Last week, in the “14th five year plan” for digital economy development issued by the State Council, the Internet media sector has made active investment in virtual reality, NFT and other tracks, which is expected to benefit from the rise of Digital China. Tencent continues to overweight the layout of Quanzhen Internet, or acquire Black Shark technology to enter the next-generation Internet hardware entrance. The new version of mobile QQ is equipped with a fantasy engine, or try to create “social + game” products. The epidemic prevention and control policy of the local Chinese New Year is increasing the uncertainty of the box office of the Spring Festival, the popular films are withdrawn from the Spring Festival, and the production participation of listed companies is low. In 2022, content supply is still the biggest factor affecting the box office expectation of films, and the schedule of the Spring Festival still plays a decisive role in the performance of the film market in the first half of the year. It is recommended to pay attention to Wanda Film Holding Co.Ltd(002739) , Beijing Enlight Media Co.Ltd(300251) . Stimulated by the prospect of meta universe, the global game industry will enter the peak of technology and format innovation. The rise of virtual human and NFT track will bring opportunities to improve the valuation of the sector. On the meta universe derivative track: 1. Game developers with leading engine capability have the opportunity to seize the first opportunity at the level of virtual human technology; 2. NFT technology is also expected to effectively enable social game products, and the uplink of game props and assets has the opportunity to improve the valuation space of relevant listed companies; 3. NFT product distribution platform with content community foundation. It is recommended to pay attention to Perfect World Co.Ltd(002624) , G-Bits Network Technology(Xiamen)Co.Ltd(603444) , heart company, Visual China Group Co.Ltd(000681) , Inmyshow Digital Technology (Group) Co.Ltd(600556) .
Risk warning: covid-19 epidemic prevention and control; Required consumer price; China’s regulatory policy; Overseas Internet market policy.
Market performance review: CITIC media index rose or fell – 2.70% throughout the week, outperforming Shanghai Composite Index, Shenzhen Component Index and gem index, ranking 22nd among 30 CITIC primary industries. From the perspective of industry segments, the animation sector performed best last week, with CITIC’s tertiary index up or down + 2.42%, followed by film and television, Internet advertising and marketing.
Industry highlights: the State Council printed and distributed the “14th five year plan” for the development of digital economy, which defined the guiding ideology, basic principles, development objectives, key tasks and safeguard measures to promote the healthy development of digital economy during the 14th Five Year Plan period| The national development and Reform Commission issued the notice on doing a good job in promoting consumption in the near future, requiring to increase the supply of cultural and sports programs such as online TV, online movies and live events during the Spring Festival, and encourage online video platforms to show films at limited time and low price| Shuimen bridge in Changjin lake is scheduled for the first day of the lunar new year in 2022| Station B invested in Shanghai Yanmo Network Technology Co., Ltd. and became the major shareholder accounting for 25% of the shares| Tencent Q1 plans to launch or test three products, namely “dark zone breakthrough”, “bright star road” and “wolongyin 2″| In December 2021, the consumption of global mobile game players in app store and Google play reached US $7.4 billion, a year-on-year decrease of nearly 2%.
