Market review this week
This week, the Hang Seng Index rose 0.41%, the Hang Seng technology index fell 2.95%, the Dow Jones industrial index fell 0.29%, the NASDAQ index fell 4.53%, the e-commerce index rose, and the Internet and education indexes fell. Among the key Internet stocks, Alibaba SW (+ 17.20%), Alibaba film (+ 16.42%) and Baidu group SW (+ 11.61%) led the gains.
Wechat open class focuses on supporting video numbers, and the State Council issued a document to support the pilot digital RMB
On January 6, the wechat open class video Number proposed incentive measures for the first time. It is planned to invest 10 billion to help small and micro enterprises with digital upgrading, and will launch the paid live broadcasting room on the video number, as well as the charging and reward ability for all kinds of videos. In the future, we will focus on supporting video numbers to make their social attributes more obvious.
On January 6, the State Council issued the overall plan for the pilot of comprehensive reform of market-oriented allocation of factors to support the pilot use of digital RMB in retail transactions, living payment, government services and other scenarios. Then, the first digital RMB app was launched in China United Network Communications Limited(600050) , and Tencent and wechat were also connected to support digital RMB payment.
China youzan issued a voluntary announcement and IgG issued an annual profit warning for 2021
On January 3, China youzan issued a voluntary announcement. In 2021, the total volume of merchandise transactions generated by the Kwai Tung solution was about 98 billion 300 million yuan, and the total merchandise transaction volume from non fast track channels was YoY +30%. The number of SaaS merchants in newly signed stores increased significantly, and the proportion of total SaaS business commodity transactions in stores increased to 28%, yoy exceeding + 100%.
On January 7, IgG issued a profit warning. Compared with 2020, the annual revenue of the company in 2021 is expected to be yoy + 10%. Due to the decline of other financial assets and the increase of game R & D expenses and sales expenses arising from the promotion of games, the expected net profit yoy-80% – 90%.
Investment advice
The 2022 wechat open class was officially held this week. It is planned to invest 10 billion to help the digital upgrading of small and medium-sized enterprises. At the same time, the video number will be launched in the paid live broadcasting room. The content and creator ecology of the video number are constantly improved, which is expected to consolidate the wechat system and open the space for commercialization. Alibaba further upgraded its organizational structure, adjusted China’s digital business sector, opened up the two business groups of Taobao tmall, and promoted Taobao tmall to comprehensively focus on improving the customer experience. In our 2022 strategy report, we made it clear that taking into account the theme of efficiency and fairness, refined operation capability is the key to victory. Internet leading enterprises are expected to take the lead in breaking the situation by virtue of continuous iteration of organizational structure and operation capability, Suggestions are also given to concern about the recommendations of the quality Internet leading group -W, Alibaba -SW, Tencent holdings, NetEase -S, Kwai -W, Tong Dao hunting, etc.
Risk tips
Geopolitical conflict intensifies; Drastic changes in industry competition pattern; Anchor tax review; Long term suspension of game version number, etc
