Core view
This week’s performance of the media sector: outperforming Shanghai and Shenzhen 300 and losing the gem index. This week (March 14-march 18), the media industry fell 0.52%, outperforming CSI 300 (- 0.94%) and losing the gem index (1.81%). Among them, the top gainers are Everyday Network Co.Ltd(300295) , Zhejiang Juli Culture Development Co.Ltd(002247) , Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Omnijoi Media Corporation(300528) , etc; St Chenxin, Zhejiang Talent Television & Film Co.Ltd(300426) , Shanghai Longyun Cultural Creation & Technology Group Co.Ltd(603729) , Qitian Technology Group Co.Ltd(300061) , and St youjiu were the top decliners. In terms of horizontal comparison, the media sector ranked sixth in terms of rise and fall among all sectors this week. The ranking was significantly improved compared with last week, and some industry leaders performed prominently.
Key concerns: the meeting of the financial committee pointed out that the contractionary policy should be introduced carefully, and the national antitrust work conference was held. On March 16, the financial stability and Development Committee of the State Council recently held a special meeting, emphasizing that at present, the regulatory authorities of China and the United States have maintained good communication, have made positive progress, and are working to form a specific cooperation plan. The Chinese government continues to support all kinds of enterprises to list abroad. The meeting mentioned that with regard to platform economic governance, we should steadily promote and complete the rectification of large platform companies as soon as possible through standardized, transparent and predictable supervision, so as to promote the stable and healthy development of platform economy and improve international competitiveness. Actively introduce policies that are beneficial to the market and prudently introduce contractionary policies.
On March 17, the anti-monopoly work conference of the national market supervision system was held. The conference pointed out that the anti-monopoly work achieved remarkable results in 2021, new breakthroughs were made in the law enforcement of key areas and major cases, and new progress was made in the construction and implementation of the fair competition policy system. In 2022, the anti-monopoly work should adhere to the principle of “stability first, seeking progress while stability”, adhere to the “two unwavering”, and promote macroeconomic stability, promote high-quality development and protect the interests of the people with standardized, transparent and predictable supervision.
Industry trends: instagram is expected to introduce NFT; Adobe has launched several tools for AR and VR applications in the original and future. Mark Zuckerberg, CEO of meta, said at the south by Southwest art festival that he was trying to introduce NFT into instagram in the short term. Adobe has launched 3D content creation products including Adobe substance 3D and adobe Aero, as well as service platforms including Adobe creative cloud and adobe experience cloud, to help creators create AR and VR experiences in the metauniverse.
Investment suggestions: 1) under the policy bottom, the Kwai Chung industry will continue to be optimistic about the overtaking industry and some of the sectors that benefit from the improvement of policies will be upwards. The Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Mango Excellent Media Co.Ltd(300413) and Focus Media Information Technology Co.Ltd(002027) will be recommended. The Hong Kong stocks will focus on the fast, beep, bubble and other game boards (recommended Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , G-Bits Network Technology(Xiamen)Co.Ltd(603444) , Shanghai Yaoji Technology Co.Ltd(002605) , and other targets). 2) The theme of yuancosmos has been fully adjusted, and it is expected to run through the whole year in the medium and long term. The segmentation continues to be optimistic: a) the game valuation and performance continue to improve, recommend Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , G-Bits Network Technology(Xiamen)Co.Ltd(603444) , and pay attention to Zhejiang Century Huatong Group Co.Ltd(002602) , Shanghai Yaoji Technology Co.Ltd(002605) and other targets; b) As an important carrier of the meta universe, VR is expected to accelerate its application, focusing on Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) , Hangzhou Shunwang Technology Co.Ltd(300113) , etc; c) NFT of digital assets is expected to generate more application fields, focusing on Visual China Group Co.Ltd(000681) , Zhejiang Huace Film And Tv Co.Ltd(300133) , Fubo group, etc; d) Virtual digital people usher in the application outlet, bottom marketing companies and film and television content companies usher in the possibility of upward valuation, and pay attention to Bluefocus Intelligent Communications Group Co.Ltd(300058) , Three’S Company Media Group Co.Ltd(605168) and other marketing industry chain targets.
Risk tips: regulatory policy risks; Performance risk; Goodwill and asset impairment risk.
