1、 See the last page for disclaimer Page 1 of 15 Equity Research Report Equity Research Sector Report 股股票票研研究究 行行业业报报告告 证证券券研研究究报报告告 传播文化行业传播文化行业 Media&Culture Sector Sector Report:Media&Culture Sector Teddy Lin 林荣叶 行业报告：传播文化行业(86755)2397 6692 .hk 26 December 2022 Growth Certainty of Sub-industries Im

2、proves,Historically Low Valuation Has Great Room for Rebound,Outperform 子赛道的成长确定性上升，历史低位的估值水平具有巨大弹性,“跑赢大市”By comparing and analyzing the operating performance and share performance of each sub-industry of the media and culture sector over the past year,we conclude that the decline in the valuation o

3、f the media and culture sector was far greater than the deterioration in the operating performance of the whole sector in 2022 this was likely due to the markets earlier overreaction amid pessimism about future policies and earnings growth of the sector,in our view.Now with less uncertainties in the

4、 media and culture sector,several sub-industries start to see valuation repairs,especially the movies&entertainment sub-industry.By analyzing the factors of uncertainties affecting the sub-industries and the current outlook on these uncertainties,we argue that while previous pessimism still weigh on

5、 valuation,sectors new growth prospect has yet to be fully priced in.We are particularly bullish on the potential for valuation recovery in the interactive home entertainment and interactive media&services sub-industries.Based on the analysis of specific fundamentals of sub-industries in media and c

6、ulture sector,we expect the following key fundamentals to boost the sectors valuation:1)with the normalization of release of game copyright and the expansion overseas,the certainty of revenue growth increases in the game-related sub-industries;2)profitability of video platforms begins to improve sig