New Oriental share price doubled in two trading days. Sinolink Securities is bullish on the media and internet industry

Game version number reopened recently, and the live stream New Oriental went viral. Sinolink Securities gave some investment advice on the media and internet industry, suggesting long-term investment in high-quality internet assets.

Focus on the companies with high competitive barriers and strong performance. Meituan is a local leader in the internet platform, and the operating data growth is still strong; Tencent's social barriers strong. Despite facing short-term pressure from the product line and the industry, Tencent has strong long-term competitiveness based on social networking; Jingdong has an edge in proprietary trading in e-commerce; Kuaishou is one of the leading companies in short videos. The community ecology continues to prosper, and advertising and live e-commerce businesses are accelerating in penetration; Mango Excellent Media's strength in self-produced variety shows is outstanding. Starting from 2Q22, online variety shows will be released intensely, expected to drive performance growth.

E-commerce, local life, etc., are expected to recover under the restoration of consumption. The pandemic impacted offline scenes. E-commerce, local life, and financial payments are expected to benefit directly as the pandemic is gradually controlled; The epidemic also affects the pace and willingness of advertisers to invest, so the advertising business of platform companies is expected to benefit from the concentration of advertising budgets throughout the year after the epidemic.

The space left for the Internet user volume growth is limited. Relying on traffic growth is unsustainable, and the overall growth rate of the revenue side is slowing down. Pay attention to the commercialization progress of the companies that have not yet matured on the realization side; the profitability side is more seriously divergent. Pay attention to the promotion of the process of cost cut of the companies that have not yet achieved stable profitability.

Tencent, Kuaishou, Meituan, NetEase, XD Inc., China Literature, Bilibili, Alibaba, Jingdong, Baidu, HUITONGDA NET, BAOZUN-SW, XIAOMI-W, Archosaur Games

Pinduoduo, Vipshop, Dingdong