Market performance
Last week, the Shanghai Composite Index, Shenzhen Component Index, gem index and media Internet sector index (CITIC) increased by 0.55%, 2.64%, 2.51% and 1.97% respectively. The top ten stocks in the media Internet sector last week: Alpha Group(002292) , ST Tengxin, ST Xinwen, three five Internet, Shenzhen Liantronics Co.Ltd(300269) , Bus Online Co.Ltd(002188) , Zhewen Pictures Group Co.Ltd(601599) , Huayi Jiaxin, Guangdong Guanghong Holdings Co.Ltd(000529) , Guangdong Insight Brand Marketing Group Co.Ltd(300781) . It was the most of the most of the most of the most of the most of the most of the most of the most of the most of the most of the most of the most of the most of the most of the most of the the most of the most of the the most of the most of the most of the most of the most of the the the most of of the the the most of the most of the the most of of the the the the most of the most of the most of the most of the most of the most of the most of the most of the most of the most of the most of the most of the most of the most of the most of the most of the most of the most of the most of the most of the most of the the the the most of of the the the most of the the the the most of of the the the most of the the the the most of of the the the the the the most of of the the the the the most of the the the the the the the most of of the the the the the the the the the the the the the the the the the the the the the the the the the the the the the .
The digital economy consultation meeting was held, and the boundary of Internet regulatory policies was gradually clarified
On May 17, the CPPCC National Committee held a special consultation meeting on “promoting the sustained and healthy development of the digital economy”. Wang Yang, chairman of the CPPCC National Committee, proposed to “continuously strengthen, optimize and expand the digital economy”. Vice Premier Liu he stressed that “we should support the sustained and healthy development of the platform economy and the private economy, and support the listing of digital enterprises in the capital markets outside China”.
Since the beginning of this year, under the influence of the international situation and repeated epidemics in many places, the macroeconomic growth has been under pressure, and the Internet platform, as an important infrastructure for online consumption, is expected to become one of the important starting points for the “steady growth” of the economy throughout the year. On April 29, the meeting of the Political Bureau of the CPC Central Committee stressed that “we should promote the healthy development of the platform economy, implement normalized supervision, and introduce specific measures to support the standardized and healthy development of the platform economy”. The convening of the special consultation meeting on digital economy of the CPPCC National Committee further set the tone for the supervision of the Internet industry in the next stage: the regulatory policy boundary for Internet enterprises will be gradually clarified, and normalized supervision is the main tone in the future. In the second half of the year, it is suggested to pay attention to the follow-up promotion of three regulatory directions: 1) antitrust regulation: pay attention to the revision progress of the antitrust law and the implementation process of relevant rules; 2) Content supervision: the supervision boundary has been relatively clear, and the focus will be inclined from formulation to implementation; 3) Information security supervision: pay attention to the negotiation progress between China and the United States on the audit draft of overseas companies.
Tencent 21q1’s performance is under short-term pressure and is expected to be gradually repaired with the implementation of supervision and the recovery of the epidemic
On May 18, Tencent holdings released the financial report of 2022q1: the total revenue was 135.5 billion yuan, flat year-on-year; The non IFRS net profit attributable to the parent company was 25.5 billion yuan, a year-on-year decrease of – 23%. From the perspective of business: 1) the revenue of game business was 43.6 billion yuan, flat year-on-year. Among them, China’s market revenue was 33 billion yuan, a year-on-year decrease of – 1%, mainly due to the decline in user fees due to the restriction on the activity of minors during the Spring Festival holiday; The international market revenue increased by 4% year-on-year to 10.6 billion yuan, and the growth rate slowed down year-on-year, mainly due to the decline in user activity and payment after the overseas epidemic, resulting in the decline in the revenue of big dau games such as pubg mobile. 2) Advertising revenue was 18 billion yuan, down – 18% year-on-year due to industry supervision and the weakening of macro-economy under the repeated epidemic. 3) The income from financial technology and enterprise services was 42.8 billion yuan, a year-on-year increase of 10%. The growth rate slowed down due to the repeated impact of the epidemic. Overall, Tencent’s 21q1 performance is greatly affected by the aftermath of regulatory policies and the repeated epidemic. 21h2 is expected to improve gradually with the resumption of the release of game version numbers and the gradual recovery of the epidemic.
Investment suggestions:
We believe that with the emergence of the bottom of the Internet platform regulatory policy, the overall valuation of the media Internet sector is at a historically low level and has a large margin of safety. .
Risk tips:
The risk of policy supervision, the risk of repeated outbreaks in China, and the risk that consumption recovery is less than expected.
