Core Insights - The China Securities Index for online consumption (931481) has shown a 0.70% increase as of October 31, 2025, with notable gains in constituent stocks such as Kunlun Wanwei (300418) up by 4.27% and Yidian Tianxia (301171) up by 4.13% [1][2] - The online consumption ETF fund (159793) has risen by 1.48%, with a latest price of 1.1 yuan, and has accumulated a 1.60% increase for the month as of October 30, 2025 [1] - The index comprises 50 listed companies from mainland China and Hong Kong, focusing on sectors like online shopping, digital entertainment, online education, and telemedicine [1] Index Composition - As of September 30, 2025, the top ten weighted stocks in the online consumption index account for 55.76% of the total index, with Alibaba-W (09988) and Tencent Holdings (00700) being the largest contributors [2] - The weightings of the top ten stocks are as follows: Alibaba-W (11.77%), Tencent Holdings (10.24%), Kuaishou-W (6.37%), Meituan-W (5.50%), JD Health (4.86%), Giant Network (3.82%), Bilibili-W (3.74%), iFLYTEK (3.52%), Kaiying Network (2.98%), and Kunlun Wanwei (2.69%) [4]

Core Viewpoint - Bilibili-W (09626.HK) is expected to announce its Q3 2025 financial results on November 13, 2025, with optimistic revenue and profit forecasts indicating significant growth compared to the previous year [1]. Financial Performance Expectations - The consensus forecast for Q3 2025 indicates expected revenue between 76.00 billion and 77.78 billion CNY, representing a year-on-year growth of 4.0% to 6.5% [2][4]. - Net profit is projected to be between 2.36 billion and 3.61 billion CNY, showing a substantial year-on-year increase of 396.8% to 554.0% [2][4]. - Adjusted net profit is anticipated to range from 5.91 billion to 6.93 billion CNY, reflecting a year-on-year growth of 150.2% to 193.4% [2][4]. Business Segment Performance - Mobile gaming revenue is expected to reach 16 billion CNY, with a remarkable year-on-year growth of 60.1% [5][6]. - Advertising revenue is projected at 24 billion CNY, showing a year-on-year increase of 20.2%, with effective advertising revenue growing by 30% [5][6]. - The user base continues to expand, with daily active users reaching 109 million, an increase of 7% year-on-year, and monthly active users at 363 million, up 8% year-on-year [7]. User Engagement and Growth - Monthly paying users have surpassed 31 million, reflecting a year-on-year growth of 9% [7]. - The platform has achieved record highs in user traffic and engagement, with both MAU and DAU showing significant increases [7].

Core Viewpoint - Zhongyin International maintains a "Buy" rating for Bilibili-W (09626) and raises the target price from HKD 242 to HKD 270, while the target price for Bilibili (BILI.US) in the US market is increased from USD 31 to USD 35, also with a "Buy" rating [1] Group 1: Game Performance - Bilibili's self-developed mini-game "Escape from Duckkov" achieved 2 million sales globally on PC platforms from October 16 to October 28, exceeding market expectations [1] - The success of the game is attributed to its innovative PvE mode and high interactivity, which enhance the entertainment experience through frequent updates [1] Group 2: Future Growth Potential - The company anticipates that Bilibili may introduce official collaboration models, multi-terminal versions, controller support, and various IP operation forms, which will further unlock its value [1] - The blockbuster game is expected to drive a 2% increase in total revenue and a 10% increase in adjusted operating profit for Q4 2025 [1]

Core Viewpoint - Zhongyin International maintains a "Buy" rating for Bilibili-W (09626) and raises the target price from HKD 242 to HKD 270, while the target price for Bilibili (BILI.US) in the US market is increased from USD 31 to USD 35 [1] Group 1: Game Performance - Bilibili's self-developed mini-game "Escape from Duckkov" achieved 2 million sales globally on PC platforms from October 16 to October 28, exceeding market expectations [1] - The success of the game is attributed to its innovative PvE mode, high interactivity, and frequent updates that enhance the entertainment experience [1] Group 2: Future Growth Potential - The company is expected to introduce official collaboration models, multi-terminal versions, controller support, and various IP forms of operation, which will further unlock its value [1] - The blockbuster game is projected to drive a 2% increase in total revenue and a 10% increase in adjusted operating profit for Q4 2025 [1]

Investment Rating - The report maintains a recommendation for the industry [3] Core Insights - The release of Sora2 by OpenAI marks a second revolution in the AI video industry, showcasing significant technological breakthroughs and the integration of social interaction features [2][18] - The report highlights the rapid growth of "AI comic dramas" and other innovative content forms, which are expected to capture a larger share of internet usage among younger demographics [2][16] - The report identifies three key trends for the future of AI video applications: deep integration with social interactions, evolution towards an ecosystem represented by ChatGPT, and the combination with AI agents for comprehensive video creation solutions [7][17] Industry Overview - The industry consists of 160 listed companies with a total market capitalization of 1,947 billion and a circulating market value of 1,783.1 billion [3] - The absolute performance of the industry over 1 month, 6 months, and 12 months is -5.4%, 20.3%, and 27.7% respectively, while the relative performance is -8.5%, -3.8%, and 9.3% [5] Technological Breakthroughs - Sora2 has achieved three major technological advancements: realistic simulation of the physical world, multi-modal integration for simultaneous audio generation, and initial capabilities for narrative logic and editing akin to a director [18][51] - The report emphasizes the shift from professional tools to consumer-level applications, with AI video tools becoming more accessible and integrated into social platforms [43][44] Market Opportunities - Investment opportunities are identified in various sectors: - Film industry: AI video tools are revolutionizing traditional content production, creating new dynamics [7][8] - Gaming: AI video technology is enhancing game development and gameplay innovation, increasing commercial potential [7][8] - Intellectual Property (IP): AI video is accelerating the visualization of IP, reshaping industry value [7][8] Related Companies - Key companies mentioned include Tencent Holdings, Kuaishou, Bilibili, Meitu, Kunlun Wanwei, and Mango TV, among others, which are leveraging AI technologies to enhance their core business operations [8]

Core Points - The Federal Reserve has lowered the federal funds rate target range by 25 basis points to between 3.75% and 4.00%, marking the second consecutive rate cut [3] - The Fed announced it will end its balance sheet reduction plan on December 1, with the principal repayments from mortgage-backed securities to be reinvested in short-term Treasury bonds [5] - There is a notable division within the Fed regarding future monetary policy, with some members advocating for a more aggressive rate cut while others prefer to maintain current rates [5][6] Economic Indicators - The Fed acknowledged a lack of official economic data due to the federal government shutdown, complicating its understanding of the economic situation [5] - Current indicators suggest moderate economic expansion, with employment growth slowing and a slight increase in the unemployment rate, although it remains low [5] - Inflation has risen slightly compared to earlier in the year, remaining above desired levels [5] Market Reactions - Following the Fed's announcement and comments from Chairman Powell, major assets experienced significant volatility, with the Dow Jones falling by 0.16% and the Nasdaq rising by 0.55% [8] - Large tech stocks mostly saw gains, with Nvidia rising nearly 3% and achieving a market capitalization above $500 billion [10] - The dollar index increased, surpassing the 99 mark, while U.S. Treasury yields also saw upward movement [10]

Core Viewpoint - Bilibili's stock price increased by over 3%, reaching $30.89, following the successful launch of its game "Escape from Duckkov," which sold over 1 million copies in its first week globally [1] Group 1: Game Performance - "Escape from Duckkov," developed by Carbonated Squad and published by Bilibili, launched globally on October 16 [1] - The game achieved a significant milestone by surpassing 1 million copies sold within the first week of its release [1] Group 2: Revenue Projections - Everbright Securities maintains a "Buy" rating for Bilibili, projecting that "Escape from Duckkov" could ultimately sell over 3 million copies [1] - The expected revenue from the game is estimated to exceed 150 million yuan [1]

Core Viewpoint - The media sector has shown a notable performance this week, ranking 7th among all sectors in terms of price changes, with a 4.20% increase, outperforming the CSI 300 but underperforming the ChiNext Index [3]. Group 1: Industry Performance - The media industry increased by 4.20% during the week of October 20-24, 2023, outperforming the CSI 300's 3.24% but underperforming the ChiNext Index's 8.05% [3]. - The top gainers in the media sector included Rongxin Culture, Youzu Interactive, Haikan Co., and Jiayun Technology, while the biggest losers were Vision China, Tianxiaxiu, Xinghui Entertainment, and Gehua Cable [3]. Group 2: Key Events and Innovations - Significant events include the launch of OpenAI and Oracle's $15 billion Lighthouse Park, expected to be completed by 2028 [3]. - The introduction of the MoGA long video generation model by the University of Science and Technology of China and ByteDance, capable of producing high-quality videos with a resolution of 480p at 24 frames per second [3]. - ByteDance's Seed team has launched the 3D generation model Seed3D1.0, which can create high-quality simulation-level 3D models from a single image [3]. - Bilibili's "Escape from Duckkov" achieved over one million sales in its first week [3]. Group 3: Investment Recommendations - The company maintains a positive outlook on the gaming sector, IP toys, and the potential for policy shifts in the film industry, recommending stocks such as Giant Network, Kaiying Network, and Gigabit [5]. - For IP toys, Pop Mart is highlighted as a key recommendation [5]. - The media sector is advised to monitor potential economic recovery, with a focus on companies like Focus Media [5]. - The shift in content policies and AI application opportunities are emphasized, recommending platforms like Mango TV and Bilibili, as well as content providers such as Light Media and Huace Film [5].

Core Viewpoint - Bilibili's self-developed game "Escape from Duckkov" has achieved significant sales success shortly after its global release, indicating strong market demand and potential revenue growth for the company [1] Sales Performance - The game was launched on October 16, with a price of 58 yuan in the domestic market and an 88% discount during the initial release period [1] - Within just three days of its launch, the game sold over 500,000 copies, with a peak of over 220,000 online players [1] - As of the evening of October 22, sales surpassed 1 million copies, receiving 8,465 reviews on Steam, with 96% positive feedback [1] Revenue Projections - The research report from Everbright Securities estimates that the game's total sales could exceed 3 million copies, potentially generating over 150 million yuan in revenue [1]

Group 1 - The Hong Kong stock market indices experienced a decline, with the Hang Seng Tech Index dropping over 0.5% [1] - The largest ETF in the A-share sector, the Hang Seng Tech Index ETF (513180), followed the index's adjustment, with leading stocks such as ASMPT, Xiaomi Group, Li Auto, and Tongcheng Travel declining [1] - Bilibili, Kingsoft, and Xpeng Motors saw gains, with Bilibili rising over 7% [1] Group 2 - The game "Escape from Duckkov" achieved over 500,000 sales within three days of its release and surpassed 1 million sales in just one week [1] - The game received a 96% approval rating on the Steam platform, reaching "overwhelmingly positive" status, with peak online players nearing 520,000 [1] - "Escape from Duckkov" is published by Bilibili Games and developed by its in-house team "Carbonated Squad," featuring a duck-themed single-player top-down looting and evacuation shooting gameplay [1] Group 3 - Future market outlook suggests that significant policies, the APEC summit, and potential interest rate cuts by the Federal Reserve may lead to renewed market interest and increased trading activity [2] - The tech sector in Hong Kong is expected to benefit from current trends in AI, with foreign capital inflow potentially exceeding expectations due to the backdrop of interest rate cuts [2] - Investors without a Hong Kong Stock Connect account may consider the Hang Seng Tech Index ETF (513180) for exposure to core Chinese AI assets [2]