China Galaxy Securities Co.Ltd(601881) 04 released the Research Report on November 11, saying: give the media Internet recommendation (maintenance) rating.
Latest view: Tencent Holdings (0700. HK): short term performance is under pressure, waiting for recovery. In 2021, the company achieved an operating revenue of 560118 billion yuan, a year-on-year increase of 16%. Q4 achieved an operating revenue of 144.19 billion yuan in a single quarter, a year-on-year increase of 8%, slightly lower than the 145306 billion yuan unanimously expected by Bloomberg. In terms of sub business, all businesses of the company go hand in hand and make joint efforts, and their respective proportion has little change compared with that in 2020. In terms of net profit, Q4 net profit reached 94.958 billion yuan, a year-on-year increase of 60.13% and a month on month increase of 140.33%. 2. Kwai -W (1024.HK):21Q4 exceeded expectations, advertising and e-commerce business grew strongly, and in 2021, the company achieved a total revenue of 81 billion 80 million yuan (YoY+37.9%) and adjusted net loss of 18 billion 850 million yuan, an increase of 139.7% over the same period last year. Q4’s revenue in a single quarter was 24.43 billion yuan (YoY + 35%, QoQ + 19.2%), a new high in a single quarter. The adjusted net loss was 3.569 billion yuan, an increase of 677.1% year-on-year. In terms of expenses, the annual sales and marketing expenditure in 2021 was 44.17 billion yuan, accounting for 54.5%; Q4 sales and marketing expenditure in a single quarter was 10.23 billion yuan, accounting for 41.9%, which has been reduced for three consecutive quarters. 3. In March, 38 Chinese manufacturers were shortlisted in the top 100 global mobile game publishers’ revenue list. According to sensortower data, in the global mobile game publishers’ revenue ranking in March 2022 released by Appstore and Google play, a total of 38 Chinese mobile game publishers entered the top 100 in the revenue list, attracting a total of US $2.22 billion, accounting for nearly 40.2% of the global top 100 mobile game publishers’ revenue. In the current list, Tencent, Netease and MIHA tour occupy the top three in the income list of Chinese mobile game publishers. MIHA tour, a mobile game publisher, performed well in this period. Thanks to the version 2.6 of original God and the launch of the new five-star character, the distribution revenue increased by 18% month on month.
Investment advice. In the long run, the game industry still has good growth. It is suggested to focus on those with excellent R & D capabilities: Tencent Holdings (0700. HK), netease-s (9999. HK), Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) ( Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) . SZ), ZuLong Entertainment (9990. HK) and heart company (2400. HK); China’s outbound social platform is developing well overseas, with increasing influence and leading role. It is suggested to pay attention to chizicheng Technology (9911. HK) and happy gathering (YY. O); In addition, policy dividends are continuously released to promote the high-quality development of cross-border e-commerce. It is suggested to pay attention to Alibaba SW (9988. HK) and sheen (unlisted); At present, some Chinese manufacturers have reached the international leading level in the short video area, and China’s Kwai Fu -W (1024.HK) is recommended.
Risk tips: the risk of intensified market competition, the risk of policy and regulatory environment, the risk of work content review or review, public health risk, etc.
