Market Review
In the 11th week of 2022 (the actual trading day is 202203.14202203.18), the Shanghai stock index fell by 1.77%, the Shanghai and Shenzhen 300 index fell by 0.94%, and the gem index rose by 1.81%. The SW media index fell 0.64%, underperforming the gem index by 2.46pct, ranking ninth among the 28 industries in Shenwan level. Among the sub industries, Internet services, games and sports ranked among the top three, up 3.14%, 1.63% and 1.60% respectively.
Media industry data
As of March 19, 2022, the top three cinema films are “mysterious sea”, “new Batman” and “shuimen bridge of Changjin Lake”; The top three of webcast movies are “Di Renjie’s ghost contract”, “Chang Jin Hu” and “The Heaven Sword and Dragon Saber’s Joyoung magic”. The top three film and television dramas are “the illustrated book of hunting crime”, “please give more advice for the rest of your life” and “the world”; The top three variety shows are detective 7, ace to ace Season 7 and hello Saturday Co.Ltd(002291) ; The top three of animated cartoon are “the complete works of piggy page”, “the continent” and ” Perfect World Co.Ltd(002624) “. The top three best sellers of IOS games are “glory of the king”, “peace elite” and “crossing the line of fire: the king of gunfight”; The top three Android game hits are glory of the king, original God and tomorrow’s Ark.
Core view
This week, the State Information Office held a press conference on the “Qinglang” series of special actions in 2022, at which it pointed out ten key tasks: cracking down on Internet rumors, rectifying the chaos of information content of MCN institutions, rectifying the chaos in the field of webcast and short video, rectifying the chaos of application information services, further standardizing the communication order, comprehensively managing algorithms, rectifying the network environment during the Spring Festival and the network environment of minors in summer; Jitter, WeChat, Taobao and other tiktok App have been on the go to close the key, allowing users to close the personalized recommendation in the background.
We believe that the short video and live broadcasting industries have experienced several rounds of supervision before. This “Qinglang” proposed to focus on cracking down on the reward and profit-making of minors, which is a continuation of the newly revised law on the protection of minors, and the fundamentals of Internet enterprises have not changed for a long time; Mainstream applications allow users to turn off personalized recommendations one after another and actively cooperate with the requirements of the regulations on the administration of Internet information service algorithm recommendation, which reflects the gradual pursuit of sustainable development by Internet platform enterprises in the stage of regulatory normalization.
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 risks.
