Core view
Performance of the media sector this week: underperformed the CSI 300 and gem indexes. This week (may 16-may 20), the media industry rose 1.93%, underperforming the CSI 300 (2.23%) and the gem index (2.51%). Among them, the top gainers are Alpha Group(002292) , St Tengxin, St Xinwen, the third five year plan Internet and Shenzhen Liantronics Co.Ltd(300269) ; The top declines were Dasheng Times Cultural Investment Co.Ltd(600892) , Beijing Gehua Catv Network Co.Ltd(600037) , Shenzhen Bingchuan Network Co.Ltd(300533) , St Mingcheng, Zhongchang Big Data Corporation Limited(600242) , Guangxi Radio And Television Information Network Corporation Limited(600936) , etc. In terms of horizontal comparison, the media sector ranked 16th in terms of rise and fall among all sectors this week. The ranking was slightly improved compared with last week, and the performance of St hat taking concept ranked first.
Focus: the CPPCC National Committee held a special consultation meeting on “promoting the sustainable and healthy development of digital economy”, and “ride the wind and waves 3” was broadcast online. 1) Liu He, member of the Political Bureau of the CPC Central Committee and vice premier of the State Council, attended the Special Consultative Meeting on “promoting the sustained and healthy development of the digital economy” held by the CPPCC National Committee in Beijing on the 17th. He pointed out in his speech that he supports the sustained and healthy development of the platform economy and the private economy, handles the relationship between the government and the market well, supports the listing of digital enterprises in the capital markets outside China, promotes competition with openness and innovation with competition; 2) “Riding the wind and breaking the waves 3” was broadcast online on May 20. According to mango TV data, the cumulative broadcast volume of the first phase has exceeded 340 million people, which continues to verify the ability of Mango Excellent Media Co.Ltd(300413) popular variety content creation.
Important data tracking this week: the box office increased, the number of opened cinemas increased, and mango TV variety continued to take the lead. 1) The box office of the film this week was 164 million, up 42.03% month on month. The number of cinemas in China this week was around 8500, with a business rate of about 70%, a new high since April; 2) This week, mango TV’s self-made variety “sister riding the wind and waves Season 3” and “silent” ranked first and second in variety. “Ace to ace Season 7”, “camping together” and “new travels” ranked top. Overall, mango TV has an obvious leading edge, accounting for 5 seats in the top 10 variety shows; 3) In the digital collection market, the top three in terms of turnover in the last 7 days are otherded for otherside, okay bears and bored ape Yacht Club, with turnover of 15475eth, 334097sol and 7252eth respectively.
Investment suggestion: the policy continues to build the bottom, and pay attention to the opportunities at the bottom of the sector and the possibility of repairing the sector damaged by the epidemic. 1) The game version number is restarted, and the prosperity and valuation are expected to improve. Combined with the product portfolio and upward flexibility, A-Shares mainly recommend 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) Pay attention to the changes of the epidemic situation and the possibility of repairing the damaged sector, pay attention to the film and television and marketing service sector, and recommend Beijing Enlight Media Co.Ltd(300251) , Mango Excellent Media Co.Ltd(300413) , Focus Media Information Technology Co.Ltd(002027) and other targets; 3) Policy bottoming, continued to be optimistic about the possibility of upward repair of oversold industry leaders and some sub sectors benefiting from policy improvement, recommended sub sector leaders Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) Mango Excellent Media Co.Ltd(300413) Focus Media Information Technology Co.Ltd(002027) Focus Media Information Technology Co.Ltd(002027) Kwai and other target and overall underestimated game sectors; 4) 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 generate 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) Duzhe Publishing&Media Co.Ltd(603999) , Zhejiang Huace Film And Tv Co.Ltd(300133) , Fubo group, etc; b) For the application of virtual digital human, pay attention to the bottom marketing company and film and television content company, 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.
