Review of market and sector trends: last week, the media sector index rose 1.93%, the Shanghai Composite Index rose 2.02%, the Shenzhen Component Index rose 2.64%, and the gem index rose 2.51%. The top three gainers of the sector: Alpha Group(002292) (+ 35.02%), Beijing Zhidemai Technology Co.Ltd(300785) (+ 14.14%), Lugang culture (+ 13.69%); The top three declines in the sector: Beijing Gehua Catv Network Co.Ltd(600037) (- 6.81%), Wuhan Ddmc Culture & Sports Co.Ltd(600136) (- 5.47%), Col Digital Publishing Group Co.Ltd(300364) (- 3.95%). The NASDAQ China technology index rose 5.69% last week and the Hang Seng China enterprise index rose 4.62% last week.
Zhou Du’s view: the special session of the CPPCC was held to send a warming signal and pay attention to the valuation repair of platform economy companies. On May 17, a special consultation meeting on “promoting the sustainable and healthy development of digital economy” was held in Beijing. Nearly 100 members of the National Committee of the Chinese people’s Political Consultative Conference attended the meeting. At the meeting, vice premier Liu he pointed out that “we should strive to adapt to the all-round changes brought about by the digital economy”, “support the sustainable and healthy development of platform economy and private economy, handle the relationship between the government and the market well” and “support the listing of digital enterprises in capital markets outside China”; The next day, Premier Li Keqiang also pointed out at the Symposium on stabilizing growth and market entities and ensuring employment in Yunnan that “support the legal compliance of platform economy and digital economy and listing and financing at home and abroad”. Since the end of the 21st century, four high-level meetings have continuously transmitted the marginal positive signal of the platform’s economic rectification attitude. We believe that the regulatory signal is gentle and warmer, and the valuation repair of the platform company that oversold in the early stage is worthy of attention. The financial reports of zhonggai shares 22q1 have successively disclosed that [JD (adjusted net profit of 4.03 billion yuan, yoy + 1.6%), Tencent (adjusted net profit of 25.55 billion yuan, yoy-22.9%) and Xiaomi (adjusted net profit of 2.859 billion yuan, yoy-52.9%)] the performance is basically consistent with Bloomberg’s expectations. On the whole, most companies are under great operating pressure under the complex policies and economic environment of Q1, With the fermentation of Q2 epidemic, we believe that the company’s fundamentals are still facing uncertainty.
“618” is approaching. Last week [JD (to be launched on May 23), Alibaba (Taobao live broadcast launched on May 26), Kwai (the 616 Shopping Festival has been launched)] and other companies successively announced the arrangements for launching the “618” mid year promotion activities. Last week, the share prices of e-commerce industry chain companies [ Beijing Zhidemai Technology Co.Ltd(300785) 14%, Saturday Co.Ltd(002291) 10%] led the increase. In the April social zero data released by the Bureau of statistics on May 16, the total amount of social zero was yoy-11.1%, and the consumption of online physical goods was yoy-5.2%. The consumer market was significantly affected by the epidemic, the online consumer demand was relatively tough, and the growth of basic living and some upgraded consumption was good. Under the siphon effect, the “618” year greatly promoted or relatively boosted the consumption and e-commerce sectors, It is suggested to pay attention to e-commerce platforms and industrial chain companies [JD, Alibaba, pinduoduo], etc.
Key tips: 1) relatively high boom track, China stock market news, etc; Short video, [Kwai, byte]; Medium video [beep beep beep]; Technology [Xiaomi, baidu]; Long video [iqiyi (release 213 new film lists), mango (mango TV + Hunan Satellite TV dual integration investment promotion meeting was held on the 18th, sister 3 was broadcast on May 20)]; Cultural media [ Jiangsu Phoenix Publishing & Media Corporation Limited(601928) , Chinese Universe Publishing And Media Group Co.Ltd(600373) , Ireader Technology Co.Ltd(603533) ], etc. 2) The game section focuses on the combination of Xinyou online and meta universe after the restart of the version number. Pay attention to the head [Tencent (in April, “glory of the king” won the world’s best-selling list of mobile games, yoy + 6.2%), Netease (more than 40 games were released at the 520 Game Conference)], China [Panax notoginseng (in April, it ranked second in the overseas revenue of Chinese game manufacturers with “Puzzles & survival” and “song of Cloud City”), perfect, G-Bits Network Technology(Xiamen)Co.Ltd(603444) , century, giant, Fuchun, yao ji, Baotong, Caesar, Huali, Xinghui and Kunlun], Hong Kong stocks [heart, celadon, middle hand travel (net profit attributable to parent company in 21 years: 610 million yuan, year-on-year – 12.77%), IgG, ZuLong, chizicheng], VR technology [Silk Road, Hengxin, Jiachuang], etc.
3) e-commerce and industry chain, focusing on e-commerce platforms [jd.com, pinduoduo, Alibaba (IDC: China’s public cloud market cagr30.9% in the next five years)] and live broadcast platforms [Tiktok (won the top of the global mobile application (non game) revenue list in April, tiktok plans to launch games in Southeast Asia), Kwai (released the 2022 live broadcast operation white paper, and Kwai bought the eslcsgo copyright)], Industrial chain [ Saturday Co.Ltd(002291) , yao ji, gravity], marketing technology [focus, blue label, vision], etc., byte benefit [ Three’S Company Media Group Co.Ltd(605168) , Zhewen Interactive Group Co.Ltd(600986) ], etc; Community retail [meituan, daily Youxian, dingdong], etc; Wechat ecological e-commerce SaaS [youzan, Weimeng].
4) generation Z and community, maintaining high growth and high stickiness. Pay attention to [Bili], tide play [bubble mart, Chuang Meng, aofei], etc; Online reading and IP operation [reading articles], online Q & a community [Zhihu (start the fourth phase of “Haiyan plan” to encourage creators in vertical fields)], online music [Netease cloud], etc.
5) in the film sector, focus on animation film leader [light], cinema and content composite leader [Wanda], Internet platform [cat’s eye], entertainment broker [Lehua], etc.
Environmental risk, political risk, impairment risk
