Review of market and sector trends: last week, the media sector index fell 0.52%, the Shanghai Composite Index fell 1.77%, the Shenzhen Component Index fell 0.95% and the gem index rose 1.81%. The top three gainers of the sector: Hangzhou Anysoft Information Technology Co.Ltd(300571) (+ 15.12%), Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) (+ 10.01%), Omnijoi Media Corporation(300528) (+ 9.29%); The top three declines in the sector: People.Cn Co.Ltd(603000) (- 6.57%), Focus Media Information Technology Co.Ltd(002027) (- 6.63%), Beijing Enlight Media Co.Ltd(300251) (- 6.33%). The NASDAQ China technology index rose 11.43% last week. The Hang Seng China enterprise index rose 4.33% last week.
One week’s view: the financial committee of the State Council held a meeting, and China concept stocks recovered. On March 16, the financial stability and Development Commission of the State Council held a special meeting. At present, the regulatory authorities of China and the United States have maintained good communication on China concept shares, made positive progress, and are committed to forming specific cooperation plans. The Chinese government continues to support all kinds of enterprises to list abroad. On the evening of March 18, president Xi Jinping and US President Joe Biden had a video call, which further weakened the concerns of intensified competition between the two countries. As of the closing of US stocks on Tuesday, popular Chinese stocks generally stopped falling and rose, and the NASDAQ China Jinlong index closed up nearly 5%. Although there is still performance pressure in the first half of 22 years, the high-level statement has alleviated the concern of short-term delisting of zhonggai shares, and there may be a repair opportunity after oversold in zhonggai sector.
The recurrence of the version number can be expected, and the overall value of the game sector is underestimated. In the news summary of the financial commission, it was mentioned that the relevant departments should improve the established plan according to the principles of marketization, legalization and internationalization, steadily promote and complete the rectification of large platform companies as soon as possible; Relevant departments should earnestly assume their responsibilities, actively introduce policies conducive to the market and carefully introduce contractionary policies. We should also promote the issue of edition numbers that the media are concerned about. At present, the version number application is still being accepted normally, It is recommended to pay attention to the leaders [Tencent (the glory of the king breaks the daily running record in the past five years since its overseas listing), Netease (the revenue of Guangyu in February increased by 41% month on month), Panax notoginseng (the fourth highest revenue of Chinese mobile game publishers in the world in ST2), the undervalued high-quality targets [yao ji, Zhejiang Century Huatong Group Co.Ltd(002602) (the subsidiary Diandian interaction ranked among the top 20 revenue of Chinese mobile game publishers in ST2 and became the only new manufacturer on the list) , G-Bits Network Technology(Xiamen)Co.Ltd(603444) , Xinxin company, Fuchun Technology Co.Ltd(300299) ].
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. Focus on the head [Tencent (ranking the top of the global revenue list of Chinese mobile game publishers in February), Netease], China [Panax notoginseng, perfection, G-Bits Network Technology(Xiamen)Co.Ltd(603444) , 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, Kunlun], Hong Kong stocks [heart, celadon, China mobile game, IgG, chizicheng technology], etc, VR technology [Silk Road, Hengxin, Jiachuang], etc.
3) film section, waiting for the opportunity of post epidemic repair. 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.
Tiktok, Kwai tiktok, 5) the electricity supplier and industry chain, focusing on the electronic business platform [Jingdong (Jingdong logistics acquisition of debbond, 140 new warehouses, 30 thousand outlets), a lot of spells, Ali (box to horse in line distribution to home service)] and live platform [vibrato (tiktok and overseas version TikTok2) gold suction month over 258 million US dollars; on-line local business service platform “jitter”, 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
