We believe that the “meta universe” is a point of view. Due to the different positions of all parties, there are still differences on the constituent elements, realization path and final form of the meta universe. Just as Bill Gates described “what is the Internet” in 1995 and we imagined the future of the mobile Internet around 2010, no one can accurately predict the development of the Internet today – but with the progress of relevant technologies, the direction that the next generation Internet will bring more natural interaction, more immersive experience and more prosperous ecology is clear, We call this view and expectation “meta universe”.
Compared with PC Internet, mobile Internet has improved portability and more natural interaction mode, and its application scenario and total output value have been multiplied. In the process of transition from mobile Internet to meta universe, we have seen: 1) in terms of interaction mode, gesture sensing, motion capture, tactile feedback and even brain computer interface are expected to bring more natural interaction mode; 2) In terms of hardware terminals, the product form in the form of glasses will bring portability no less than that of mobile phones. According to the estimate of the CEO of Qualcomm, the sales volume of quest2 has reached 10 million units, and the development of VR in the consumer market may have reached an inflection point. In 2022, giants such as meta and Apple will launch XR new hardware; 3) In terms of content ecology and application scenarios, popular contents such as rhythm lightsaber and biochemical crisis 4 are constantly emerging, amplifying the advantages of VR interactive experience. The monthly flow is expected to exceed 50 million yuan; In addition, messenger call and other functions will be added in the version update of questv35. Other work and social scenario applications are also being rapidly enriched to further expand the use scenarios.
Enterprises committed to breaking the boundary between virtual and real and prospering the digital ecology are an integral part of the meta universe ecology. The current meta universe ecology is roughly divided into technology layer and application layer. 1) technology layer includes: bottom technology layer, middle technology layer and virtual world entrance; 2) The application layer includes: infrastructure in the virtual world and experience in the virtual world. Based on the sorting out of the layout ideas of the main metauniverse ecological companies, we believe that there are three entry points for the current layout of metauniverse: 1) from the next generation Internet hardware (represented by meta, apple, etc.); 2) Starting from the next generation software platform (represented by NVIDIA); 3) Starting from the next generation Internet platform (represented by roblox).
Investment suggestion: we are optimistic about the development opportunities brought by the gradual market consensus on the development of metauniverse and the giant’s increased investment in the ecological construction of metauniverse. Based on this, we give the industry a “recommended” rating. At present, the layout of A-share media companies is mainly concentrated in the application layer, such as virtual platform and immersive content, digital assets, digital identity and offline experience. Some companies also have layout in the technical layer, such as hardware entrance and 3D technology. We suggest paying attention to three types of Companies: 1) application type: the company’s business can provide a clear landing scenario for technologies and applications related to the meta universe; 2) Technology type: the company has the technical reserves required by metauniverse; 3) Content type: the penetration rate of VR hardware is expected to be further improved in 2022. The company has leading technical strength or related layout in VR content. Highlight Mango Excellent Media Co.Ltd(300413) (virtual host + virtual concert + VR application lab + Digital Collection), Visual China Group Co.Ltd(000681) (massive content + digital collection platform), Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) (XR + 3D rendering + immersive interaction + Digital twin), Bluefocus Intelligent Communications Group Co.Ltd(300058) (virtual human), Zhejiang Huace Film And Tv Co.Ltd(300133) (virtual human), Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) (investment and layout of VR content and hardware), Perfect World Co.Ltd(002624) (steam content platform + VR content + virtual human) Wuxi Boton Technology Co.Ltd(300031) (VR content), Hangzhou Electronic Soul Network Technology Co.Ltd(603258) (VR content), Col Digital Publishing Group Co.Ltd(300364) (copyright protection + virtual human), Oriental Pearl Group Co.Ltd(600637) (metauniverse content production base + copyright protection), etc.
Risk tips: regulatory policy risk, risk that related technology development is less than expected, risk related to public opinion, risk of market style switching, risk that users’ acceptance of VR is less than expected, focusing on the uncertainty risk of the company’s future performance. Companies outside China are not fully comparable, and relevant data and materials are for reference only.
