Latest viewpoint 1 In 2021, China’s game market was nearly 300 billion yuan and overseas revenue exceeded 100 billion yuan. On December 16, China audio and digital games working committee and China Game Industry Research Institute jointly released the report on China’s game industry in 2021. The report shows that the actual sales revenue of China’s game market in 2021 was 296.513 billion yuan, a year-on-year increase of 6.4%, and the growth trend is still stable; The overseas market still performed well. In 2021, the actual sales revenue of China’s independently developed games in the overseas market reached US $18.013 billion, a year-on-year increase of 16.59%. 2. Several marketing companies have entered the yuanuniverse track. Baidu xirang and Bluefocus Intelligent Communications Group Co.Ltd(300058) announced a strategic cooperation at the end of December this year. The two sides will work together to promote the organic integration of meta universe technology and marketing, take xirang virtual space as the cornerstone, jointly help brands establish new connections with consumers, explore new scenes and enable the evolution of marketing forms in the meta universe era; At the same time, Hylink Digital Solution Co.Ltd(603825) added the digital images of Jing Tian and angelababy to the Dior show, and launched the virtual image “Aimee” last year; Beijing Yuanlong Yato Culture Dissemination Co.Ltd(002878) also publicly stated that the company is committed to becoming the definer of gift metauniverse and will actively explore the commercialization path of metauniverse in the field of gifts. 3. Tencent’s “dividend distribution reduction” of jd.com on December 23, Tencent holdings announced that it would issue nearly 460 million class a ordinary shares of jd.com group to qualified shareholders by means of medium-term dividend distribution. The distribution benchmark is that for every 21 Tencent shares held, one class a ordinary share of jd.com will be issued. After the dividend, Liu qiangdong, who holds 13.5% of JD, will become the largest shareholder of JD. Meanwhile, Liu Chiping, President of Tencent, will also step down as a director of JD. At present, Tencent focuses more on the systematic upgrading and development of its main industries such as games, social networking and cloud, and the company’s investment strategy is to invest in companies in the development stage and exit when the investment company can raise funds by itself. Therefore, it is also in line with its development plan to exit JD, which is in the relatively mature stage. In addition, this move also avoids its monopoly risk in the field of e-commerce in the future to a certain extent.
Investment suggestions: in the long run, the game industry still has good growth. It is suggested to focus on those with excellent R & D capabilities: Tencent Holdings (0700. HK), netease-s (9999. HK), Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) (002555. SZ), ZuLong Entertainment (9990. HK) and heart company (2400. HK); China’s outbound social platform is developing well overseas, with increasing influence and leading role. It is suggested to pay attention to chizicheng Technology (9911. HK) and happy gathering (YY. O); In addition, policy dividends are continuously released to promote the high-quality development of cross-border e-commerce. It is suggested to pay attention to Alibaba SW (9988. HK) and sheen (unlisted); At present, some Chinese manufacturers have reached the international leading level in the short video area, and China’s Kwai Fu -W (1024.HK) is recommended.
Risk tips: the risk of intensified market competition, the risk of policy and regulatory environment, the risk of work content review or review, public health risk, etc.
