Market review: this week, the performance of the media sector was average, down 3.3%, underperforming the gem by about 0.58 percentage points (the gem index fell 2.72%); Underperformed the market by about 4.41 percentage points (CSI 300 rose 1.11%).
Industry segments: (1) the game index underperformed the market: CITIC game index (ci005577) fell 5.01%, 6.13% lower than the CSI 300 index. (2) The advertising index underperformed the market: the CITIC advertising index (ci005847) fell 3.37%, 4.48% lower than the CSI 300 index. (3) The sports index underperformed the market: the CSI sports index (399804) fell 4.03%, 5.14% lower than the CSI 300 index. (4) A-share education companies underperformed CSI 300, while Hong Kong stock education companies underperformed Hang Seng Index. CITIC education index (ci005816) fell 3.73%, underperforming the CSI 300 index by 4.84%. The Hong Kong stock education index (887671) fell 2.79%, underperforming the Hang Seng Index by 5.18%.
Film and television: (1) Mango Excellent Media Co.Ltd(300413) disclose the annual performance forecast of 2021. In 2021, Mango Excellent Media Co.Ltd(300413) it is estimated that the annual net profit attributable to the parent company will be 2.04 billion yuan ~ 2.14 billion yuan, with a year-on-year increase of 2.92% – 7.96%; Deduct non net profit of RMB 2 billion-2.1 billion, with a year-on-year increase of 8.33% – 13.75%. (2) The “rating after broadcasting” mode of Youku account sharing drama was officially launched. According to the official news of Youku online drama cooperation platform, the “rating after broadcasting” mode of Youku revenue sharing drama has been officially launched since January 17, 2022.
Games: (1) Microsoft acquires Activision Blizzard. According to the Wall Street Journal, Microsoft will buy Activision Blizzard at a price of $95 per share. The total price of the transaction is about $68.7 billion (about 436.4 billion yuan), with a premium of about 45%. (2) Unity announced a partnership with Hyundai. At CES 2022, unity, a global real-time 3D platform service provider, announced to establish a partnership with Hyundai Motor Co., Ltd. to build a “Metafactory” and create a new meta universe route and platform.
Sports: (1) Tencent Tianmei released the new brand of “Tianmei health”. Tencent Tianmei studio announced today that Tianmei’s first cross-border sports health, games + fitness make sports more interesting. (2) UEFA expects the Champions League to increase revenue by 40% under the new competition system. According to the times, UEFA expects that from 2024, the TV and commercial revenue of the Champions League under the new competition system will increase by 40% every year, with a total amount of more than 5 billion euros.
Education: (1) the regulations on the management of students’ internship in vocational schools delineate a “red line” for internship management. Eight departments including the Ministry of education revised the regulations on the administration of student internship in vocational schools issued and implemented in 2016 to further clarify the code of conduct for student internship and draw a “red line” for internship management. (2) New Oriental: it is estimated that the net interim loss in fiscal year 2022 will be US $800 million to US $900 million. For the six months ended November 30, 2021, New Oriental incurred a lot of costs due to the closure of the learning center, termination of lease agreements and layoffs. It is expected that the net loss in the reporting period will be between us $800 million and US $900 million.
Key investment points: it is recommended to pay attention to Mango Excellent Media Co.Ltd(300413) (300413), Wuhan Ddmc Culture & Sports Co.Ltd(600136) (600136).
Risk tip: media policy tightening risk; Risk of business integration or less than expected; New business development is less than expected risk; The content response is less than the expected risk.
