Market review: in December 2021, the media (Shenwan) index rose by 14.45%, outperforming the wind all a index by 13.41pct, ranking first among the 28 sub industries of Shenwan; Sub sections generally rose, and sub sections such as digital media, film and television theaters, television broadcasting, marketing, games and publishing rose or fell by 20.21%, 16.17%, 15.31%, 12.64%, 11.22% and 1.64% respectively.
Valuation: as of the end of December, the PE (TTM, median) of the media (Shenwan) sector was 36.28 times (33.27 times the previous value), which was in the last 28.47% since 2010.
Industry tracking: 1) film: in 2021, the film market did not return to the level before the epidemic, and the national total box office was RMB 47.035 billion, a decrease of 26.68% compared with 2019. The box office of new year’s day in 2022 will be 1.02 billion yuan, an increase of 1.80% over the same period in 2019, ranking the third in the film history of the same period. 2) Games: in 2021, the revenue of China’s mobile game market was 225.538 billion yuan, a year-on-year increase of 7.57%, and the growth rate slowed down; The overseas revenue of China’s self-developed games in 2021 was US $18.013 billion, a year-on-year increase of 16.59%. 4) Yuancosmos: Bluefocus Intelligent Communications Group Co.Ltd(300058) reached strategic cooperation with Baidu xirang to jointly promote the development of yuancosmos industry; Visual China Group Co.Ltd(000681) launched the “meta vision” art digital collection platform to help transform copyright and digital product transactions from tob to TOC; Shanghai announced that it would strengthen the forward-looking research and development of the basic capabilities of the underlying core technologies of the meta universe, promote the development of new terminals for deepening perceptual interaction and the construction of systematic virtual content, and explore industrial applications.
Investment suggestion: the recent hot market of yuanuniverse has driven the market trend and valuation repair of the media industry. It is suggested to grasp the following main investment lines: 1) the main application directions of metauniverse in the media field are virtual human and NFT. Virtual people include virtual idols, virtual brand spokesmen, etc. it is expected to usher in new investment opportunities in the field of film and television and marketing, focusing on Mango Excellent Media Co.Ltd(300413) , Bluefocus Intelligent Communications Group Co.Ltd(300058) ; NFT is mainly used to confirm the rights of digital assets, and the related objects are Visual China Group Co.Ltd(000681) , Chengdu B-Ray Media Co.Ltd(600880) . 2) In the game sector, the regulatory boundary of short-term policies is clear, the performance is in the rising period after the launch of new products, and the valuation is at a historical low. In the long term, it is expected to become the first application scenario of yuanuniverse, focusing on Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Perfect World Co.Ltd(002624) , G-Bits Network Technology(Xiamen)Co.Ltd(603444) . 3) The Spring Festival is coming. Although the local epidemic may affect the business of local cinemas, with the support of more than 10 high-quality films such as sniper and super family, it is expected to drive the demand for film viewing during the Spring Festival, focusing on Wanda Film Holding Co.Ltd(002739) and Beijing Enlight Media Co.Ltd(300251) .
Risk warning: stricter policy supervision; Intensified market competition; The performance was less than expected.
