Key investment points:
Pay attention to the valuation and repair opportunities of leading stocks in the industry
By the end of December 2021, excluding the negative value, the TTM of the cultural media industry as a whole was about 23.97 times, about 179.34% higher than the valuation premium rate of CSI 300, and the absolute valuation and valuation premium rate increased slightly. Based on the analysis of industry fundamentals and market sentiment, we believe that in the short term, the industry fundamentals are still in the bottom recovery range, the industry valuation center is gradually rising with the benefits of topics such as meta universe, and the valuation repair of oversold low-level stocks exists. Therefore, investors are advised to pay attention to the valuation repair market of leading stocks with excellent performance growth, Select leading companies with sustainable competitive advantages in the medium and long term.
Film market
In December 2021, the monthly ticket room was about 2.708 billion yuan, with a stable performance. The top three films in the box office revenue were 838 million yuan for manslaughter 2, 429 million yuan for the middle of the antique Bureau and 282 million yuan for fame. The overall box office was in a steady development trend. The overall competitiveness of the films whose schedules have been determined in January 22 is good. It is expected that the imported films “matrix restart” and “Wang Wang team’s great contribution film” will have a certain box office influence and are expected to support the box office revenue in November.
TV dramas and online dramas
On December 31, 2021, the market share of “adoptive father’s love”, “opponent” and “fierce knife in the snow” on the TV station ranked the top three, and the top three on the network were “ace army”, “fierce knife in the snow” and “Xiaomin family”.
Mobile Internet
(1) in July 2021, the number of mobile Internet users in China reached an all-time high of 1.159 billion, with a year-on-year increase of 0.5%. The growth rate of users continued to decline, indicating that the number of mobile Internet users in China has tended to be stable.
(2) in terms of the scale of active users in China’s mobile Internet Primary Industry in July, 21, as the lives of Chinese residents began to be fully digitized, the user demand of travel, life and other vertical service industries was still growing rapidly in July.
(3) in July, the use behavior of Chinese mobile Internet users gradually showed a “two-dimensional planarization” service with mobile phones as the core, and gradually stepped into a “three-dimensional scene” service built by a variety of intelligent terminals.
Investment advice
In December, the cultural media industry was active. Driven by the concept of meta universe, mobile game stocks and advertising, radio and television stocks in the industry took turns. Strategically, we believe that in January, we need to continue to pay attention to the related companies with low valuations in the industry that are favored by the theme of the yuan universe. It is expected that the rotation effect of the theme of the yuan universe on the industry will continue. In addition, it is recommended to continue to pay attention to the related leaders in the sports industry that are favored by the Winter Olympic Games. To sum up, we continue to maintain the “optimistic” investment rating of the media industry and recommend Focus Media Information Technology Co.Ltd(002027) (002027), Bluefocus Intelligent Communications Group Co.Ltd(300058) (300058), Hubei Century Network Technology Inc(300494) (300494), Kunlun Tech Co.Ltd(300418) (300418), China Sports Industry Group Co.Ltd(600158) (600158).
Risk tips
The industry policy continues to be stricter, the industry development does not meet expectations, the industry competition continues to intensify, and the black swan incident continues to have an impact.
