"Meta Universe" Fire Byte Jump, Acquisition Of Gol Shares Related Party Pico, Domestic VR Industry Chain Finally Wait For The Wind?

"The end of the universe is Tieling", where is the end of the Internet?

There are too many statements about the answer to this question. At first, it was "e-commerce", then "community group purchase", and later became "loan"

Now, there is a new answer: "the meta universe.".

What is "meta universe"?

Meta universe, meta means transcendence, and verse stands for universe. Taken together, it usually means the concept of "beyond universe": an artificial space running parallel to the real world.

In 2021, "meta universe" has become the focus of market attention, which is considered as the revolution of the next generation Internet interaction form. The recent craze for the "metauniverse" is related to an investment in byte hopping.

On August 29, Pico, a VR (virtual reality) startup, sent a letter to all staff, disclosing that the company was acquired by byte jump.

The next day, the investment caused great concern in the secondary market, and many VR / AR concept stocks of a shares changed: Baotong Technology (300031) and Jinlong electromechanical (300032) trading limits; Golfer shares (002241) once hit the trading limit. The company responded in time on the interactive platform that Pico birdie is currently a related party of the company, and both sides have carried out cooperation in VR field.

From Facebook, byte jump, Tencent and other giants at home and abroad competing to lay out the "meta universe", VR industry has been regarded as the "admission ticket" for the first time to log on to the next generation of Internet, and also regarded as a new "wealth password" by investors.

In this issue of hard core investment and research, 21st century capital research institute first focuses on golfer, a company known as "the leader of Apple industrial chain", and has been deeply engaged in VR field for a long time. With the gradual implementation of 5g, VR, which mostly stayed in the concept stage in the early stage, is gradually improving in terms of hardware and content. In addition to golfer shares, more Chinese VR equipment manufacturers will also usher in reform opportunities.

Four questions about investment and research of Capital Research Institute in the 21st century:

1. What is the relationship between meta universe and VR devices?

2. Why Pico?

3. What is the VR / AR Business Development of golfer?

4. What is the potential of Chinese VR manufacturers?

Capital distribution of large factories

The concept of "meta universe" has a long history. It was first created in the science fiction avalanche published by Neil Stephenson in 1992.

At present, it is defined as an immersive and connected shared virtual world in which users can interact, collaborate and create.

Professor Zhu Jiaming, director of the academic and Technical Committee of the Institute of digital assets, once said that the connotation of "meta universe" is to absorb the achievements of information revolution (5g / 6g), Internet Revolution (Web3.0), artificial intelligence revolution, as well as VR (virtual reality), AR (augmented reality), Mr (hybrid reality), especially game engine.

On the "yuancosmos" track, large factories at home and abroad have layout, and some companies try to taste the secondary market.

On March 11, 2021, roblox was listed. As the first company to write "metauniverse" into its prospectus, roblox achieved strong stock price performance with a total market value of US $47 billion. Its active developer ecology, user ecology and business model show the future development potential of meta universe for the market.

Overseas, Facebook uses oculus devices to layout VR field, and launches Facebook horizon to launch VR social platform; Google uses stadia to lay out cloud games and Youtube VR to lay out software and services.

In China, Tencent CEO Ma Huateng put forward the concept of "Quanzhou Internet", and invested in Epic Games, roblox and other companies to lay out the meta universe track, while increasing investment in cloud, game and short video content fields; Byte beat previously invested nearly 100 million yuan in "meta universe" game developer code Qiankun layout meta universe; MIHA you and Lilith of the "four little dragons" in the game industry have also started their exploration in the field of meta universe this year.

With the investment of various head manufacturers and continuous breakthroughs in the technology field, the industry believes that "meta universe" will be expected to become the next stage of the development of the Internet industry, and even call 2021 "the first year of the meta universe".

A VR "ticket"

Domestic and foreign giants compete to enter the situation, which reflects the hidden wealth opportunities. To a certain extent, we can't miss this feast by benchmarking the bytes of Facebook.

On August 29, the internal letter of Pico confirmed that the company was acquired by byte jump.

According to public data, Pico was founded in 2015 by the current CEO Zhou Hongwei, focusing on creating the ultimate VR experience. Pico is the largest software and hardware R & D manufacturer with the largest shipment volume in the domestic VR industry. The company has developed products such as mobile VR helmet, Goblin VR all-in-one machine, picouvr glasses, trackingkit tracking kit, picostore app and game store.

Pico is 100% owned by Qingdao birdie watch technology. The largest shareholder of the latter is Golmud group, with a shareholding ratio of 26%. Jiang long, the chairman of the board, is the vice chairman and general manager of gol.

In other words, Pico and golfer shares belong to golfer group.

According to qixinbao data, Pico has obtained four rounds of financing before the acquisition. The latest round of financing is the 242 million yuan B + round financing completed in March this year. Investors include cornerstone capital, CCB international, China Merchants Group capital, etc. The shareholders previously introduced also include keystone wealth, CICC capital, CLP CICC, GF Qianhe, GF Xinde, Jufeng technology innovation, etc.

The acquisition of byte jump shows the former's ambition in VR business layout.

According to the news, Pico will merge into the VR related business with byte skipping, integrate byte content resources and technical capabilities, and increase investment in product research and development and developer ecology.

CICC believes that with the acquisition of Pico by byte, it is expected to copy the successful experience of Facebook's acquisition of oculus, open VR live broadcast and other remote interaction related applications, and drive the rapid growth of domestic and global VR shipment.

According to China's AR / VR market report in the fourth quarter of 2020 released by IDC in March this year, Pico ranked first in the domestic VR all-in-one machine market share in 2020, and the Q4 share was as high as 57.8%. Since its establishment, Pico has sold more than 500000 VR helmets.

As for the acquisition of Pico by byte jump, Tang Rongxing, co-founder of liangfengtai of AR company, which has been deeply involved in the industry for nearly 10 years, is very optimistic. He thinks that this will promote the development of the industry: "byte beat is an excellent software company. The acquisition of Pico can realize the combination of software and hardware. As far as I know, they have already set up in the AR optical field. Upgrade 3D immersive content for future 2D content and create a better ecological closed loop. And through such an acquisition event, it will produce more extensive industry knowledge popularization, and will also drive the upgrading of AR / VR industry chain. "

New growth point of gol shares

Golfer shares, which belong to the same group as Pico, is one of the focuses of this acquisition.

Golfer shares, known as the leader of Apple's industrial chain, has been involved in the concept of "meta universe" for a long time.

At the end of 2020, at a time when the market expects Apple's wireless headset sales to decline in 2021, the 21st Century Capital Research Institute pointed out in the report that VR / AR business may be expected to relay headphones to become a new profit source of gol shares.

(read "the first quarter's performance doubled and exceeded expectations again. Gol shares, the leading fruit chain leader, fell below 100 billion yuan. When will the broken" Apple belief "be rebuilt?"

Since this year, golfer's performance has also confirmed this point.

In the first quarter, golfer's operating revenue reached 14.028 billion yuan, up 116.68% year-on-year. The net profit attributable to shareholders of listed companies was 966 million yuan, up 228.41% year-on-year. In the first half of the year, the operating revenue was 30.288 billion yuan, up 94.49% year on year; Net profit attributable to parent company was 1.731 billion yuan, up 121.71% year on year.

The company's performance forecast for the first three quarters continues to increase greatly. It is estimated that the net profit to the parent company in the first three quarters of 2021 is about 3.214 billion yuan - 3.461 billion yuan, with a year-on-year increase of 59.38% - 71.64%. In the third quarter, the profit is expected to reach 1.483 billion yuan - 1.73 billion yuan. If the median value is taken, the third quarter profit is estimated to be 1.61 billion yuan, with a year-on-year increase of about 30% and a month on month growth of about 110%.

In 2021 semi annual report, goer shares mentioned that the company's "meta universe" and other emerging concepts have attracted more and more attention from the whole industry.

In the first half of this year, golfer's performance increased greatly. The company said that the reason was the increase in sales revenue of vr virtual reality, intelligent wireless headset and other products.

According to the financial report, golfer mainly consists of three business sectors: precision components, intelligent acoustic machine (such as TWS) and intelligent hardware (such as VR / AR, intelligent wearable products). In the first half of 2021, the revenue of precision components was 6.051 billion yuan, with a year-on-year growth of 21.78%; The revenue of intelligent acoustic equipment was 12.492 billion yuan, up 91.94% year on year; The revenue of intelligent hardware was 11.211 billion yuan, with a year-on-year increase of 210.83%.

Among the three businesses, the growth rate of intelligent hardware business led by VR / AR business is eye-catching, ushering in explosive growth.

On August 31, a person related to golfer told the 21st century capital research institute that "the VR / AR market is booming, and golfer shares, which have been in this field for many years, are in the harvest period. Behind the great increase of VR / AR performance, it is the deep binding between goer and the giants."

Recently, Jiang Bin, chairman of gol Co., Ltd., said at the 2021 micro display optical technology conference that gol has started to lay out VR / AR industry since 2012, and now occupies 70% of the global market share of medium and high-end virtual reality head display. Golfer has not only established long-term cooperative relations with Facebook and Sony, but also deeply participated in the R & D, design and production of VR devices for customers.

Focus on China VR concept stocks

Behind the growth of VR business of golfer shares is the rise of a track.

In fact, the VR industry experienced a trough period from 2017 to 2020. At that time, the mainstream mobile VR product experience was not good, the host VR price was high, and the content was scarce, which led to the consumer market not really breaking out.

Since 2020, the signs of recovery are obvious. With the release of quest2 and the appearance of superposed VR games, the market prospect of VR industry is optimistic.

"The reason why we fell into a low ebb before is that the market expects too much from the industry, while the display and computing technologies have not yet reached the mature stage, which makes the user experience not so good. However, in the past two years, hardware equipment, 5g, cloud computing, etc. have been constantly upgraded, which also encourages more developers to enter, so as to produce more good content, attract more users and form a normal cycle. " Tang Rongxing's analysis of the 21st Century Capital Research Institute.

Tang Rongxing further said that with the rise of the concept of "meta universe", the connection between the physical and digital worlds will be more interesting and the experience will be better and better. This is an irreversible process. "I believe that the shipment volume of relevant VR / AR equipment will be greatly improved this year and next, and domestic industry chain companies will also usher in major opportunities."

According to the prediction of IDC, the global vr virtual reality products will grow by about 46.2% year on year in 2021, and it is predicted to maintain a high growth rate in the next few years, with an average annual compound growth rate of about 48% from 2020 to 2024.

The first entrance of the meta universe is AR / VR terminal, which needs the support of 5g, cloud computing and other technologies. According to the report of future think tank, in the whole industry chain, the current market scale of hardware, content, software and service is 37%, 36%, 19% and 8% respectively. Among them, the hardware is mainly consumer level and industry level VR terminals, mainly including games, video, live broadcast, etc.; software includes system software developers, application software developers, software distribution channels, etc.; VR services include offline experience stores, game chain stores and various industry application service providers.

In terms of content, Baotong Technology (300031) is a popular leading stock of a share, and AR / VR / MR intelligent glasses and software platform is one of its main businesses.

Previously, the company has invested in the VR / AR content and solution provider Beijing hasiqi Technology Co., Ltd. (hereinafter referred to as "hasiqi") in the field of "virtual reality" and cooperates with Hangzhou Yijiao Qianxiang Technology Co., Ltd. (hereinafter referred to as "Yijiao Qianxiang"), which is committed to building a digital 3D space platform.

Baotong technology is determined to deeply cultivate the "virtual reality" industry. According to its 2021 half year report, in the future, the company will combine its game product "terminal front: inobeta" and hadiqi as well as Qianxiang's key strategic layout in AR and VR, so as to empower the game in AR and VR, and create naked eye 3D mecha fighters.

In addition, Baotong technology also said in the semi annual report that the company, together with hasiqi, Yishi Haotong and the game R & D team, has developed a number of game demos, realizing the adaptation of AR / VR / XR terminals. In the future, the company will continue to explore more innovative interactive games based on AR / VR / XR ("XR" refers to extended reality).

There are many game manufacturers like Baotong technology in A-share market. In order to compete for an increasingly large market share, companies such as perfect world (002624), Gigabit (603444), and telepresence network (603258) have strengthened their layout on the track of sandbox game (a kind of virtual reality game).

In terms of hardware, VR head display equipment is an important output port, and many large factories have layout.

HTC, Sony and oculus will dominate the world before 2019, while oculus will become the largest and diversified industry after 2020. Before 2019, VR, as an expensive professional player equipment, was dominated by Sony's PS VR series. Sony, oculus and HTC vive accounted for nearly 80% of the global market share. After 2020, with the hot sale of oculus quest2 and the launch of Qualcomm XR2 platform, the development of VR head display will reach a new climax.

According to IDC statistics, oculus has gradually taken the lead in the industry in terms of shipping since 2020q2, and Q4 is far ahead. At present, the mainstream VR manufacturers in China include Pico, iqiyi, Nolo, corevision, Qianhuan magic mirror, Dapeng, etc. at present, Pico and DPVR are relatively in the lead, and the industry still presents a diversified development pattern.