In March, it outperformed the market performance, and yuanuniverse performed better. In March, the media sector (CITIC media index) fell by 3.74%, outperforming the CSI 300 index by 4.10 percentage points. Among the 30 industries at CITIC level, the media sector ranked seventh. On the performance of individual stocks, Everyday Network Co.Ltd(300295) , Shunya International Martech (Beijing) Co.Ltd(300612) , Hubei Radio & Television Information Network Co.Ltd(000665) , Col Digital Publishing Group Co.Ltd(300364) , Time Publishing And Media Co.Ltd(600551) , etc. performed well; St egger, St Changdong, St youjiu, Focus Media Information Technology Co.Ltd(002027) etc. led the decline.
In terms of theme, the overall performance of metauniverse (NFT) is good, and the game sector has also performed well since the middle of the year.
Focus on NFT theme opportunities. 1) NFT (irreplaceable token) is “an encrypted digital proof of rights and interests based on blockchain technology, which maps physical assets such as physical collections and virtual assets such as images, music and game props”. In 2021, the market value of global NFT reached US $16.891 billion, with a year-on-year increase of 4440%. In 2021, the trading volume was US $17.695 billion, with a year-on-year increase of 21350%. NFT is ushering in high-speed development all over the world; 2) Subject to regulatory and other factors, China’s NFT market is dominated by collection attributes; If China opens up secondary market transactions in the future, China’s NFT market will be about 29.8 billion in 2026, which has significant growth based on the current low market scale; 3) In the long run, the model of the cultural exchange is expected to open up the trading mechanism of China’s NFT (Digital Collection) market, revitalize the sleeping cultural assets, digital copyright and other contents, and the content industry is expected to continue to benefit.
Bottom performance, focusing on opportunities in the game sector. 1) From the perspective of trend, the media sector as a whole has continued the trend of bottom building and gradual repair of performance in the past 20 years. In terms of valuation, the current valuation of the media sector is also at the bottom of history; 2) From the perspective of segments, the valuation of the game industry is at an all-time low, the prosperity and demand of the industry are stable, and it is expected to usher in performance and valuation under the restart of the edition. Double click on the possible investment point of view: continue to be optimistic about the direction of the game and meta universe. 1) policy bottom up, continuous optimistic about the overfall industry leader and some beneficial policies to improve the breakdown industry to upgrade possible, recommend subdivision sector leader Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Mango Excellent Media Co.Ltd(300413) , Focus Media Information Technology Co.Ltd(002027) , Hong Kong stock recommended fast, beep, Kwai mart and other targets and overall low estimate of the 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) , heartbeat company and other targets); 2) The theme of yuancosmos has been fully adjusted. In the medium and long term, it is still expected to run through the whole year, and the segmentation continues to be optimistic: a) NFT of digital assets is expected to derive more application fields, focusing on Visual China Group Co.Ltd(000681) , Zhewen Interactive Group Co.Ltd(600986) , Three’S Company Media Group Co.Ltd(605168) , Zhejiang Huamei Holding Co.Ltd(000607) , Duzhe Publishing&Media Co.Ltd(603999) , 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) , Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) , Saturday Co.Ltd(002291) , etc.
Key recommendation portfolio: March portfolio Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Focus Media Information Technology Co.Ltd(002027) , Mango Excellent Media Co.Ltd(300413) , Visual China Group Co.Ltd(000681) , Kwai Kwai, overall performance is good, April portfolio is Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Visual China Group Co.Ltd(000681) , fast hand, beep Li.
Risk tips: performance is lower than expected, technological progress is lower than expected, regulatory policy risk, etc
