Performance of the media sector this week: it lost 300 in Shanghai and Shenzhen and outperformed the gem index. This week (4.18-4.22), the media industry fell by 5.28%, underperforming Shanghai and Shenzhen 300 (- 4.19%) and outperforming the gem index (- 6.66%). Among them, Dasheng Times Cultural Investment Co.Ltd(600892) , St youjiu, St contemporary, Zhewen Pictures Group Co.Ltd(601599) ; The top declines were st Shuzhi, St Zhongying, Guizhou Bc&Tv Information Network Co.Ltd(600996) , Inly Media Co.Ltd(603598) , Fuchun Technology Co.Ltd(300299) , etc. In terms of horizontal comparison, the media sector ranked 18th in terms of rise and fall among all sectors this week. The ranking was slightly improved compared with last week. Some of the targets had good performance in the first quarter.
Important data tracking this week: the box office this week hit a new low this year. Sensor tower released the global ranking of mobile game manufacturers in March. 1) This week (from April 17 to April 23), the box office of the film was 94.57 million, down 10.95% month on month. The weekly box office broke the lowest record since the beginning of 2022. The number of cinemas opened nationwide has increased slightly, with more than 6000 cinemas open, and the overall opening rate is about 50%; 2) This week’s “ace to ace”, “new travels”, “detective 7”, “indomitable blue” and “welcome to the mushroom house” topped the list.
On the whole, mango TV has an obvious leading edge in the broadcasting platform, occupying 6 seats in the top ten online variety shows; 3) Sensor tower released the global revenue ranking of Chinese mobile game publishers in March. The total revenue of 38 Chinese manufacturers exceeded US $2.22 billion, accounting for nearly 40.2% of the global top 100 mobile game publishers.
Among them, the top three in revenue in March were Tencent, Netease and MIHA tour. In March, the top three in the total revenue of global mobile games were Tencent’s glory of the king (US $272 million), pubg mobile (nearly US $200 million) and MIHA’s original God; 4) In the digital collection market, as of April 24, 2022, the top three turnover in the last seven days were moonbirds and Murakami Flowers seed and mutant ape Yacht Club, the transaction volume measured by Ethereum is 64199eth, 23134eth and 20571eth respectively.
Investment suggestions: 1) after the restart of the game edition, the prosperity and valuation are expected to rise up the mountain. It is suggested to seize the opportunity of double clicking from the bottom, combine the product portfolio and operation mode, and increase flexibility. A shares should focus on recommending Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , G-Bits Network Technology(Xiamen)Co.Ltd(603444) , Shanghai Yaoji Technology Co.Ltd(002605) , and pay attention to Perfect World Co.Ltd(002624) , Zhejiang Century Huatong Group Co.Ltd(002602) , Kingnet Network Co.Ltd(002517) .
Hong Kong stocks recommend heart company, BiliBili, and pay attention to the targets such as China Mobile Games and ZuLong entertainment; 2) policy bottom up, continuous optimistic about the overfall industry leader and some beneficial policies to improve the breakdown industries to upgrade possible, recommend subdivision sector leader Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Mango Excellent Media Co.Ltd(300413) , Focus Media Information Technology Co.Ltd(002027) , Hong Kong stock recommended beep, bubble, Matt, fast hand and other targets and overall low valuation of the game board (recommended Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , G-Bits Network Technology(Xiamen)Co.Ltd(603444) , Shanghai Yaoji Technology Co.Ltd(002605) , Kwai company and other targets); 3) The theme of yuancosmos has been fully adjusted. In the medium and long term, it is still expected to run through the whole year, and the segmentation continues to be optimistic: a) NFT of digital assets is expected to derive more application fields, focusing on Visual China Group Co.Ltd(000681) , Zhewen Interactive Group Co.Ltd(600986) , Three’S Company Media Group Co.Ltd(605168) , Zhejiang Huamei Holding Co.Ltd(000607) , Duzhe Publishing&Media Co.Ltd(603999) , Zhejiang Huace Film And Tv Co.Ltd(300133) , Fubo group, etc; b) Combined with NFT application, virtual digital people pay attention to the possibility of upward valuation of bottom marketing companies and film and television content companies, and pay attention to Bluefocus Intelligent Communications Group Co.Ltd(300058) , Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) , Saturday Co.Ltd(002291) , etc.
Risk tips: regulatory policy risks; Performance risk; Goodwill and asset impairment risk.
