Market Overview: CITIC’s primary media sector fell 0.7% this week, and yuanuniverse sector was active again. 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. In the Hong Kong stock market, from the medium-term perspective, some Hong Kong stocks and zhonggai Internet targets are at historically low valuations. It is suggested to pay more attention from the perspective of fundamentals.
Views and recommended targets of the sector: 1) game sector: the current leading company has been pe12-16x for 22 years, focusing on the progress of version number distribution, the effectiveness of going to sea and the catalysis of new technologies such as VraR, 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.
This week’s special topic: raising VR sales target, China’s VR ecology ushers in a positive catalyst. Since the August 2021 high premium purchase of Pico, the byte beating has been continuously working at the marketing side, staffing and strategic cooperation level. VR tiktok has become the focus of the company’s strategy. From the jitter synthesis index, the “PicoNeo3” attention has exceeded the “Quest2” level. From the perspective of sales performance, Pico’s Spring Festival war report shows that the sales volume and sales volume of the omni-channel Spring Festival increased by 32 and 29 times year-on-year respectively, ranking the double champion of sales & sales volume of the omni-channel VR category. According to the latest information of “ar circle”, the company raised the sales target of VR in 22 years to 1.8 million units (previously 1 million units), which shows the company’s determination to develop the VR market. The ecology of China’s VR market may usher in a positive catalyst in 2022. It is suggested to pay attention to [ Hubei Radio & Television Information Network Co.Ltd(000665) , Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) , Wuxi Boton Technology Co.Ltd(300031) ] and leading game companies with strong R & D strength [ Perfect World Co.Ltd(002624) , Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , G-Bits Network Technology(Xiamen)Co.Ltd(603444) ].
Games: Tencent’s overseas game revenue increased by + 34% year-on-year, and Japan’s mobile game revenue reached a new high. 1. Tencent released Q4 performance. In 21q4, it achieved operating revenue of 144.19 billion yuan (YoY + 8%, QoQ + 1%), and non IFRS net profit of 24.88 billion yuan (yoy-25%, qoq-22%). In terms of game business, the revenue of mobile games increased by 9% year-on-year to 40 billion yuan; End game revenue increased by 4% year-on-year to 10.6 billion yuan. China’s game revenue is 29.6 billion yuan (YoY + 1%, qoq-12%); The game revenue in overseas market is 13.2 billion yuan (YoY + 34%, QoQ + 17%). 2. According to sensortower, Japan’s mobile game revenue reached $18.45 billion (YoY + 6.5%) in 2021, second only to the level of the United States. The total revenue of China Mobile Games, which are shortlisted in the top 100 of Japan’s best-selling list, is US $3.46 billion, accounting for 25.9% of the total revenue of the top 100, and Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) ‘s “Puzzles & survival” and “beauty of rivers and mountains” rank sixth / seventh. Yuancosmos: the VR / AR revenue of Shunyu optical technology was + 126% year-on-year. The Sixth Batch of acceptance list of yuancosmos industry committee was announced by yuancosmos Industry Committee.
1. Shunyu optical technology released its 2021 annual report, which disclosed for the first time that the revenue of AR / VR related products in 2021 was 1.345 billion yuan, an increase of 126% year-on-year. The VR / AR Business of the company includes optical devices, optical sensors and system modules.
2. On March 23, the yuan universe Industry Committee of China Mobile Communications Federation announced the Sixth Batch of acceptance list, including four Chinese listed companies, including Kingnet Network Co.Ltd(002517) , Capitalonline Date Service Co.Ltd(300846) , Hubei Century Network Technology Inc(300494) , Shenzhen L&A Design Holding Limited(300949) .
Risk tips: policy supervision risk, increased competition risk, and the impact of the epidemic exceeds the expected risk.
