Industry core view:
Last week, the media industry (Shenwan) rose 1.87%, ranking 18th in the market, losing 300 in Shanghai and Shenzhen. Hunan Satellite TV and mango TV launched a dual platform integration strategy to build a systematic content production system for the platform. We believe that the dual platform strategy can integrate the existing production team resources, cooperate with marketing means, integrate stations and networks, open up productivity, expand the comprehensive production capacity of high-quality dramas, make the platform build a systematic content production system, and promote the high-quality and healthy development of the content industry; Tencent announced the 22q1 financial report. We believe that the decline in the local market of games is mainly due to the increase in revenue generated by games such as hero League mobile game and golden shovel battle, which is mostly offset by the decline in revenue of games such as Tianya Mingyue swordsman game and call of duty mobile game. However, with the continued popularity of new games such as return to Empire and apex mobile game, we are optimistic about the company’s Q2 game market, At the same time, pay attention to the online progress of DNF mobile game.
Games: 1) in 2022 Q1, there were 243 investments in the global game industry, with a total amount of US $3.5 billion, a year-on-year decrease of 10.3%. 2) Sensortower released the revenue ranking of global popular mobile games in April 2022, and Tencent’s “glory of the king” continued to be the first. In April 2022, the consumption of global mobile game players was US $7 billion, a year-on-year decrease of 4.6%. The United States remains the world’s highest mobile game revenue market, with us $1.9 billion, accounting for 27.7% of the world’s total revenue; China’s IOS market ranked second, accounting for 20.4%. 3）data. AI released the ranking list of overseas downloads of China’s popular mobile games in the first quarter of 2022, and “pubg mobile” reached the top. Followed by “hooking” developed by mountaingame and “lords mobile” from IgG. 4) Netease Games held a 520 press conference to announce the new trends of more than 40 games and three key new products. The three key products are the mobile game against the cold water, the mobile game of eternal robbery and immortality, and Diablo: immortality. 5) Photon EA jointly developed apex mobile tour, which was released worldwide, and won the free list of more than 70 countries on the first day. 6) Sony announced the upgraded PS plus member game lineup, including a variety of VR games. 7) Netease martial arts end game IP “against the cold” mobile game version opens an official appointment. 8) Tencent games had a solid performance in the first quarter, and its international market revenue increased by 4% year-on-year. In the game business segment, Tencent’s game revenue reached 43.6 billion yuan, of which the game revenue in the international market was 10.6 billion yuan, a year-on-year increase of 4%; The local market revenue was 33 billion yuan, a year-on-year decrease of 1%.
Internet: Hunan Satellite TV and mango TV launched a dual platform integration strategy to build a systematic content production system for the platform. The dual platform has reserved a number of self-made variety production teams, film and television production teams and Xinmang plan strategic studio, built China’s largest content production think tank and built a systematic content production system for the platform. In terms of marketing, relying on the station network exposure resources, Xiaomang e-commerce transformation resources, Fengmang short video social communication resources and mutual entertainment private domain, build a platform to open up the station network resources.
Investment suggestion: comply with the strict regulatory environment of the policy, promote industrial reform, and grasp the innovation needs brought by the post epidemic era and Z era. 1) Game: the epidemic dividend has faded. It is suggested to pay attention to the individual stocks in the product line that are developed for the new generation of users, have well-known IP, have high expectations and good test feedback; At the same time, driven by the concept of “meta universe”, it is expected that the ecological construction of VR content will become the focus of the market in 2022; 2) Film and television cinemas: focus on leading cinemas and individual stocks; 3) Film and television series: diversified theatres and mini dramas will be the focus of the development of the video industry. It is suggested to pay attention to individual stocks with strong content IP commercialization ability; 4) Advertising marketing: focus on individual stocks of ladder media.
Risk factors: stricter regulatory policies, delayed launch and less than expected performance of Xinyou, increased risk of overseas business, repeated epidemic risk and goodwill impairment risk.
