The CEO of most domestic network companies is full of confidence

The CEO of most of China's internet and media companies is optimistic about future development, the Morgan Stanley report said.

The following is a summary of the report:

Over the past two months, we have visited more than 10 CEOs of Chinese Internet and media companies, including Tencent, Ctrip, media and NetEase, who have expressed their views on the development of the Internet and media industries during the talks.

Sustainable growth, but more likely to be "autonomous growth":

1 in spite of concerns about slowing industry growth, most CEOs expect China's online gaming market to grow at a rate of 20% to 30% a year in the coming period. Among industry-leading companies, Tencent should have a greater potential for sales growth because its users account for only 10% per cent of their subscribers, and the average income (ARPU) of online games is below the peer level of 30% to 50%. We believe that NetEase will also expand its market share, because NetEase has the industry's most powerful game product portfolio (our survey shows that NetEase's "world" and "Datang Hero biography" is becoming a new growth power).

2 Air U.S. media, media outlets, the Golden Bridge and China as the media confirmed that the advertising market is rebounding. Thanks to major events such as the World Cup and the Shanghai World Expo, and operating leverage, most of these advertising industry leaders will see profit growth in the second half of 2010. After years of business restructuring, the media now focus on the restoration of pricing power, enhance the advertising screen utilization and the expansion of the strategy to small and medium-sized cities, in order to achieve "independent growth." In the next few years, the revenue of the media will likely increase by more than 30% a year.

Finding positive signals in an uncertain macro environment: 1 In spite of a shortage of labor and a rise in wages in China, most CEOs believe that their company will not be affected because they offer higher remuneration (plus equity), a faster track of career development and a better corporate culture; 2 Most companies are limited by the slowdown in real estate advertising. It is worth mentioning that Sina and the CEO of the media in the second half of 2009, respectively, increased their shares in the company's shares, which is a positive signal of its stock performance; 3 The content is king: Last year, Chinese film box-office receipts grew by more than 40%, while Huayi Brothers ' revenues increased by more than 70% per year over the past 3 Scatterers)