Market Review
In the 15th week of 2022 (the actual trading day is 202204.11202204.15), the Shanghai stock index fell 1.25%, the Shanghai and Shenzhen 300 index fell 0.99% and the gem index fell 4.26%. The SW media index fell 6.39%, underperforming the gem index by 2.12pct, ranking 27th among the 28 industries in Shenwan level. Among the sub industries, Internet services, radio and television, film and television ranked among the top three, down 0.18%, 1.29% and 2.12% respectively.
Media industry data
As of April 15, 2022, the top three films in the cinema are “magical animals: Dumbledore’s mystery”, “marginal Walker” and “spirit Hotel 4: transformation adventure”; The top three webcast films are “Di Renjie’s contract with the gods”, “Di Renjie’s skeleton general” and “manslaughter 2”; The top three TV series are “special war glory”, “dear child” and “please give more advice for the rest of your life”; The top three in the variety show are “ace to ace Season 7”, “detective 7” and “I like you, too, season 3”; The top three of the animated cartoon are “peerless warrior”, “the complete works of piggy page” and “the continent of the continent”. The top three best sellers of IOS games are “glory of the king”, “original God” and “tomorrow’s Ark”; “Glory of the king”, “original God” and “tomorrow’s Ark” ranked the top three in the list of popular Android games.
Core view
This week, the domestic game edition was restarted after the suspension of issuance in July last year. At present, 45 game editions have been approved by the State Press and publication administration. The manufacturers involved are mainly second-line and small and medium-sized manufacturers. The approved games include Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) dream navigation, Party star of heart company, G-Bits Network Technology(Xiamen)Co.Ltd(603444) tower hunter, Yoozoo Interactive Co.Ltd(002174) chronicle of the Three Kingdoms: Pocket battle Kingnet Network Co.Ltd(002517) includes legend of the dragon, the way forward, and beware of fire and candles. We believe that the growth rate of the industry has slowed down due to the suspension of the version number, and some manufacturers have turned to the sea. With the re issuance of the game version number, the previously overstocked reserves have been launched one after another, and the overseas issued games are expected to return to the Chinese market. Combined with the further implementation of minor addiction prevention systems of major manufacturers, the game supervision will be normalized in the future, and the game industry will usher in the double repair of valuation and performance.
Investment advice
We recommend Perfect World Co.Ltd(002624) , Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , game R & D manufacturers with low valuation and version number of this round of products. The beneficiaries include game company Netease, G-Bits Network Technology(Xiamen)Co.Ltd(603444) , heart company, Kingnet Network Co.Ltd(002517) ; The policy of zhonggai shares has been adjusted, and the beneficiaries include Tencent holdings, the industry leader with rapid growth of technical services and low valuation, and Tencent music, the leader of streaming media; In terms of radio and television sector, the targets clearly benefiting from the integration of the first network include Guizhou Bc&Tv Information Network Co.Ltd(600996) , Wasu Media Holding Co.Ltd(000156) , Gehua online, Oriental Pearl Group Co.Ltd(600637) , Jiangsu Broadcasting Cable Information Network Corporation Limited(600959) , etc; In the film sector, it is suggested to pay attention to the high-quality film and television copyright company Beijing Jetsen Technology Co.Ltd(300182) , which signed a film and television copyright contract of 1.8 billion yuan with Tencent. Its digital cinema and new media copyright business directly benefit from the film’s 14th five year plan; In other sectors, it is recommended that the leading digital cultural and creative exhibition company Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) benefiting from the “new cultural infrastructure” and the large-scale cultural and tourism performance program manufacturer Beijing Fengshangshiji Culture Media Co.Ltd(300860) , which is committed to building the output carrier of “cultural confidence”.
Risk tips
Regulatory policy uncertainty risk; Macroeconomic downside risks.
