Core view
Last week, mysterious sea and new Batman were released one after another. The box office was slightly lower than expected when the operation of some cinemas in first tier cities was affected by the epidemic. “Mysterious sea” grossed more than 68 million on the 8th, and “new Batman” grossed more than 80 million on the 4th. In April, Chinese cinemas will also release “spirit Hotel 4” and “magical animals: Dumbledore’s Secret”. The IP and CASS of the film have great appeal in China, which will be the main reason to activate the box office in spring, but the box office scale is still affected by the follow-up epidemic prevention and control. On March 16, the English official tweet and Japanese official tweet of magic tower simultaneously released the recruitment announcement of CBT test (closed internal test). According to the information on the official website, Tencent levelinfinite will take over the agency rights of some overseas regions of magic tower. We are optimistic that listed game companies will inject performance vitality through category innovation and sea development. It is recommended to pay attention to G-Bits Network Technology(Xiamen)Co.Ltd(603444) (wonderful planning of leisure placement category + business operation of independent games), heart company (boutique game community + content social potential), Perfect World Co.Ltd(002624) (deep engine accumulation + category breakthrough audience expansion + magic tower going to sea). Social networking is the focus of the Internet giant with traffic in hand to attack the meta universe. There are also breakthrough opportunities for vertical needs such as acquaintance social networking, game social networking and drying social networking. It is recommended to pay attention to Inmyshow Digital Technology (Group) Co.Ltd(600556) (mature KOL marketing mode + social communication gene + 3D social application rainbow universe + official service provider of microblog Digital Collection), Visual China Group Co.Ltd(000681) (picture copyright moat + digital collection distribution platform). The logic of offline consumption recovery will be good for relevant targets. It is recommended to pay attention to Wanda Film Holding Co.Ltd(002739) (epidemic recovery bonus + good cost side + content business flexibility), Beijing Enlight Media Co.Ltd(300251) (content master control ability + cat’s eye distribution ability + China’s animation leader).
Risk warning: covid-19 epidemic prevention and control; Required consumer price; China’s regulatory policy; Overseas Internet market policy.
Market performance review: CITIC media index rose or fell – 4.26% throughout the week, outperforming Shenzhen Composite Index and ranking 12th among 30 CITIC primary industries. From the perspective of industry segments, the animation sector performed best last week, with CITIC’s tertiary index up or down 2.62%, followed by publishing, radio and television.
Industry highlights: Beijing Intellectual Property Court set up a new competition and monopoly Commission and released ten typical cases of competition and monopoly| The state film Administration issued the notice on strictly grasping the epidemic prevention and control work in cinemas| Tencent continues to make efforts in film and television short videos| Avatar 2 will be released on December 16, 2022| Deng Lun was fined 106 million for tax evasion| Jitter and Sohu reached two tiktok copyright cooperation, and won the two authorizations of all the films and TV works. Chou Guangyu, the chief executive of Kwai Fu International, has left. Amazon announced the completion of its $8.5 billion acquisition of MGM, a Hollywood film studio| Wandai Nanmeng palace announced that the cumulative global shipment of “Eldon law ring” sold on February 25 this year exceeded 12 million| Netease Sakura studio revealed that it is developing three masterpieces at the same time| “Celebrating more years” will be officially launched on March 25| Tencent pioneer cooperates with manufacturers to create customized cloud Game TV.
