Industry core view:
Last week, the media industry (Shenwan) fell 6.39%, ranking 30th in the market, losing 300 in Shanghai and Shenzhen. The release of the game version number is resumed, which is conducive to the valuation and repair of the sector. We believe that the suspension of the edition number is a comprehensive purification of the whole game market under the leadership of policies, such as the promulgation of a number of policies such as the specification of game content audit process and the notice on preventing minors from indulging in online games, and strengthening the supervision of the industry, which is conducive to the new tour's progress towards high-quality and high-quality products and promote the long-term healthy and sustainable development of the whole industry. Epicgames raised $2 billion, plus yuan universe. We believe that this financing shows the attraction of metauniverse to game manufacturers. Metauniverse will be the future trend of the development of the game industry. At the same time, this fund can further promote the development of epic's game engine, strengthen scene rendering and fidelity, accelerate epic's work in promoting metauniverse business, make it more possible for metauniverse to realize a world that is confused with the real, and enhance the immersion in the concept of metauniverse.
Game: 1) sensortower released the ranking list of overseas market revenue of Chinese mobile tourism that successfully went to sea in March 2022, and "original God" ranked first. 2) The release of game version numbers was resumed, and some products were highly expected. On April 8, 2022, the release of game edition numbers was officially and gradually resumed. On April 11, the State Press and Publication Administration officially announced 45 reviewed game edition numbers. 3) Tencent online game accelerator announced business adjustment and no longer provides overseas game acceleration function. Due to the adjustment of business operation strategy, Tencent online game accelerator will be upgraded to Tencent game manager from May 31, 2022, and the service of the old version will be gradually stopped. After the product is upgraded, it will only support the acceleration of national service games.
Internet: 1) SARFT and the Propaganda Department of the CPC Central Committee: unauthorized online games shall not be broadcast live. On April 15, the State Administration of radio and television and the Publishing Bureau of the Publicity Department of the CPC Central Committee issued the notice on strengthening the management of game live broadcasting on online audio-visual program platform, including prohibiting game live broadcasting and audio-visual communication without the approval of the competent department; Standardize the management of live broadcast content, comments, etc; Strengthen anchor management; It is strictly prohibited for immoral personnel to speak and appear in the mirror; Establish and improve the protection mechanism for minors on the live broadcast platform; Standardize the classification and approval of live programs. 2) Epic Games raised $2 billion, plus yuan universe. On April 11 local time, Epic Games announced that it had completed the financing of US $2 billion. The investors were Sony and Kirkbi, the family holding parent company of LEGO Group. The two companies invested US $1 billion each. 3) Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) has reached strategic cooperation with Genimous Technology Co.Ltd(000676) and zhidu universe to jointly build a new social scene of meta universe. On April 15, Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) signed a strategic cooperation agreement with Genimous Technology Co.Ltd(000676) and Guangzhou zhidu cosmos Technology Co., Ltd. According to the cooperation agreement, the three parties will make full use of their respective technical advantages, scene advantages and industrial advantages in R & D technology, artificial intelligence and blockchain to jointly promote the deep integration of the new generation of meta universe technology and game economy.
Investment suggestion: comply with the strict regulatory environment of the policy, promote industrial reform, and grasp the innovation needs brought by the post epidemic era and Z era. 1) Game: the epidemic dividend has faded. It is suggested to pay attention to the individual stocks in the product line that are developed for the new generation of users, have well-known IP, have high expectations and good test feedback; At the same time, driven by the concept of "meta universe", it is expected that the ecological construction of VR content will become the focus of the market in 2022; 2) Film and television cinemas: focus on leading cinemas and individual stocks; 3) Film and television series: diversified theatres and mini dramas will be the focus of the development of the video industry. It is suggested to pay attention to individual stocks with strong content IP commercialization ability; 4) Advertising marketing: focus on individual stocks of ladder media.
Risk factors: stricter regulatory policies, delayed launch and less than expected performance of Xinyou, increased risk of overseas business, repeated epidemic risk and goodwill impairment risk.
