Market Overview: CITIC’s primary media sector fell 0.52% this week. After years of intensive policy influence, the A-share media sector has obvious valuation advantages. The Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) trend such as yuancosmos is expected to bring marginal business increment. Individual stocks with good fundamentals for a long time have reached a better price position from the perspective of medium-term allocation. The Hang Seng technology index rose 5.6% this week. The special meeting of the State Council boosted the confidence of Hong Kong stocks. At present, some Internet targets of Hong Kong stocks are at historically low valuations, so it is suggested to pay more attention.
Views and recommended targets of the sector: 1) game sector: the current leading company has been pe12-15x for 22 years, focusing on the progress of version number distribution and the effectiveness of going to sea, with key targets [ Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Perfect World Co.Ltd(002624) , G-Bits Network Technology(Xiamen)Co.Ltd(603444) ]; 2) Video segment: focus on the realization of high-quality content and the change of industry pattern, focusing on [ Mango Excellent Media Co.Ltd(300413) ]; 3) Metauniverse sector: some correction in the short term, focusing on the landing of industries in NFT / virtual human / VraR and the fulfillment of corporate financial reports, with key targets [ Visual China Group Co.Ltd(000681) , Hylink Digital Solution Co.Ltd(603825) , Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) , Bluefocus Intelligent Communications Group Co.Ltd(300058) ]. 4) Hong Kong stocks: recommend the Kwai TSU to enhance the efficiency and promote the platform business with narrowed losses.
Game: in February, the revenue of the game market increased slightly year-on-year, and the overseas test of the international version of magic tower was opened.
1. According to the latest report of Gamma data, the actual sales revenue of the game market in February 2022 was 21.627 billion yuan, a year-on-year increase of 2.03% and a month on month decrease of 2.76%. The actual sales revenue of China’s independently developed games in overseas markets was US $1.446 billion, a year-on-year increase of 9.46% and a month on month decrease of 9.36%. The decline in income is mainly due to: 1) the high opening base of spring festival activities last month; 2) Xinyou performed poorly.
2. The international version of Perfect World Co.Ltd(002624) game “magic tower” will be closed beta tested in the United States, Canada, Japan, the United Kingdom and Germany in April, and will be distributed by Tencent levelinfinite. The brand reserves and issues other products, including legend duel, famine: a new home, etc.
3. In February 2022, Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) “Puzzles & survival” and “song of Cloud City” ranked 4th and 16th respectively in the list of sensortower’s Chinese mobile travel to the sea. The overseas revenue of “song of cloud going to the city” increased by 19% month on month in February, and entered the top 5 of the best-selling list of mobile games in South Korea in February. The revenue of the new Japanese version launched in February increased steadily.
4. The regulations on the protection of minors’ networks (Draft for comments) once again solicited public opinions, proposing that service providers such as online games, videos and social networking should set up youth mode for minors, provide services in accordance with national regulations and standards in terms of use time, duration, function and content, and reasonably limit the single consumption amount and cumulative consumption amount of minors in a single day.
Yuancosmos: Mango TV will launch the digital collection platform, and instagram will introduce NFT.
1. Mango TV has completed the deployment of its own blockchain. It is expected to launch the digital collection platform based on Guangguang chain in mid March, which is the first time for enterprises with state-owned background to set foot in the digital collection platform business.
2. Zuckerberg revealed that NFT is expected to enter instagram platform in the future, and users can create NFT in the application. Previously, twitter established NFT as a avatar with open member users, and NFT has been gradually applied in social platforms.
Tide play blind box: 315 party pays attention to the irrational consumption of minors, and bubble Mart responded positively.
China Central Television’s “315 in action” program reported industrial chaos such as falsely high commodity prices and inducing excessive consumption. Paopaomat responded that 1) it will suspend the customized blind box business in the food industry to eliminate waste (for the previous joint blind box event between dimoo and KFC); 2) Continue to increase investment in process quality and quality control in the future; 3) Will not participate in the second-hand market in any form (for the problem that the second-hand market price of some blind boxes far exceeds the cost price).
Risk tips: policy supervision risk, increased competition risk, and the impact of the epidemic exceeds the expected risk.
