Market Review
This week (2022.01.04-2022.01.07), the Shanghai stock index fell 1.65%, the Shanghai and Shenzhen 300 index fell 2.39%, and the gem index fell 6.80%. SW media index rose 0.70%, outperforming the gem index by 7.50pct, ranking 11th among the 28 industries in Shenwan level. Among the sub industries, publishing, sports and advertising marketing ranked among the top three, with weekly increases and decreases of 4.36%, 4.04% and 1.98% respectively.
Media industry data
As of January 7, 2021, the top three cinema films are embracing you through the cold winter, anti-corruption storm 5: the final chapter and Li Mao playing the prince; The top three webcast films are "strange fate in Northeast China", "door lock" and "king of barbecue"; The top three film and television dramas are "ace army", "fierce knife in the snow" and "Xiaomin family"; The top three in the variety show are "exciting offer Season 3", "ha ha ha Season 2" and "please give advice to the director"; The top three best sellers of IOS games are "glory of the king", "peace elite" and "original God"; The top three Android game hits are glory of the king, original God and tomorrow's Ark.
Core view
This week, a meeting of directors of the national Department of culture and tourism was held in Beijing. The meeting stressed the need to strengthen Sino foreign exchanges and cooperation, deepen cultural and tourism integration, and promote the high-quality development of culture and tourism. We believe that "cultural tourism integration" is promoted by the policies of the 14th five year plan of many provinces and is one of the important themes of the development of cultural industry. Investors are advised to pay attention to the subject matter with relevant formats of cultural tourism integration; Recently, the National Radio and television work conference proposed to comprehensively stop online film and television dramas with the theme of "idol cultivation" and "delaying reform", and seriously carry out a special inventory in the field of online film and television dramas, short videos and live broadcasting. The media industry has experienced many years of valuation adjustment, bubble clearing, and the new opportunities brought about by the rising of the current yuan universe industry. We believe that the media companies with high quality content and industrial production capability have high cost performance at the same time, and at the same time, investors are advised to pay attention to the 2021 newspaper industry's high growth target.
Investment advice
We continue to pay attention to the game sector and recommend head game R & D manufacturers with low valuation, Perfect World Co.Ltd(002624) , Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) ; In terms of the new media sector, we strongly recommend the state-owned new media platform operation company Mango Excellent Media Co.Ltd(300413) , which is backed by Hunan Taiwan high-quality content production platform, has high performance growth and continues to benefit from the dividends of media integration reform; In the film sector, it is suggested to pay attention to the investment opportunities promoted by the introduction of the "14th five year plan" of the film, and the digital cinema and new media copyright business of Beijing Jetsen Technology Co.Ltd(300182) will benefit directly; In other sectors, it is recommended that Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) the leading digital cultural and creative exhibition company benefiting from the "cultural infrastructure" and Beijing Fengshangshiji Culture Media Co.Ltd(300860) the large-scale cultural and tourism performance program producer committed to creating the output carrier of "cultural confidence".
Risk tips
Regulatory policy uncertainty risk; Macroeconomic downside risk.