Market Review
This week (2022.01.17-2022.01.21), the Shanghai stock index rose 0.04%, the Shanghai and Shenzhen 300 index rose 1.11%, and the gem index fell 2.72%. The SW media index fell by 3.30%, underperforming the gem index by 0.59pct, ranking 23rd among the 28 industries in Shenwan level. Among the sub industries, radio and television, Internet services and film and television ranked among the top three, accounting for 2.77%, 2.67% and – 0.59% respectively.
Media industry data
As of January 21, 2022, the top three cinema films are “hug you through the cold winter”, “manslaughter 2” and “anti-corruption storm 5: final chapter”; The top three webcast films are “antique bureau”, “Changjin Lake” and “strange talk of yin and Yang Town”; The top three film and television series are “beginning”, “ace army” and “mirror · two cities”; The top three in the variety show are “time concert”, “ha ha ha ha Season 2” and “annual Comedy Competition”; The top three of the anime are “the continent of the continent”, “the complete works of piggy page” and “the story of the animal kingdom”. The top three best sellers of IOS games are “glory of the king”, “peace elite” and “crossing the line of fire: the king of gunfight”; The top three hot Android games are “glory of the king”, “original God” and “sausage party”.
Core view
This week, many departments issued documents to strictly regulate the expansion of financial investment business of platform enterprises, which is also the focus of preventing disorderly expansion of capital. Combined with the recent withdrawal of Tencent from the investment of several platform companies and the abolition of investment business, we believe that the anti-monopoly of platform economy is deepening and becoming more and more normalized. Microsoft acquired game giant Activision Blizzard for nearly $70 billion. As the Internet product form closest to metauniverse at present, the acquisition is the performance of the giant seizing the beach of metauniverse industry. We believe that the recent recovery of the media market is mainly driven by the pull-out valuation effect driven by the meta universe. The rise of the game is relatively small due to the influence of the version number policy. At present, it still has a high configuration cost performance. At the same time, it is also recommended that investors pay attention to the high-quality target of the pre increase of annual report performance.
Investment advice
We continue to pay attention to the game sector and recommend head game R & D manufacturers with low valuation, Perfect World Co.Ltd(002624) , Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) ; In terms of new media sector, we strongly recommend the state-owned new media platform operation company Mango Excellent Media Co.Ltd(300413) , which is backed by Hunan Taiwan high-quality content production platform, has high performance growth and continues to benefit from the dividends of media integration reform; In the film sector, it is suggested to pay attention to the investment opportunities promoted by the introduction of the 14th five year plan, and the digital cinema and new media copyright business of Beijing Jetsen Technology Co.Ltd(300182) will benefit directly; In other sectors, it is recommended that Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) the leading digital cultural and creative exhibition company benefiting from the “cultural infrastructure” and Beijing Fengshangshiji Culture Media Co.Ltd(300860) the large-scale producer of cultural and tourism performance programs committed to creating the output carrier of “cultural confidence”.
Risk tips
Regulatory policy uncertainty risk; Macroeconomic downside risk
