Core Viewpoint - The Shanghai Composite Index fell by 0.13% on July 9, with the media and agriculture sectors showing the highest gains, while the non-ferrous metals and basic chemicals sectors experienced the largest declines [1] Market Performance - 17 out of the 28 sectors in the market saw an increase, with the media sector leading at a rise of 1.35% and agriculture at 0.65% [1] - The media sector attracted a net inflow of 10.55 billion yuan, while the overall market saw a net outflow of 38.54 billion yuan [1][2] - The electronic sector had the largest net outflow of 7.79 billion yuan, followed by non-ferrous metals with 5.41 billion yuan [1] Media Sector Analysis - The media sector had 130 stocks, with 97 rising and 29 falling; 2 stocks hit the daily limit up while 1 hit the limit down [2] - The top three stocks with the highest net inflow in the media sector were: - Zhongwen Online: 446 million yuan - Zhangyue Technology: 241 million yuan - Huanrui Century: 186 million yuan [2] - The stocks with the largest net outflow included: - ST Huayun: -101 million yuan - Xinghui Entertainment: -73 million yuan - Shenzhou Taiyue: -66 million yuan [3] Fund Flow in Media Sector - The media sector saw a total of 63 stocks with net inflows, with 6 stocks having inflows exceeding 100 million yuan [2] - The media sector's inflow and outflow rankings highlight significant movements in capital, indicating investor sentiment and market dynamics [2][3]

Group 1 - The core index of the A-share market, the CSI 800 Media Index, closed at 2669.42 points, with a one-month increase of 7.50%, a three-month increase of 18.18%, and a year-to-date increase of 14.45% [1] - The CSI 800 Media Index is categorized into 11 primary industries and 35 secondary industries, providing analytical tools for investors [1] - The top ten weighted stocks in the CSI 800 Media Index include: Focus Media (14.92%), Giant Network (8.79%), Kaineng Network (8.62%), Yanshan Technology (7.8%), Kunlun Wanwei (7.29%), Light Media (7.18%), Shenzhou Taiyue (6.35%), BlueFocus Communication Group (5.75%), Perfect World (5.19%), and Mango Super Media (4.03%) [1] Group 2 - The industry composition of the CSI 800 Media Index shows that gaming accounts for 28.94%, other advertising and marketing for 14.92%, film and animation for 12.88%, publishing for 9.63%, and other digital media for 7.80% [2] - The index sample is adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December [2] - In cases of special events affecting a sample company's industry classification, the CSI 800 Industry Index will be adjusted accordingly [2]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The report emphasizes the significance of the "Touch and Go" feature in elevator media and the collaboration with Alipay, which is expected to enhance advertising efficiency and contribute to revenue growth [3][5] - The acquisition of Chengdu Xinchao Media Group is projected to increase the company's coverage and improve single-point efficiency, further solidifying its market leadership [9] Summary by Sections Company Overview - The company, Focus Media (分众传媒), is a leading player in elevator media advertising in China, with a total of 3.06 million advertising points as of March 2025, including 1.26 million elevator TV media and 1.8 million elevator poster media [3] Recent Developments - On June 24, 2025, Alipay announced the launch of the "Touch and Go" feature, allowing users to interact with advertisements in elevators to receive rewards, thereby linking online and offline advertising [3] - The company plans to acquire 100% of Chengdu Xinchao Media Group for an estimated valuation of 8.3 billion [2] Market Dynamics - The instant retail market is experiencing rapid growth, and the competition is intensifying. Focus Media is expected to benefit from increased advertising budgets from instant retail companies [5] - The report notes that the outdoor advertising market is showing a steady increase, with a 6% year-on-year growth in Q1 2025 [9] Financial Projections - Revenue projections for 2025-2027 are estimated at 13.53 billion, 14.49 billion, and 15.54 billion respectively, with year-on-year growth rates of 10.4%, 7.1%, and 7.2% [9] - The expected net profit for the same period is projected to be 5.56 billion, 5.98 billion, and 6.53 billion, with growth rates of 7.7%, 7.7%, and 9.1% [9][10] Strategic Implications - The integration of Xinchao Media is anticipated to enhance the company's bargaining power and improve the efficiency of advertising points, benefiting both the company and its advertisers [8] - The "Touch and Go" feature is expected to reshape marketing value by providing detailed consumer data and enhancing user engagement for Alipay [8]

特别提示： 1、分众传媒信息技术股份有限公司（以下简称"公司"）已披露的《公司发 行股份及支付现金购买资产暨关联交易预案》的"重大事项提示"及"重大风险 提示"章节中，已详细披露了公司拟发行股份及支付现金购买资产（以下简称"本 次交易"）可能存在的风险因素及尚需履行的其他程序，敬请广大投资者注意投 资风险。 2、截至本公告披露日，除《公司发行股份及支付现金购买资产暨关联交易 预案》披露的风险因素外，公司尚未发现可能导致本次交易中止、取消或者对本 次交易方案作出实质性变更的相关事项，本次交易工作正在有序进行中。 一、本次交易的基本情况 公司拟以发行股份及支付现金的方式购买张继学、重庆京东海嘉电子商务有 限公司、百度在线网络技术（北京）有限公司等 50 个交易对方持有的成都新潮 传媒集团股份有限公司 100%的股权。 证券代码：002027 证券简称：分众传媒 公告编号：2025-045 分众传媒信息技术股份有限公司 关于发行股份及支付现金购买资产暨关联交易的进展公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，简明清 晰，通俗易懂，没有虚假记载、误导性陈述或重大遗漏。 本次交易预计不构成重大资产重 ...

Group 1 - The core index of the cultural and entertainment sector, the CSI Cultural and Entertainment Media Index, has shown a mixed performance with a recent increase of 0.32%, closing at 838.13 points and a trading volume of 24.477 billion yuan [1] - Over the past month, the CSI Cultural and Entertainment Media Index has risen by 4.00%, 3.36% over the last three months, and 7.93% year-to-date [1] - The index includes companies involved in video, live streaming, gaming, film, IPTV/OTT, digital publishing, digital marketing, online education, and event performances, reflecting the overall performance of listed companies in the cultural, entertainment, and media sectors [1] Group 2 - The top ten weighted stocks in the CSI Cultural and Entertainment Media Index include: Focus Media (10.22%), China Duty Free Group (8.17%), Giant Network (4.54%), Kaiying Network (4.46%), Kunlun Wanwei (3.92%), 37 Interactive Entertainment (3.91%), Light Media (3.89%), Shenzhou Taiyue (3.42%), Leo Group (3.16%), and BlueFocus Communication Group (3.12%) [1] - The market distribution of the index holdings shows that 73.62% are from the Shenzhen Stock Exchange and 26.38% from the Shanghai Stock Exchange [1] Group 3 - The industry composition of the index holdings indicates that communication services account for 87.58%, consumer discretionary for 11.15%, and information technology for 1.27% [2] - The index samples are adjusted biannually, with adjustments implemented on the next trading day following the second Friday of June and December each year [2] - In special circumstances, the index may undergo temporary adjustments, such as when a sample company is delisted or undergoes mergers, acquisitions, or splits [2] Group 4 - Public funds tracking the cultural and entertainment sector include the Huaxia CSI Cultural and Entertainment Media ETF [3]

Group 1: Market Overview - In June 2025, the media sector (Shenwan Media Index) rose by 8.40%, outperforming the CSI 300 Index by 5.90 percentage points, ranking 7th among 31 industries [12][17] - The current TTM-PE for the Shenwan Media Index is 47.9x, positioned at the 87th percentile over the past five years, indicating a relatively high valuation [17] - Notable stock performances included Giant Network, Lianjian Optoelectronics, and ST Guangwang with significant gains, while Xiangyuan Cultural Tourism and Youzu Network faced declines [20] Group 2: Gaming Sector - A total of 147 domestic games and 11 imported games were approved in June, maintaining a high level of issuance, with 812 game licenses granted in the first half of 2025, a year-on-year increase of 17.9% [23] - The Chinese gaming market generated revenue of 28.1 billion yuan in May, reflecting a 10% year-on-year growth, with mobile games achieving 21.2 billion yuan in revenue, up 12% [26] - The gaming sector is expected to see upward valuation adjustments driven by new product launches, regulatory policies, and AI applications [2][4] Group 3: Film and Television Sector - The total box office in June reached 1.906 billion yuan, down 14.6% year-on-year, but showing a 9.7% month-on-month increase [50] - The top five films in June included "Mission: Impossible 8" and "Detective Conan: The Eye of the One-Horned," indicating a gradual recovery in box office performance [53] - The summer film season is critical, with over 60 films scheduled for release, and the performance of new films like "731" and "The Lychee of Chang'an" is being closely monitored [61] Group 4: AI Applications - The 2025 Global Unicorn List highlighted SpaceX, ByteDance, and OpenAI as the top three companies, with valuations of 2.6 trillion yuan and 2.2 trillion yuan respectively [77] - OpenAI launched the Deep Research API, designed for advanced analysis and deep information synthesis, indicating significant advancements in AI capabilities [78] - ByteDance introduced the VINCIE-3B image editing model and the EX-4D video generation framework, showcasing breakthroughs in AI-driven content creation [80][84]

Investment Rating - The report maintains an "Outperform" rating for the media and internet sector [4][39]. Core Views - The report expresses a positive outlook on the gaming sector and AI applications, particularly in the context of the summer box office and the rapid iteration of AI models and applications [2][3][37]. - The media sector has shown a 2.39% increase, outperforming both the CSI 300 (1.54%) and the ChiNext Index (1.50%) during the week of June 30 to July 6, 2025 [1][11]. Summary by Sections Industry Performance - The media sector's performance for the week was a 2.39% increase, ranking 6th among all sectors [1][11][12]. - Notable gainers included companies like Gigabit Network and Giant Network, while companies like Ciweng Media and Bona Film Group experienced declines [1][11]. Key Developments - Apple has adjusted its EU App Store rules to comply with the Digital Markets Act, providing developers with more operational flexibility [2][15]. - WeChat Pay launched the MCP feature, allowing AI to directly process payments during user interactions, paving the way for AI commercialization [2][16]. - MiniMax released the world's first open-source large-scale hybrid architecture inference model, ranking second in global evaluations [2][16]. - Google introduced the Gemini for Education AI tool suite, which is free for schools using the platform [2][17]. Investment Recommendations - The report suggests a focus on sectors such as gaming, advertising media, and film, with specific stock recommendations including Kaiying Network, Giant Network, and Yaoji Technology [3][37]. - The report highlights the potential for growth in high-demand IP toys and AI applications, recommending companies like Pop Mart and Zhejiang Cultural [3][37]. Company Earnings Forecasts - Key companies such as Kaiying Network, Fenzhong Media, and Mango Super Media are rated as "Outperform" with projected earnings per share (EPS) growth for 2025 and 2026 [4][39].

Group 1 - The main point of the article highlights significant net inflows into the real estate, beauty care, and diversified finance sectors, while the electronic, communication, and machinery equipment sectors experienced substantial net outflows [1][2][3] - The real estate sector saw a net inflow of 10.62 billion, accounting for a net inflow rate of 10.03% [2] - The beauty care sector recorded a net inflow of 5.56 billion, with a net inflow rate of 17.68% [2] Group 2 - The electronic sector faced the largest net outflow, totaling 30.35 billion, with a net outflow rate of -3.64% [3] - The communication sector experienced a net outflow of 23.07 billion, reflecting a net outflow rate of -7.03% [3] - The machinery equipment sector had a net outflow of 16.30 billion, with a net outflow rate of -3.97% [3] Group 3 - Qingdao Kingway topped the list of stocks with the highest net inflow, attracting 5.77 billion, with a net inflow rate of 39.75% [4] - Hai Lian Jin Hui and Wang Zi New Materials also saw significant net inflows of 3.22 billion and 3.21 billion, respectively [4] - Zhongji Xuchuang was the stock with the highest net outflow, with a total of 6.56 billion, reflecting a net outflow rate of -13.05% [5] Group 4 - New Yisheng and Huayin Electric followed Zhongji Xuchuang in net outflows, with 3.72 billion and 3.58 billion, respectively [5] - Lixun Precision also experienced a notable net outflow of 3.05 billion [5] - The overall trend indicates a shift in investor sentiment, favoring certain sectors while pulling away from technology-related stocks [1][3]

Investment Rating - The report maintains an optimistic outlook for the Hong Kong stock market, particularly for new IPOs and sectors like new consumption and innovative pharmaceuticals [8]. Core Insights - The report highlights that the recent subsidies from food delivery e-commerce platforms directly benefit coffee, tea, and advertising channels [8]. - The education sector remains robust, with leading institutions expanding market share and developing AI products for international education [3][19]. - The luxury goods sector is experiencing slight pressure from macroeconomic factors, but brands with strong innovation capabilities are still seeing growth [20]. - The coffee and tea industry is in a growth cycle, with coffee demand remaining strong, while tea faces short-term challenges due to increased competition [27]. - E-commerce is under pressure with slowing growth rates, but instant retail is emerging as a new battleground [31]. - The travel and OTA sectors are seeing limited impact from recent subsidies, with a focus on undervalued leading players [8]. - Music streaming platforms are identified as quality internet assets driven by domestic demand, with ongoing developments in subscription services [36]. - The virtual asset market is on an upward trend, supported by traditional financial institutions entering the space [40]. - The real estate market is under pressure, particularly in major cities, with a focus on opportunities in companies like Beike [8]. - The automotive service market is experiencing a decline, with a continued focus on ecosystem changes [8]. Summary by Sections 1. Education - The K12 education sector remains highly prosperous, with leading institutions reporting good summer enrollment progress and a focus on AI product development [3][19]. - The education index saw a decline of 1.78% during the reporting period, outperforming the Hang Seng Technology Index but underperforming other major indices [10]. 2. Luxury Goods - The luxury goods sector is slightly pressured by macroeconomic factors, with notable growth in brands with strong innovation [20]. - Key luxury stocks showed positive performance, with Samsonite and Prada increasing by 5.61% and 6.09% respectively [20]. 3. Coffee and Tea - The coffee sector remains in a growth cycle, with strong demand and a high frequency of consumption [27]. - The tea sector faces short-term challenges due to increased competition and supply growth [27]. 4. E-commerce - The e-commerce sector is experiencing a slowdown, with significant competition impacting profitability [31]. - Instant retail is becoming a new focus, with major platforms launching aggressive subsidy plans [31]. 5. Travel and OTA - The travel sector is seeing limited impact from subsidies, with a focus on undervalued leading players [8]. 6. Music Streaming - Music streaming platforms are identified as high-quality assets driven by domestic demand, with ongoing developments in subscription services [36]. 7. Virtual Assets - The virtual asset market is on an upward trend, with traditional financial institutions increasingly entering the space [40]. 8. Real Estate - The real estate market is under pressure, particularly in major cities, with a focus on opportunities in companies like Beike [8]. 9. Automotive Services - The automotive service market is experiencing a decline, with a continued focus on ecosystem changes [8].

Investment Rating - The report maintains an "Overweight" rating for the internet media industry, indicating a positive outlook for the sector's performance relative to the overall market [2]. Core Insights - The report highlights four key growth drivers for the gaming sector: 1. Demand from younger generations (post-90s and post-00s) and overseas markets, with AI potentially creating new gameplay experiences. 2. Companies that have focused on project development and improved their R&D capabilities over the past five years are now better positioned to create high-quality products. 3. Competition in gaming is shifting towards differentiation rather than price competition. 4. Despite product cycles, improvements in industrial processes can lead to sustained growth [2]. Summary by Sections Gaming Sector - The report identifies several companies with promising new products that could drive mid-term growth, including: - Giant Network's "Supernatural Action" and Century Huatong's "Whiteout Survival" and "Kingshot" [2]. - Companies like 37 Interactive Entertainment and Kying Network are noted for their strong new game reserves and AI strategies [2]. AI Applications - The report emphasizes the commercial potential of AI applications, citing successful products like Kuaishou's AI video tools and Meitu's consumer-focused AI offerings [2]. - AI's impact on advertising revenue for companies like Tencent and Bilibili is highlighted as an area of growth [2]. Entertainment and Consumer Trends - The report recommends companies involved in trendy consumer products, music, and live events, such as Pop Mart and NetEase Cloud Music, which are benefiting from increased engagement from younger audiences [2]. - The integration of media networks with platforms like Alipay is expected to enhance the value of companies like Focus Media [2]. Valuation Metrics - A detailed valuation table is provided, showing projected revenues and profits for key companies in the gaming and entertainment sectors, with Tencent's market cap at 41,505 million RMB and a projected PE ratio of 16 for 2025 [4].