress of epidemic prevention and the expected impact on the Internet and consumer sectors, Zhongyu shares were extremely pessimistic, and the valuation cost performance gradually reflected after the decline. Key tips: 1) relatively high boom track, China stock market news (revenue of 13.094 billion in 2021, yoy + 58.9%, net profit attributable to parent company of 8.553 billion, yoy + 79.0%); Short video [Kwai Fu (22Q1DAU is expected to exceed Bloomberg consensus 338 million)]; Medium video [beep beep beep]; Scientific and technological innovation [Xiaomi (negotiating with Indian manufacturers to produce mobile phones locally and export them to the world], baidu]; Long video [mango], etc; Online recruitment [boss direct employment (announcing a $150 million stock repurchase plan)], real estate margin improvement [shell (21q4 achieved revenue of 17.8 billion and adjusted net profit of 42 million)], etc.
2) in the game sector, focus on the progress of the recovery of the version number after the two sessions in the short term. Sensortower announced that in February 22, Chinese mobile game publishers were shortlisted as the top 100 global publishers in terms of revenue, and 36 companies attracted a total of US $2 billion (accounting for 37.9%). Focus on the head [Tencent (ranking first in the global revenue list of Chinese mobile game publishers in February), Netease], China [Panax notoginseng, perfection, G-Bits Network Technology(Xiamen)Co.Ltd(603444) (No. 5 in the best seller list of Yinian Xiaoyao on the 11th), Zhejiang Century Huatong Group Co.Ltd(002602) , giant (the joint-stock subsidiary jukun network plans to sell playtika shares), Fuchun, Yaoji, Baotong, Caesar, Huali, Xinghui and Kunlun], Hong Kong stocks [heart, celadon, middle hand travel, IgG, chizicheng technology], VR technology [Silk Road, Hengxin, Jiachuang], etc.
3) film section, focusing on post epidemic repair opportunities. Focus on animation film leader [light (the film “sniper” brings about 185205 million revenue)], cinema and content composite leader [Wanda], Internet platform [cat’s eye], entertainment broker [Lehua Entertainment (formally submitting listing application to the Hong Kong Stock Exchange)].
4) generation Z and community, maintaining high growth and high stickiness. Pay attention to [Bili], trendy play [bubble Mart] and [Chuang Meng, aofei], etc; Online reading and IP operation [reading], online Q & a community [Zhihu], online music [Netease cloud], etc.
5) e-commerce and industrial chain, Tiktok tiktok tiktok (Jingdong) (Jingdong logistics acquisition of debbond, 140 warehouses, 30 thousand business outlets), a lot of spells, Ali (box horse in the vicinity of on-line distribution service) and live platform [vibrato (Kwai) and overseas version TikTok2 month suction gold over 258 million; on-line local business service platform “shaking guests”, fast hand] Industrial chain [ Saturday Co.Ltd(002291) , yao ji, gravity], marketing technology [focus, blue label, vision], etc., byte benefit [ Three’S Company Media Group Co.Ltd(605168) , Zhewen Interactive Group Co.Ltd(600986) ], etc; Community retail [meituan, daily Youxian, dingdong], etc; Wechat ecological e-commerce SaaS [youzan (Merchant Collection code function of its wangxiaodian products online), wechat alliance].
Risk warning: epidemic impact, economic and political environment risk, stricter supervision, goodwill impairment risk
