Core Viewpoint - The article highlights the growth potential of AI programmatic advertising, emphasizing the advantages of algorithm efficiency, data-driven flywheel effects, and the ability to attract long-tail advertisers, positioning the company as a leader in this emerging market [1]. Group 1: Company Overview - The company, 汇量科技, is recognized as a leading player in the domestic programmatic advertising sector, ranking among the top three globally [1]. - The company is primarily focused on in-app advertising (IAA) monetization, with plans to launch Hybrid/IAP ROAS smart bidding products in April and July 2025, enhancing its IAP advertising strategy [1]. Group 2: Market Dynamics - The IAP market is significantly larger than IAA, with a market size 4.6 times that of IAA, indicating a strong growth trajectory as the company's IAP algorithms improve [1]. - The non-gaming advertising market presents substantial long-term growth opportunities, with e-commerce advertising expected to be 2.7 times larger than gaming advertising in 2024 [1]. Group 3: Financial Projections - Revenue projections for the company are estimated at $2.06 billion, $2.67 billion, and $3.73 billion for the years 2025 to 2027, respectively, with adjusted net profits of $88 million, $131 million, and $219 million [1]. - Based on comparable company valuations, a target price of HKD 24.63 per share is set, corresponding to a market capitalization of HKD 38.76 billion, using a PE ratio of 38x for 2026 [1].

Group 1 - The core viewpoint of the report is that 汇量科技 (01860) is positioned as a leader in the domestic programmatic advertising sector, driven by a data-algorithm flywheel that enhances growth potential [1] - The company is expected to achieve revenues of $20.6 billion, $26.7 billion, and $37.3 billion from 2025 to 2027, with adjusted net profits of $0.88 billion, $1.31 billion, and $2.19 billion respectively [1] - The report assigns a target price of HKD 24.63 per share based on a 38x PE valuation for 2026, translating to a market capitalization of approximately HKD 387.6 billion [1] Group 2 - The company has launched IAP (In-App Purchase) smart bidding products in April and July 2025, which are expected to enhance the precision of advertising algorithms and improve ROAS and profit margins [2] - The gaming market's IAP monetization is becoming mainstream, with a market size 4.6 times that of IAA (In-App Advertising), indicating significant growth potential for the company's core advertising business [2] - The company has observed a high growth trend in mid-to-heavy game user acquisition since Q2 2025, driven by the IAP smart algorithm [2] Group 3 - The non-gaming advertising market presents substantial long-term growth opportunities, with e-commerce advertising expected to be 2.7 times larger than gaming advertising in 2024 [3] - The company plans to launch a Target CPE smart bidding product for non-gaming categories in 2024, which has already shown initial growth trends after a year of ramp-up [3] - With a current penetration rate of less than 1%, there is significant expansion potential in the non-gaming advertising market, which is expected to support long-term revenue growth for the company [3]

Group 1 - The core viewpoint of the report is that 汇量科技 (Mediatonic) is positioned as a leading player in the domestic programmatic advertising market, driven by a data-algorithm flywheel effect that enhances growth potential [2] - The company is expected to achieve revenues of $20.6 billion, $26.7 billion, and $37.3 billion from 2025 to 2027, with adjusted net profits of $0.88 billion, $1.31 billion, and $2.19 billion respectively [1] - The report assigns a target price of HKD 24.63 per share, based on a 38x PE valuation for 2026, translating to a market capitalization of $49.8 billion or HKD 387.6 billion [1] Group 2 - The AI programmatic advertising sector has three main advantages: algorithm efficiency driving ROAS growth, a significant flywheel effect, and competitive strength derived from algorithmic improvements [2] - The company has launched IAP (In-App Purchase) smart bidding products, which are expected to enhance the precision of advertising algorithms and improve ROAS and profit margins [3] - The non-gaming advertising market presents substantial long-term growth potential, with e-commerce advertising expected to be 2.7 times larger than gaming advertising in 2024 [4]

Core Viewpoint - The report by Haitao Securities emphasizes the importance of identifying stocks with potential short-term or long-term performance discrepancies or surprises in AI advancements as a core task for 2026 [1] Group 1: Investment Strategy - The main investment strategy is to focus on value investing in the Hang Seng Technology Index, leveraging volatility from the Hong Kong stock market and short-selling mechanisms [1] - The key to successful operations lies in selecting fundamentally strong companies with sustainable development capabilities [1] Group 2: Recommended Stocks for 2026 - Stocks currently at the bottom or adjusting, with a high likelihood of fundamental reversal in 2026: Meituan, Xiaomi Group (planning next vehicle), BYD Electronics [2] - Stocks expected to benefit from EPS gains and potential valuation uplift: Tencent Holdings, Trip.com Group, JD Health, Lenovo Group [2] - Stocks with controllable elasticity: Alibaba, Baidu Group, SMIC, Hua Hong Semiconductor [2] - AI elastic stocks: Kuaishou, Bilibili, Kingdee International, Horizon Robotics, Xpeng Motors, Yueda Group, NetEase, Sunny Optical Technology, UBTECH [2] - Potential small-cap companies: Inspur Digital Enterprise, Xindong Company, Huiliang Technology [2] Group 3: Individual Stock Insights - Kuaishou, Bilibili, Horizon Robotics, Xpeng Motors, Sunny Optical Technology, UBTECH are highlighted as key stocks with positive outlooks [2] - Inspur Digital Enterprise and Huiliang Technology are noted as quality small-cap stocks with promising prospects [2] - Tencent Holdings is identified as a top pick due to its strong research framework [2] - Alibaba is considered a leading asset in AI technology [2] - Lenovo Group is expected to achieve profitability in its server business next year due to accelerated AIPC penetration [2] - Trip.com Group is positioned well for growth driven by domestic stability and overseas acceleration [2] - JD Health is recognized as a leading player in internet healthcare with a clear growth path [2] - Meituan is noted for its resilience and potential turning point in competitive landscape [2] - Kingdee International's growth is constrained by macroeconomic factors, but AI and overseas expansion provide additional elasticity [2] - Xiaomi Group is expected to see improvements as negative factors gradually clear [2] - SMIC is experiencing an increase in advanced manufacturing proportion and continuous technological breakthroughs [2] - Hua Hong Semiconductor is benefiting from growth driven by computing and consumer electronics [2] - Yueda Group focuses on IP as a core asset, with expectations for further expansion and monetization [2] - NetEase is anticipated to enter a new product cycle with upcoming releases [2] - BYD Electronics is expected to see growth from Apple's foldable phone production and has significant potential in the new energy vehicle and data center sectors [2] - Xindong Company is driven by gaming and Taptap, with expectations for the launch of an overseas version [2]

Investment Rating - The report maintains an "Outperform" rating for the media industry [3] Core Insights - The media sector outperformed the market in November, with the Shenwan Media Index rising by 1.69%, surpassing the CSI 300 Index by 4.14 percentage points, ranking 7th among 31 industries [4][20] - The number of game approvals reached a new high, with 178 domestic games and 6 imported games approved in November, contributing to a total of 1,625 game approvals from January to November, a year-on-year increase of 26.8% [4][28] - The gaming market revenue in October was 31.4 billion yuan, a year-on-year growth of 7.8%, driven by strong product cycles from leading companies [4][32] Summary by Sections Market and Industry Review - The media sector's performance in November was strong, with a 1.69% increase in the Shenwan Media Index, outperforming the CSI 300 Index [4][20] - The current TTM-PE for the Shenwan Media Index is 42.6x, positioned at the 82.2% percentile over the past five years [20][26] Gaming - The number of game approvals in November was the highest in three years, with a total of 178 domestic and 6 imported games approved [28] - The gaming market revenue in October was 31.4 billion yuan, with mobile gaming revenue at 22.6 billion yuan, reflecting a year-on-year growth of 2.4% [32] - The overseas revenue for Chinese self-developed games reached 1.799 billion USD in October, marking an 11.9% year-on-year increase [41] Film and Television - The total box office in November reached 3.553 billion yuan, a year-on-year increase of 89.3%, primarily due to the success of "Zootopia 2" [49] - The top five films in November included "Zootopia 2," which grossed over 2.2 billion yuan within nine days of release [60] - The drama market saw high viewership, with "The Tang Dynasty Mysteries" leading with 1.5 billion views [67] AI Applications - The report highlights advancements in AI video models, including the launch of the O1 video model by Keling AI, which allows users to generate videos from text prompts [79] - PixVerse V5.5 was released, enabling the creation of multi-angle narrative videos [84] - Google's Gemini 3 Pro and Nano Banana Pro were launched, showcasing significant improvements in AI capabilities [91] Investment Recommendations - The report suggests focusing on the gaming sector's new product cycles and AI applications, recommending companies such as Giant Network, G-bits, and K-Game Network [96] - The December investment portfolio includes Giant Network, K-Game Network, Bilibili, and HuiLiang Technology [7]

Investment Rating - The industry investment rating is "Outperform the Market" (maintained) [4][10] Core Viewpoints - The AI competition landscape is deepening in multiple dimensions, accelerating the evolution of ecological applications [2] - AI creative and reasoning applications are entering a high growth phase, with programming and role-playing becoming core scenarios [7] - The report highlights the significant user growth and engagement in the AI creative sector, with active users exceeding one million for leading products [7] Summary by Relevant Sections Industry Performance - The relative return over 1 month is -0.86%, over 3 months is -7.8%, and over 12 months is -4.17% [6] - The absolute return over 1 month is -3.01%, over 3 months is -7.71%, and over 12 months is 9.95% [6] AI Creative Sector Insights - In November 2025, over 200 AI creative web products had a total visit count exceeding 27 million, with independent visitors surpassing 7.7 million [7] - Leading products like Jimeng AI and Gaoding AI have over one million active users, with significant growth in independent visitor numbers for Canva and Keling AI [7] - The average usage time for several products exceeds 8 minutes, indicating strong user engagement [7] AI Development Trends - The AI development is entering a "great divergence" phase, with open-source models capturing 30% of traffic globally, and Chinese open-source models leading in specific scenarios [7] - The report notes a shift from generating text to problem-solving capabilities in AI, with programming requests increasing from 11% to over 50% [7] - The multi-model ecosystem is becoming clearer, with closed-source models handling high-value tasks and open-source models focusing on low-cost, high-concurrency needs [7] Investment Recommendations - The report suggests focusing on companies such as BlueFocus, Kunlun Wanwei, Tianyu Digital Science, Yinsai Group, Visual China, and HuiLiang Technology as potential investment opportunities [7]

Core Viewpoint - The Hang Seng Index Company announced a rebranding of the Hang Seng Hong Kong Stock Connect Software and Semiconductor Index to the Hang Seng Hong Kong Stock Connect Software Theme Index, with changes in constituent stocks effective December 16, 2025 [1] Group 1 - The number of constituent stocks will be fixed at 40 [1] - Four stocks will be added: Reading Group, Qutoutiao, Meitu, and Huya Technology [1] - Four stocks will be removed: ASMPT, SMIC, Hua Hong Semiconductor, and Innodisk [1]

Core Viewpoint - The Hang Seng Index's software and semiconductor index will be renamed to the Hang Seng Software Theme Index, with a fixed number of 40 constituent stocks, effective December 16, 2025 [1] Group 1: Index Changes - The index will include four new companies: Reading Group, Qutoutiao, Meitu, and HuiLiang Technology [1] - Four companies will be removed from the index: ASMPT, SMIC, Hua Hong Semiconductor, and Innodisk [1]

Group 1 - The Hang Seng Index Company announced that the Hang Seng Hong Kong Stock Connect Software and Semiconductor Index will be renamed to the Hang Seng Hong Kong Stock Connect Software Theme Index, with changes to the calculation method and stock selection criteria [2][3] - The number of constituent stocks will be fixed at 40, with the inclusion of four new stocks: Yueda Group (00772), Qutoutiao (00917), Meitu (01357), and iClick Interactive Asia Group (01860) [2][4] - The removal of several stocks including ASMPT (00522), SMIC (00981), and Hua Hong Semiconductor (01347) will take effect on December 16, 2025, while the total number of constituent stocks will remain at 32 [2][5]

Group 1 - The Hang Seng Index Company announced that the Hang Seng Hong Kong Stock Connect Software and Semiconductor Index will be renamed to the Hang Seng Hong Kong Stock Connect Software Theme Index, with changes effective from December 16, 2025 [1] - The number of constituent stocks will be fixed at 40, with the addition of stocks such as Reading Group (00772), Qutoutiao (00917), Meitu (01357), and Huoli Technology (01860), while stocks like ASMPT (00522), SMIC (00981), and Hua Hong Semiconductor (01347) will be removed [1] - The calculation method of the index will be updated, including changes to the index objectives, stock selection criteria, industry requirements, and the introduction of new thematic requirements, buffer zones, and fast inclusion rules [1]