Review of market and sector trends: last week, the media sector index fell 6.46%, the Shanghai Composite Index fell 1.25%, the Shenzhen Component Index fell 2.60%, and the gem index fell 4.26%. The top three gainers in the sector: one net one record (+ 4.57%), Oriental Wealth (+ 3.10%), Songcheng Performance Development Co.Ltd(300144) (+ 1.55%); The top three declines in the sector: Three’S Company Media Group Co.Ltd(605168) (- 26.05%), Visual China Group Co.Ltd(000681) (- 21%), Bluefocus Intelligent Communications Group Co.Ltd(300058) (- 20.1%). Last week, the NASDAQ China technology index fell 2.10% and the Hang Seng China enterprise index fell 1.40%.
Zhou Du’s point of view: our previous weekly newspaper stressed that the recurrence of version numbers can be expected. On April 11, the official website of the State Press and Publication Administration officially released the latest batch of game version numbers, and a total of 45 game version numbers were issued, which is in line with our previous tips. The game edition was restarted to echo the financial committee meeting in March, release the marginal improvement signal of policy and strengthen the positive expectation of the market; The short-term direct benefit is that for the game companies that get the version number to go online, although there is a game for the release of the version number in the short term, resulting in the fluctuation of A-share game shares after the release, it is more helpful to restore the confidence and stable growth expectation of the industry in the medium term. In the long term, as a highly relevant industry of yuanuniverse, VR, AR and other industries have imagination space for reshaping the industry. It is suggested to pay attention to zhonggai shares [Tencent, Netease, BiliBili and Xinxin company], A-Shares [ Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Perfect World Co.Ltd(002624) , G-Bits Network Technology(Xiamen)Co.Ltd(603444) , Zhejiang Century Huatong Group Co.Ltd(002602) , Fuchun Technology Co.Ltd(300299) , Shanghai Yaoji Technology Co.Ltd(002605) ], etc.
The yuan universe sector was adjusted last week. On April 13, China Internet Finance Association, Bank Of China Limited(601988) Association and China Securities Association issued an initiative on NFT related financial risks to resolutely curb the tendency of NFT financialization and securitization. The wind direction of regulation brings fluctuations in the subject matter related to digital collections. We believe that regulation does not deny the technical value of blockchain, but guides the sound development. It is suggested to continue to pay attention to the specific progress. At the same time, we still believe that the meta universe is an important long-term main line. Although there will be fluctuations in the middle, we do not change the optimistic logic.
In addition, the curve of new cases in Shanghai is somewhat flat. It is suggested to pay attention to the repair of film sectors related to the post epidemic situation, including [light, Wanda, cat’s eye].
In the Internet field, the “Qinglang” special action and PCAOB delisting list continue to be supervised, but we believe that the strict supervision tends to be more normalized, and the marginal impact on market sentiment may be weakened. On April 15, the central network information office, the State Administration of Taxation and the state market supervision and administration will launch a two-month special activity “Qinglang · rectifying the chaos in the field of webcast and short video”. Compared with the eight month rectification period in 2020, we believe that the recent Qinglang special action is biased towards routine inspection rather than new supervision.
Key tips: 1) relatively high boom track, China stock market news, etc; Short video, [Kwai (non executive director Zhang Fei holdings 3 million 700 thousand shares), bytes]; Medium video [beep beep beep]; Technology [Xiaomi, baidu]; Long video [iqiyi, mango], etc; Small and medium-sized enterprise service overlay SaaS [ Dark Horse Technology Group Co.Ltd(300688) ]; Online recruitment [boss direct employment], marginal improvement of real estate [shell], etc.
2) in the game sector, focus on the rhythm and performance of the new game after the restart of the version number in the short term, and focus on the combination of meta universe in the medium term. Focus on the head [Tencent, Netease], China [Panax notoginseng, perfectness (estimated net profit of RMB 420420 million after deduction in 22q1, yoy 25.71% – 31.99%), G-Bits Network Technology(Xiamen)Co.Ltd(603444) , Zhejiang Century Huatong Group Co.Ltd(002602) , giant, Fuchun (net profit of RMB 75 million returned to the parent in 21 years, yoy + 104.4%), yao ji, Baotong, Kaisa, Huali, Xinghui, Kunlun, Hangzhou Electronic Soul Network Technology Co.Ltd(603258) ), Hong Kong stocks [heart, celadon, China Mobile Games, IgG, ZuLong, chizi city], etc, VR technology [Silk Road, Hengxin, Jiachuang], etc.
3) the film section focuses on post epidemic repair opportunities under the progress of epidemic prevention and control. Focus on animation film leader [light], cinema and content composite leader [Wanda], Internet platform [cat’s eye], entertainment broker [Lehua entertainment], etc.
4) generation Z and community, maintaining high growth and high stickiness. Pay attention to [Bili], tide play [bubble mart, Chuang Meng, aofei], etc; Online reading and IP operation [reading], online Q & a community [Zhihu (will log in to HKEx on 22nd)], online music [Netease cloud], etc.
5) the Kwai Tung business and industry chain, focusing on the platform of the electronic commerce [Jingdong (Liu Qiangdong, CEO, Jingdong Group CEO Xu Leisheng), many spells, Ali] and live platform [tiktok], industry chain [ Saturday Co.Ltd(002291) , Yao Ji (Luer plus byte advertising business), gravity], marketing technology, etc., bytes benefit [ Three’S Company Media Group Co.Ltd(605168) , Zhewen Interactive Group Co.Ltd(600986) ]; Community retail [meituan, daily Youxian, dingdong], etc; Wechat ecological e-commerce SaaS [youzan, Weimeng].
Risk warning: epidemic impact, economic and political environment risk, regulatory uncertainty, goodwill impairment risk
