Market Overview: CITIC’s primary media sector fell 5.3% this week. The market continued to fluctuate downward this week, and the media fell more affected by this. However, after a substantial market correction, the valuation advantage of the sector has been at a historically low level. In the follow-up, under the expectation of epidemic repair and new technology driven, the sector is expected to be valuated and repaired. Individual stocks with good fundamentals for a long time have reached a better price position from the perspective of medium-term allocation. In the Hong Kong stock market, from the medium-term perspective, some Hong Kong stocks and zhonggai Internet targets are at historically low valuations. It is suggested to pay more attention from the perspective of fundamentals.
Plate views and recommended targets: 1) game: the release of version number has been resumed. At present, the leading company has been pe12-18x for 22 years. It is suggested to pay attention to the landing of the company’s reserved game version number, and the game companies with strong R & D strength + ability to go to sea will be more deterministic. At the same time, some second tier stocks are expected to usher in a make-up market, focusing on the pico main line. Core target [ Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Perfect World Co.Ltd(002624) , G-Bits Network Technology(Xiamen)Co.Ltd(603444) , Wuxi Boton Technology Co.Ltd(300031) , heart company, etc.]; 2) Video: focus on the realization of high-quality content and the change of industry pattern, focusing on [ Mango Excellent Media Co.Ltd(300413) ]; 3) Yuancosmos: the sector has been active again recently. At present, the valuation has been adjusted back to the low level, focusing on the industrial landing and enterprise financial report fulfillment in the directions of NFT (Q1 yuan visual transaction volume and unit price have increased rapidly) / VraR (Pico 22 sales target of 1.8 million units) / virtual human, and the key targets are [ Visual China Group Co.Ltd(000681) , Hylink Digital Solution Co.Ltd(603825) , Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) , Bluefocus Intelligent Communications Group Co.Ltd(300058) ]. 4) Hong Kong stocks: recommend the Kwai TSU to enhance the efficiency and promote the platform business with narrowed losses.
Games: many key games are tested / officially announced. Baiao family interactive research and development, G-Bits Network Technology(Xiamen)Co.Ltd(603444) release the game Obi Island: dream country, end the paid test, open the IOS reservation on April 21, and conduct the omni-channel test on April 28. Altman: build-up, a Chinese mobile game, has attracted 6 million reservation users in three months since opening the reservation. The game will open the IOS non deletion test on April 28 and the Android non deletion test on April 29. On April 23, the IOS terminal and taptap platform of heart company party star were officially launched.
VR web application end, VR web application end.
1. The second online game conference of meta gamingshowcase released 12 VR Games: the walking dead: saints and sinners, Chapter 2: attribution, nflproera, amongusvr, redmatter2, espire2, Moss: bookii, runsmagus, city: VR, biochemical crisis 4vr, free update of mercenary mode, beatsaber’s new song list, electronic Mixtape, bonelab Ghostbusters VR. In addition, metacto recently said that the company released the web version of horizonworlds, and the royalty was only 25%, lower than that of the VR Version (47.5%). As of February 2022, the number of users of horizon worlds has reached 300000 in the three months since its launch.
2, tiktok force VR content end, April 24th Pico will join the jitter on its own content platform online Bundesliga “Munich VS Dortmund, Bayern”, the live broadcast is China’s first VR platform event live broadcast, fans can log in to watch the event related rooms by PicoNeo3.
Video: affected by the epidemic situation and macro factors, the number of Netflix members fell for the first time. 22q1 company achieved revenue of USD 7.868 billion (YoY + 9.8%), operating profit of USD 1.972 billion (YoY + 0.6%), net profit of USD 1.597 billion (yoy-6.4%), and the number of streaming media paying users was 222 million, a decrease of 200000 people month on month. The decline of paying users is mainly due to 1) the unstable conversion rate of smart TV; 2) More than 100 million users share accounts with paying users; 3) The competition of streaming media market is further intensified; 4) Economic weakness, international turbulence, covid-19 epidemic and other macro factors. According to the company’s public performance meeting, in the future, the company will further develop in three aspects: improving program quality and algorithm recommendation, solving the “free rider” problem of shared users and further expanding overseas business, so as to maintain revenue growth, increase operating profit, improve profit margin and realize the positive and sustainable growth of free cash flow.
Risk tips: policy supervision risk, increased competition risk, and the impact of the epidemic exceeds the expected risk.
