Market Review
The 10th week of 2022 (the actual trading day is 202203.7-202203.11)
The Shanghai stock index fell 4.00%, the Shanghai and Shenzhen 300 index fell 4.22%, and the gem index fell 3.03%. The SW media index fell 4.14%, underperforming the gem index by 1.11pct, ranking 11th among the 28 industries in Shenwan level. Among the sub industries, publishing, games and advertising marketing ranked among the top three, up 0.72%, down 3.58% and down 4.39% respectively.
Media industry data
As of March 12, 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 of the webcast movies are “The Heaven Sword and Dragon Saber’s Joyoung magic”, “Chang Jin Hu” and “Di Renjie’s divine contract”. The top three film and television series are “the world”, “Shangshi” and “meet in season”; The top three in the variety show are “detective 7”, “ace to ace Season 7” and “shining band”; The top three of the animated cartoon are “the complete works of piggy page”, “the continent of the bull” and “the first seasons of the sword”. The top three best sellers of IOS games are “glory of the king”, “original God” and “peace elite”; The top three Android game hits are glory of the king, original God and tomorrow’s Ark.
Core view
This week, the US Securities Regulatory Commission said that based on the foreign company Accountability Act, it delisted five China concept companies, including Baiji Shenzhou, yum China, zaiding pharmaceutical, shengmei semiconductor and Hehuang pharmaceutical, and China concept shares fell sharply. The act actually requires enterprises to bypass the China Securities Regulatory Commission and publicly submit the core data and user information in the audit draft to the United States, which has aroused the market’s concern that a large-scale delisting and delisting of zhonggai shares and switching to Hong Kong stocks will lead to the collapse of the market value. The CSRC announced that it was working with the Ministry of finance to continue communication and dialogue with the public company accounting oversight board (PCAOB) and made positive progress.
We believe that in the face of uncertainty, the attitude of Chinese and American regulators is the key.
With the CSRC’s statement that it is actively carrying out dialogue and is willing to solve the regulatory problems of the United States through regulatory cooperation, the general direction of mutual opening and integration of China and the United States capital markets remains unchanged; With the gradual normalization of platform supervision, the long-term fundamentals of equity companies in the Internet have not changed.
Investment advice
We continue to pay attention to the game sector and recommend the head game R & D manufacturers with low valuation Perfect World Co.Ltd(002624) , Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , waiting for the recovery of the version number policy; In terms of China concept shares, the beneficiaries include industry leaders with stable core business and low valuation, Tencent holdings, Tencent music and Netease; In terms of radio and television sector, the targets clearly benefiting from the integration of the first network include Guizhou Bc&Tv Information Network Co.Ltd(600996) , Wasu Media Holding Co.Ltd(000156) , Gehua online, Oriental Pearl Group Co.Ltd(600637) , Jiangsu Broadcasting Cable Information Network Corporation Limited(600959) , etc; In the film sector, it is suggested to pay attention to the high-quality film and television copyright company Beijing Jetsen Technology Co.Ltd(300182) , which signed a film and television copyright contract of 1.8 billion yuan with Tencent. Its digital cinema and new media copyright business directly benefit from the film’s 14th five year plan; 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 risk
