Market Overview: the media sector rose 1.93% this week (5.16-5.20). This week, the CPPCC held a special consultation meeting on digital economy. Vice Premier Liu he pointed out that he supports the healthy development of digital economy and platform economy. The market’s expectation of the bottom recovery of platform economy continues to rise, the short-term valuation is expected to stabilize and recover, and the fundamental changes need to be continuously paid attention to in the medium term. At present, the valuation of the media sector is at an all-time low, superimposed with epidemic repair + policy recovery expectation + driven by new technology. Stocks with long-term good fundamentals have reached a better price position from the perspective of medium-term allocation. In the Hong Kong stock market, from the medium-term perspective, some Hong Kong stocks and zhonggai Internet targets are at historically low valuations. It is suggested to pay more attention from the perspective of fundamentals.
Plate views and recommended targets: 1) game: the first quarterly report of leading companies performs well. At present, the valuation of the sector is at the bottom of history. After the release of the version number, the performance growth is guaranteed by policies, and the sea opens up the profit space of enterprises. This year, byte made concerted efforts in Pico marketing + channel + content and improved the sales target of head display, which is expected to bring the beta market of the sector. It is suggested to pay attention to the core targets [ Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Perfect World Co.Ltd(002624) , G-Bits Network Technology(Xiamen)Co.Ltd(603444) ] and Pico main line targets [ Wuxi Boton Technology Co.Ltd(300031) , Kaiser (China) Culture Co.Ltd(002425) , Jiangsu Zitian Media Technology Co.Ltd(300280) , Kingnet Network Co.Ltd(002517) ]]; 2) Video: pay attention to the realization of high-quality content and the change of industry pattern. It is recommended to pay attention to [ Mango Excellent Media Co.Ltd(300413) ]; 3) Yuancosmos: at present, the valuation of the sector has been adjusted back to the low level, focusing on the landing of industries in NFT / VraR / virtual human and other directions and the fulfillment of enterprise financial reports, with key targets [ Visual China Group Co.Ltd(000681) , Hylink Digital Solution Co.Ltd(603825) , Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) , Bluefocus Intelligent Communications Group Co.Ltd(300058) ]. 4) Hong Kong stocks: recommend platform enterprises [Kwai] that reduce costs and increase efficiency, promote the narrowing of losses, and pay attention to the progress of epidemic recovery and the leader of fashion blind box [bubble Mart].
Hunan Satellite TV & Mango TV’s new ecological appreciation conference film list was released, and “riding the wind and breaking the waves” was launched. In 2022, the major drama list and variety film list were officially released, covering 49 variety shows in more than 10 tracks, such as lost track, food, emotion and blood. Among them, 17 classic IP integrations such as Chinese restaurant 6 were upgraded and returned to n generation, and detective 7 consolidated the advantages of maze track; In terms of dramas, based on the two characteristic brands of “Golden Eagle solo” theater and “Mango monsoon” theater and the “Mango Juxian” section, 39 dramas were released, and the resonance of the network helped to continuously release the value of diversified content; At the press conference, the MV “ride the wind” of “ride the wind and waves 3” was released globally for the first time, and the program was officially launched on May 20.
Tencent released 22q1 financial report, which was under pressure due to macro factors. In 2022q1, Tencent achieved an operating revenue of 135471 billion yuan, unchanged year-on-year; Non IFRS net profit attributable to the parent company was 25.545 billion yuan, a year-on-year decrease of 23%; The revenue from value-added services remained stable as a whole, including 43.6 billion yuan from game business and 29.1 billion yuan from social network business. China’s juvenile protection measures had an impact on the number of active and paid game users, and the contribution of overseas game market increased; Advertising revenue fell 17.6% year-on-year to 18 billion yuan, mainly due to weak advertising demand in education, Internet services, e-commerce and other industries and regulatory changes in the online advertising industry; The realization of fintech and enterprise service business was stable, and the revenue increased by 10.0% year-on-year to 42.8 billion yuan.
The popularity of virtual social apps is rising under the tuyere of the meta universe. According to data According to the latest data of AI, the number of meta universe related apps in the mobile application market has continued to grow since 2020. Among them, social apps show a leading trend, and the global demand for virtual image social apps is increasing sharply. The number of downloads in the first quarter of 2022 increased by 60% to 38 million year-on-year, an increase of 215% over the same period of 2020. Zepeto bud oasis ranked among the top three global virtual social app downloads in the first quarter. With the cooperation between brands and applications in the meta universe, user interest has been effectively improved and extended to many fields such as games, retail, restaurants and so on.
Risk tips: policy supervision risk, increased competition risk, and the impact of the epidemic exceeds the expected risk
