The 21st ChinaJoy Expo in 2024 will be held as scheduled from July 26th to July 29th with the theme "The original intention of 'Game' is to create unlimited fun".
Zhixin Finance App learned that Debon Securities issued a research report stating that the media and internet sector has a good opportunity for growth due to the repair of the basic fundamentals, the significant growth expectation of ARVR and AIGC tracks, and the impact of policy support, and is bullish on its future development. Pop Mart has significantly increased in revenue and profits, and has released an advance notice, with overseas expansion and breakthroughs in product categories, 24H1 is expected to achieve high performance growth. As one of the most well-known and influential annual events in the global digital entertainment industry today, ChinaJoy, to be held next week, will present the panoramic view of the development of the digital entertainment industry driven by new technology, demonstrating the latest achievements in global digital entertainment industry development.
AI advances and MR grows, IP fragmentation, bullish on structural growth and opportunities in overseas markets. Debon Securities believes that there is a good opportunity for overall sector growth allocation based on the following three reasons: 1) It is expected that the fundamentals will gradually improve this year; 2) The growth expectation of ARVR and AIGC raceway is very clear, and now is the time to lay out; 3) Policy supports the development of the digital economy, cultural industry and platform economy. The "Outline of the National Medium- and Long-Term Cultural Development and Reform Plan" emphasizes the importance of such fields as culture, sports, Internet-based social services, sharing economy, and new individual economy in promoting consumption development, and combined with the 19th CPC National Congress' assertion of prosperous cultural industries, building a strong nation in cyberspace, and building a digital China, as well as the Central Economic Work Conference's support for the role of platform economy in leading development, creating employment, and international competition, it is optimistic about the future development.
Pop Mart has released an advance notice of high growth in revenue and profits in the first half of the year, with revenue expected to grow no less than 55% year-on-year and profits (excluding fair value changes of financial instruments) to grow no less than 90% year-on-year. The significant growth in income and profits on the revenue and profit side is mainly due to (1) the rich product categories, increased IP recognition, and high-speed revenue growth in overseas and Greater China regions; and (2) optimized product costs, strengthened cost controls, and scale effects highlighted. We recommend focusing on the following targets: [Pop Mart].
Pay attention to the investment opportunities brought by ChinaJoy next week. The 21st ChinaJoy Expo in 2024 will be held as scheduled from July 26th to July 29th with the theme "The original intention of 'Game' is to create unlimited fun". Among them, there are nearly 300 BTOC exhibitors, with a total exhibition area of over 0.11 million square meters; nearly 400 BTOB exhibitors with a total exhibition area of over 0.02 million square meters. As one of the most well-known and influential annual events in the global digital entertainment industry today, ChinaJoy covers gaming, anime, internet film and television, internet music, online literature, electronic sports, trendy toys, intelligent entertainment software and hardware, and other digital entertainment fields. The number of exhibitors in 2019 was as high as 0.3647 million (person-times), presenting the panoramic view of the development of the digital entertainment industry driven by new technology, demonstrating the latest achievements in global digital entertainment industry development. It is recommended to focus on related targets in the gaming, anime, internet film and television, and internet music industries, including Tencent Holdings, Netease, Meituan, Bilibili, Kuaishou, China Literature, Meitu, Maoyan Entertainment, Pop Mart, cloud music, Archosaur Games, CMGE, and XD Inc. For A shares: Kingnet Network, Shanghai Film, Beijing Ultrapower Software, G-bits Network Technology, Shanghai Yaoji Technology, Zhejiang Jinke Tom Culture Industry, Mango Excellent Media, Anhui Xinhua Media.
Investment portfolio: Tencent Holdings, Netease, Meituan, Bilibili, Kuaishou, Baidu Group, Qingmu Technology, Kingnet Network, Shanghai Film, Beijing Ultrapower Software, G-bits Network Technology, Shanghai Yaoji Technology, Zhejiang Jinke Tom Culture Industry, Mango Excellent Media, Anhui Xinhua Media, Baidu Group, Focus Media, and others.
Investment themes: M&A, gaming, AI and VR, education, short drama, film and animation, advertising, etc.
Beneficiary symbols: Tencent, Netease, Meituan, bilibili, Kuaishou, PDD Holdings, IQIYI, Yeahka, China Literature, Meitu, Maoyan Entertainment, Pop Mart, NetEase Cloud Music, Archosaur Games, CMGE, XD Inc, East Buy, SuperStar Legend, etc. For A shares, there are mainly QM Scientific and Technical, Ciwen Media, iReader Technology, Three's, Wanda Film, Zhejiang Daily Digital Culture Group, Hunan TV & Broadcast Intermediary, Southern Publishing and Media, Chinese Universe Publishing and Media Group, Hangzhou Electronic Soul Network Technology, Shenzhen Bingchuan Network, COL Group Co., Ltd., Kunlun Tech, Wondershare Technology Group, Yoozoo Interactive, Lisheng Sports(Shanghai)Co.,Ltd, Foshan Yowant Technology, Eastern Pioneer Driving School, Zhewen Interactive Group, Zhaoxin Media, Shanghai Fengyuzhu Culture Technology, Visual China Group, Dark Horse Technology Group, etc.
Risk Warning: Subsequent performance growth is lower than expected, goodwill risk, regulatory policy changes, etc.