Review of market and sector trends: last week, the media sector index rose 4.97%, the Shanghai Composite Index rose 2.19%, the Shenzhen Component Index rose 1.29% and the gem index rose 1.10%. The top three gainers in the sector: Fuchun Technology Co.Ltd(300299) (+ 23.18%), Visual China Group Co.Ltd(000681) (+ 17.47%), Shunya International Martech (Beijing) Co.Ltd(300612) (+ 16.04%); The top three declines in the sector: Guangzhou Wahlap Technology Corporation Limited(301011) (- 3.07%), Hangzhou Anysoft Information Technology Co.Ltd(300571) (- 2.74%), Thinkingdom Media Group Ltd(603096) (- 0.71%). Last week, the NASDAQ China technology index rose 1.95% and the Hang Seng China enterprise index rose 3.48%.
One week view: the yuan universe index fell 3.03% last week, and the performance of game and digital copyright [Fuchun (+ 23%), vision (+ 17%), xuanya (+ 16%) was relatively outstanding. The early April strategic point of view clearly mentioned that the meta universe sector is an important investment theme in the medium and long term. Recently, it has paid attention to the catalysis of VR head display volume, the promotion of digital copyright standards, China’s first “meta universe + party construction” publishing system and so on. In terms of hardware, according to the IDC report, the global shipment of AR / VR head display reached 11.23 million units in 2021, with a year-on-year increase of 92.1%. It is expected that the global shipment of VR head display will reach a growth rate of 43.6% in 22 years. China’s first “meta universe + party building” system has successfully landed in the smart party building space of the audio-visual publishing house of the National Academy of administration. In addition, Xiamen and other places have issued supporting plans to speed up the layout of meta universe industry. Continue to pay attention to the high relevance of metauniverse [ Three’S Company Media Group Co.Ltd(605168) , Visual China Group Co.Ltd(000681) , Fuchun Technology Co.Ltd(300299) (byte depth partner), yao ji, lanbiao (“blue universe” marketing space officially launched and settled in Baidu xiland), Zhewen Interactive Group Co.Ltd(600986) (company revenue yoy + 54.35% in 21 years, parent net profit yoy + 212%), Beijing Fengshangshiji Culture Media Co.Ltd(300860) ], etc. Continue to focus on the progress of version number, valuation and repair, including [Panax notoginseng, perfection, G-Bits Network Technology(Xiamen)Co.Ltd(603444) , Huatong, dianhun], etc.
Important progress has been made in the implementation of cross-border audit supervision consultation between China and the United States. After the regulatory pressure on China concept shares eases, it may usher in valuation repair, and the long-term investment value is prominent. After the CSRC said on March 31 that the overall talks with the U.S. accounting supervision commission (PCAOB) were smooth, on April 2, the CSRC issued the provisions on strengthening the confidentiality and archives management related to overseas securities issuance and listing of domestic and foreign enterprises (Draft for comments) (hereinafter referred to as the provisions), focusing on promoting cross-border listing regulatory cooperation and clarifying the information security responsibilities of overseas listing of domestic enterprises, The original statement that “the on-site inspection should be mainly conducted by Chinese regulators or rely on the inspection results of Chinese regulators” is deleted from the provisions. We believe that the introduction of the provisions is of great significance for the specific implementation of the consultation between China and the United States on the draft audit dialogue. The regulatory pressure faced by companies temporarily listed as “potential delisting” by the United States, such as [Baidu, futu and iqiyi], may be alleviated.
After the meeting of China’s policy supervision and Finance Committee, the rectification of the platform economy continued to advance, and the market response was stable. On March 30, the work conference on the supervision of online transactions of the general market supervision system of market supervision was held, focusing on the major issues of platform economic development, focusing on strengthening the top-level design and policy supply. On the same day, the state Internet information office and other three departments issued the opinions on further standardizing the profit-making behavior of webcast and promoting the healthy development of the industry, further guiding the profit-making behavior of webcast platforms, and making requirements on the responsibilities of webcast subjects, the registration and management of webcast accounts and the hierarchical and classified management of webcast accounts, and the performance of individual income tax withholding and payment obligations by webcast service institutions according to law, In the follow-up, we expect more measures to be implemented under the “traffic light”.
Key tips: 1) relatively high boom track, China stock market news, etc; Short video, Kwai Fu (21 year revenue earnings were all above expectations, GMV reached 680 billion yuan, Q4MAU reached 578 million), bytes (TIKTOK composite growth rate of advertising revenue reached 300%). Medium video [beep beep beep]; Technology [Xiaomi, baidu]; Long video [iqiyi, mango], etc; Online recruitment [boss direct employment], marginal improvement of real estate [shell], etc.
2) in the game sector, focus on the progress of version number recovery in the short term. Focus on the head [Tencent (No. 10 in the best seller list and No. 7 in the free list of returning to the Empire on April 1), Netease (Diablo: immortality opened an appointment on March 29 and is expected to go online on June 30, 22], China [Panax notoginseng, perfection, G-Bits Network Technology(Xiamen)Co.Ltd(603444) , Zhejiang Century Huatong Group Co.Ltd(002602) , giant, Fuchun, yao ji, Baotong, Caesar, Huali, Xinghui, Kunlun, Hangzhou Electronic Soul Network Technology Co.Ltd(603258) (dream of Three Kingdoms 2 appeared in the Asian Games video games)], Hong Kong stocks [heart, celadon, middle hand tour, IgG, ZuLong, chizi city], VR technology [Silk Road, Hengxin, Jiachuang], etc.
3) in the film section, the short-term epidemic affects the Qingming file, waiting for the opportunity of post epidemic repair. Focus on animation film leader [light], cinema and content composite leader [Wanda], Internet platform [cat’s eye], entertainment broker [Lehua entertainment], etc.
4) generation Z and community, maintaining high growth and high stickiness. Pay attention to [Bili], tide play [bubble mart, Chuang Meng, aofei], etc; Online reading and IP operation [reading], online Q & a community [Zhihu], online music [Netease cloud], etc.
5) the Kwai Tung business and industry chain, focusing on the electronic business platform [Jingdong (subsidiary Jingdong production and marketing to complete $800 million financing), a lot of competition, Ali (Taobao APP small range of WeChat payment function)] and live platform [tiktok, fast], industrial chain [ Saturday Co.Ltd(002291) , Yao Ji, force], marketing technology [sub division, blue label, vision], bytes benefit [ Three’S Company Media Group Co.Ltd(605168) , Zhewen Interactive Group Co.Ltd(600986) ]; Community retail [meituan, daily Youxian, dingdong], etc; WeChat eco electric SAAS [praise (fourth quarter 2021 non Kwai channel GMV growth of 30%, SaaS paid business number doubled), micro Union (2021 revenue 2 billion 686 million yuan, an increase of 36.4% over the same period)].
Risk warning: epidemic impact, economic and political environment risk, regulatory uncertainty, goodwill impairment risk
