Core view
Performance of media sector this week: outperforming CSI 300 and gem index. This week (March 21-march 25), the media industry fell 0.70%, outperforming the CSI 300 (- 2.14%) and the gem (- 2.80%). The concept of meta universe performed relatively well, with the top increases being st East network, Hubei Radio & Television Information Network Co.Ltd(000665) , Shunya International Martech (Beijing) Co.Ltd(300612) , Zhongchang Big Data Corporation Limited(600242) , Zhejiang Talent Television & Film Co.Ltd(300426) ; St aiger, St Changdong, St youjiu, St Chenxin, Shanghai Xinnanyang Only Education & Technology Co.Ltd(600661) ; Duzhe Publishing&Media Co.Ltd(603999) performed well, rising 8% this week, ranking the 8th in the industry. In terms of horizontal comparison, the media sector ranked 12th in terms of rise and fall among all sectors this week.
Key focus: the Interim Measures for the listing of overseas depositary receipts were issued, and the China US regulatory consultation continued to advance. On March 25, Shanghai Stock Exchange and Shenzhen Stock Exchange issued the Interim Measures for the listing and trading of depositary receipts interconnected with overseas stock exchanges, which shall come into force as of the date of promulgation. The measures point out that overseas issuers applying for the initial listing of Chinese depositary receipts need to meet the requirements that the average market value of overseas issuers calculated according to the closing price of basic shares 120 trading days before the date of issuance application shall not be less than 20 billion yuan; Listed on an overseas stock exchange for at least three years and other conditions for the listing period agreed by the CSRC and the overseas securities regulatory authority according to the market stratification of the place where the overseas basic stocks are listed. Finally, the number of Chinese depositary receipts applied for listing shall not be less than 50 million, and the market value of the corresponding underlying shares shall not be less than 500 million yuan.
In response to the audit draft, relevant parties said that the regulatory authorities of China and the United States are fully aware of each other’s concerns and are working towards each other to find solutions to the problems, so as to achieve effective and sustainable audit regulatory cooperation as soon as possible. After communication and coordination with relevant industry authorities, the CSRC has recently issued a no objection reply to Zhenkun bank and other enterprises planning to go to the United States for listing.
Industry trends: Amazon launched the meta universe game awscloudquest; Gamestop, a game retailer, plans to launch the NFT market by the end of July. Amazon launched a 3D web game awscloudquest, which allows players to browse virtual cities and help people solve real it technology problems through cloud computing. Gamestop, a US game retailer, said in its fourth quarter earnings report that it plans to launch the NFT market by the end of July.
Investment suggestions: 1) under the policy bottom, the industry that keeps optimistic about the overfall industry and some of the beneficial policies will be upgraded to the higher level. It is recommended that the leading Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Mango Excellent Media Co.Ltd(300413) and Focus Media Information Technology Co.Ltd(002027) of the subdivision sector should be recommended. The Hong Kong stock recommends fast, beep, bubble and other targets and the overall underrated game board (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) , Kwai company, etc.). 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) , Duzhe Publishing&Media Co.Ltd(603999) , 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) , Saturday Co.Ltd(002291) and other marketing industry chain targets.
Risk tips: regulatory policy risks; Performance risk; Goodwill and asset impairment risk.
