The Politburo meeting again emphasized “promoting the healthy development of platform economy” and overweight the layout of Hong Kong stock Internet
According to Xinhua news agency, on April 29, the Political Bureau of the CPC Central Committee held a meeting to analyze and study the current economic situation and economic work. The meeting stressed that “we should promote the healthy development of the platform economy, complete the special rectification of the platform economy, implement normalized supervision, and introduce specific measures to support the healthy development of the platform economy.” We believe that compared with the “steadily promote and complete the rectification of large platform companies as soon as possible, set up red and green lights, promote the steady and healthy development of platform economy and improve international competitiveness” mentioned at the meeting of the Finance Committee of the State Council on March 16, this highlights the support for platform economy, and subsequent or specific support measures are issued to inject a strong impetus into the development of platform economy, And boost investors’ confidence in the Internet sector. The Politburo meeting may further consolidate the bottom of the valuation, and the sector valuation has a strong repair power. With the release of the game version number, the offline economic activities and advertising are restored after the epidemic improves. The game and advertising end of Internet companies are expected to be significantly repaired, ushering in an upward turning point in performance. On the other hand, the use depth of Internet users and the penetration rate among the elderly are still increasing. According to quest Mobile’s 2022 China Mobile Internet spring report, the per capita duration and per capita usage times in 2022q1 increased by 12.1% and 4.4% respectively year-on-year, and the year-on-year growth rate of user duration returned to double digits, The year-on-year growth was mainly driven by the growth of users aged 4-40 and over (1.51% year-on-year). We believe that the current Hong Kong stock Internet sector may be experiencing the process of “bottom valuation – bottom performance”, so we suggest to strengthen the allocation and be more optimistic about three directions: (1) the short video and live e-commerce track with rapid commercialization; (2) Z-generation vertical community with rapid growth at the traffic end and great commercial realization potential; (3) Social and content Internet leaders with deep user moat, rich IP reserves, diversified cash flows, stable performance or stronger performance. Kwai-w, Yuewen group and Dongxin company are mainly recommended. The beneficiary targets include bilibili-sw, Tencent holdings, netease-s, zhihu-w, meituan-w, cloud music and JD group-sw.
The game section continues to grasp the triple logic and pursue success
We continue to propose to strengthen the allocation of the game sector based on the triple logic: (1) the release of the version number will bring a double boost to the valuation and performance of the game sector. After the company’s “party star” obtained the version number on April 11, the national service was officially launched on April 23, or verify that the release of the version number will accelerate the launch of new games and promote the repair of performance. (2) The game accelerates to the sea, or brings considerable performance increment. (3) Open world games may be the prototype of meta universe products to further open the growth space of the industry. The game sector continues to focus on the recommendation of ‘ G-Bits Network Technology(Xiamen)Co.Ltd(603444) , Kunlun Tech Co.Ltd(300418) , Wuxi Boton Technology Co.Ltd(300031) , Zhejiang Century Huatong Group Co.Ltd(002602) , celadon games, etc.
Focus on the performance flexibility brought by the launch of head content to the long video platform
The second issue of the Hong Kong Music Competition and singing gift program “sound is alive” jointly launched by mango TV, Hunan Satellite TV and Hong Kong TVB was broadcast on May 1. According to the cat’s eye professional edition, as of 17:00 on May 2, the cumulative broadcast volume of mango TV exceeded 660 million, and the real-time popularity ranked among the top three in the variety category, or brought a positive drive to the increase of mango TV traffic and membership. 2022q2 mango TV or IP variety “sister riding the wind and waves Season 3” will be launched, which is expected to further drive the growth of traffic and the increase of variety investment income. We continue to suggest that we actively seize the opportunities brought by the improvement of the competition pattern of long video platforms. Platforms with outstanding content self-control ability and high user stickiness may benefit more. The launch of head content may bring greater performance flexibility. We continue to focus on Mango Excellent Media Co.Ltd(300413) .
Risk tip: there is uncertainty about the launch time of the new game, and the performance of variety shows such as “sound without rest” is lower than expected.
