Summary of the Conference Call Industry Overview - The gaming industry is experiencing a new product cycle that drives performance growth for leading companies such as Giant and Jibite, with mobile gaming growing by 17% in the first half of the year. However, the suspension of game license approvals has caused performance fluctuations for some companies, making those with rich product reserves more advantageous [2][3][6]. Company Insights: Kaiyin - Kaiyin has been re-included in the "Golden Stock" list, achieving rapid progress through strategic investments and new contracts. The company has resolved legal disputes with Yumeide and maintained stable profitability after restructuring its business framework. Its main operations include R&D, publishing, and IP investment [2][4][5]. - The company has a strong presence in the "Legend" gaming sector, having launched "Miracle" with a peak MAU of 16 million. The Legend IP remains highly popular, with the global and domestic IP gaming market showing single-digit growth in the first half of 2025 [2][7]. - After the management takeover by Jin Feng, the company has streamlined operations, enhancing overall profitability through mergers and acquisitions. The current business structure includes R&D, publishing, and IP investment, which has laid a solid foundation for future growth [4][8][9]. Market Trends and Future Potential - The gaming industry still holds growth potential, especially for companies with rich product reserves, which may continue to see performance upgrades driven by new products. The mobile gaming sector achieved a 17% growth in the first half of 2025, indicating robust vitality [6]. - Despite challenges from the suspension of game licenses leading to the end of life cycles for older products, companies like Kaiyin and Perfect World, which have significant product reserves and expected discrepancies, are recommended as key investment targets [6]. Specific Strategies in the Legend Sector - Kaiyin has a well-defined strategy in the Legend sector, collaborating with Century Huachong and Tanwan to form a clear upstream and downstream deployment. This includes sharing technology platforms to enhance product supply capabilities and maintaining innovation through version iterations and continuous operations [11]. - The company is also investing in the SLG sector, with anticipated releases such as "Three Kingdoms: The World Returns" expected to contribute to revenue and profits in Q4 2025 or Q1 2026 [11]. Diversification Efforts - Beyond the Legend sector, Kaiyin is diversifying into other game series such as Hot River and Xianxia, as well as making strides in the SLG sector with major IP games expected to launch in Q1 2026. The company is also exploring new monetization avenues through mini-program games and AI applications, including the Soo platform and AI 3D companion product Eve [12]. Governance Improvements - Since Jin Feng's appointment, the company has made governance improvements, including a five-year no-reduction commitment and a recent buyback of 200 million. These measures address previous concerns and enhance shareholder returns, supporting the valuation through core drivers such as high-margin products and potential blockbuster logic [13]. Box Business Potential - The box business boasts over 90% gross margin and over 50% net margin, with significant order growth observed. Revenue for the first half of the year exceeded 600 million RMB, with expectations for accelerated growth in the second half. A price increase is also anticipated in October, indicating substantial integration and enhancement potential [14][15]. Impact of AI Technology - Although AI technology has not yet reflected in gaming sector premiums since 2024, the company has made notable advancements in AI applications. Innovations such as the Soo distribution platform and AI toys are expected to increase user engagement and generate advertising revenue, potentially enhancing valuation if blockbuster products emerge [16].

Investment Rating - The report maintains an "Outperform the Market" rating for the media industry [5][41]. Core Views - The media sector has shown a slight increase of 0.38% this week, outperforming the CSI 300 index which decreased by 1.01%, but underperforming the ChiNext index which increased by 1.22% [1][12]. - Key highlights include the rapid advancement of domestic 3D models and AI lightweight models, with the film "731" achieving a box office of nearly 1 billion yuan in its first three days [2][3]. - The report emphasizes the potential for growth in the gaming sector, advertising media, and film industries, suggesting a focus on individual stock opportunities [3][41]. Summary by Sections Industry Performance - The media industry rose by 0.38% from September 15 to September 19, outperforming the CSI 300 index but underperforming the ChiNext index [1][12]. - Notable gainers included Jishi Media, Guomai Culture, and Liou Co., while significant losers included Happiness Blue Sea and ST Huayang [1][12]. Key Developments - Tencent launched the Mixed Yuan 3D 3.0 model, enhancing modeling precision and production efficiency [2][16]. - Baidu's new model ERNIE-4.5-21B-A3B-Thinking topped the Hugging Face leaderboard, indicating strong performance in AI applications [2][17]. - The film "731" grossed approximately 1.065 billion yuan, accounting for 87.9% of the total box office for the week [3][19]. Market Data - The total box office for the week was 1.212 billion yuan, with "731" leading at 1.065 billion yuan [3][19]. - The report tracks the performance of various media segments, including films, TV shows, and games, highlighting the ongoing trends and audience engagement [24][25][29]. Investment Recommendations - The report suggests a continued positive outlook for the gaming sector and the potential recovery of the film industry, recommending stocks such as Kaiying Network and Jibite [3][41]. - It also highlights the importance of AI applications across various sectors, including marketing and entertainment, as key areas for investment [41][41].

Core Viewpoint - The A-share market is experiencing a strong performance in the online gaming sector, with several stocks reaching significant gains [1] Group 1: Stock Performance - Dongfang Mingzhu has reached the daily limit increase [1] - Shenzhou Taiyue and G-bits have increased by over 7% [1] - Kying Network and Kunlun Wanwei have risen by over 5% [1] - Xunyou Technology and Giant Network have gained over 4% [1]

Group 1 - The core viewpoint of the news is that Kaiying Network's stock has seen a significant increase, with a rise of 5.14% to 28.85 CNY per share, and a total market capitalization of 61.636 billion CNY [1] - Kaiying Network, established on January 3, 2000, and listed on December 7, 2010, primarily engages in game development, operation, and distribution, with mobile games accounting for 73.03% of its revenue [1] - The company's revenue composition includes 25.47% from information services, 1.50% from web games, and 0.00% from other businesses [1] Group 2 - According to data from the top ten holdings of funds, one fund under E Fund has a significant position in Kaiying Network, specifically the E Fund CSI 500 Quality Growth ETF, which reduced its holdings by 86,800 shares in the second quarter [2] - The current holding of the fund in Kaiying Network is 511,300 shares, representing 2.39% of the fund's net value, making it the second-largest holding [2] - The E Fund CSI 500 Quality Growth ETF has achieved a year-to-date return of 29.8% and a one-year return of 54.62% [2]

Investment Rating - The report maintains a "Buy" rating for the media industry, indicating a positive outlook for the sector [6][9]. Core Insights - The media industry saw a weekly increase of 0.92%, ranking 8th among industries, while the Shanghai Composite Index fell by 1.30% [12][19]. - Notable performers in the media sector included Xinghui Entertainment, Perfect World, and Mango Super Media, with significant weekly gains [19]. - The report highlights the growth of AI applications, with native AI software users reaching 277 million in August 2025, and Byte's Doubao surpassing Deepseek in monthly active users [23][24]. - The gaming segment is thriving, with the game "Delta Force" achieving over 30 million daily active users and topping the iOS sales chart [27][28]. - The film industry reported a total box office of 831 million yuan for the week, with the film "731" leading the box office [32][33]. Summary by Sections Market Performance - The media industry experienced a weekly increase of 0.92%, outperforming the Shanghai Composite Index, which fell by 1.30% [12][19]. - The gaming sector saw a 3.51% increase, while advertising and publishing sectors faced declines [15]. Key Industry Data - AI applications reported a user base of 277 million, with significant growth in Tencent's products [23][24]. - The iOS game sales chart was led by "Delta Force," followed by "Honor of Kings" and "Peacekeeper Elite" [27][28]. - The total box office for the week was 831 million yuan, with "731" accounting for 69.7% of the total [32][33]. Investment Recommendations - The report expresses optimism towards AI applications and cultural exports, focusing on sub-sectors like gaming, IP, short dramas, and publishing [37]. - Specific companies highlighted for investment include Giant Network, Perfect World, and Mango Super Media [37].

Group 1 - The wearable device industry is experiencing significant growth driven by favorable national policies and surging market demand, with shipment volumes increasing by over 60% year-on-year [1] - The National Sports Administration has issued guidelines to promote the digital and intelligent upgrade of health services, providing strong policy support for the application of wearable devices in health management, indicating the industry's elevation to a national strategic level [2] - Wearable devices are evolving from basic fitness tracking to advanced health management functions, such as continuous glucose monitoring and ECG recording, with potential applications expanding into healthcare and industrial internet sectors [2] Group 2 - According to IDC, the global wrist-worn device market is projected to grow by 12.3% year-on-year by Q2 2025, with China's market leading at a growth rate of 33.8%, and the adult smart watch market in China experiencing a remarkable 64% increase [4] - The market is showing a polarization trend, with growth rates of 66.1% for products priced below 1,000 yuan and 110.2% for high-end products priced above 2,000 yuan, indicating a simultaneous trend of market coverage and consumer upgrade [4] Group 3 - The thriving industry has attracted significant foreign capital interest, with 20 wearable device concept stocks being investigated by foreign institutions since July, highlighting companies like Luxshare Precision and Crystal Optoelectronics as popular targets [5] - Luxshare Precision revealed its extensive involvement in the AI glasses sector, supporting about one-third of the market, and maintaining deep collaborations with leading global clients, positioning itself for a competitive advantage [5] - As of mid-2023, 17 wearable device concept stocks have received substantial QFII investments, with a total market value of nearly 2.2 billion yuan, reflecting long-term confidence from foreign investors in core industry assets [5]

Market Overview - On September 22, the gaming sector rose by 0.16% compared to the previous trading day, with ST Huatuo leading the gains [1] - The Shanghai Composite Index closed at 3828.58, up 0.22%, while the Shenzhen Component Index closed at 13157.97, up 0.67% [1] Individual Stock Performance - ST Huatuo (002602) closed at 19.81, with a gain of 4.98% and a trading volume of 1.495 million shares, amounting to a transaction value of 2.924 billion [1] - Other notable gainers included *ST Dazheng (600892) with a 4.08% increase and ST Kaiwen (002425) with a 3.33% increase [1] - Conversely, 37 Interactive Entertainment (002555) saw a decline of 5.52%, closing at 22.24, with a trading volume of 1.5908 million shares and a transaction value of 3.588 billion [2] Capital Flow Analysis - The gaming sector experienced a net outflow of 1.484 billion from institutional investors, while retail investors saw a net inflow of 1.582 billion [2][3] - ST Huatuo had a net inflow of 2.26 billion from institutional investors, while retail investors had a net outflow of 960.133 million [3] ETF Performance - The gaming ETF (product code: 159869) tracking the China Securities Animation and Gaming Index increased by 3.64% over the past five days, with a net inflow of 17.632 million [5] - The food and beverage ETF (product code: 515170) decreased by 2.31%, with a net outflow of 24.043 million [5]

Group 1 - The core viewpoint of the articles highlights the performance of the gaming and cultural media sector, with notable stock movements in companies like NetEase Cloud Music and Liou Co., as well as the significant growth of the gaming media ETF [1][2] - As of September 19, the gaming media ETF has seen a net value increase of 79.20% over the past year, indicating strong market interest and performance in this sector [1] - The Delta Action game has topped the iOS sales chart, and its international version on Steam reached a peak of 226,000 concurrent players, showcasing the popularity and engagement of new gaming titles [1] Group 2 - Huayuan Securities notes that the current gaming market rally is based on product performance, EPS upgrades, and synchronized valuation recovery, suggesting that there is no strong bubble in valuations [2] - The report emphasizes two key strategies for continued focus on the gaming sector: the trading potential of major game titles and the structural growth opportunities in PC and mini-games [2] - The index tracks 50 listed companies involved in gaming, film, broadcasting, marketing, publishing, education, and cultural performances, reflecting the overall performance of the gaming and cultural media theme in the mainland and Hong Kong markets [2][3] Group 3 - As of August 29, the top ten weighted stocks in the index include Kuaishou-W, Tencent Holdings, and Bilibili-W, with these stocks collectively accounting for 54.14% of the index [3]

Group 1: Market Performance - The domestic semiconductor industry chain showed strong performance last week, with companies like Zhongwei and SMIC rising over 20% and 10% respectively, and several ETFs tracking semiconductor materials and equipment gaining over 7% [2] - The automotive and gaming sectors also performed well, with companies such as Sanhua Intelligent Control and CATL increasing over 20% and 13%, respectively, while related ETFs rose over 5% [2] - Conversely, sectors like precious metals, rare earths, and large financials saw declines, with some ETFs dropping over 4% [2] Group 2: ETF Trading Activity - Following the Federal Reserve's interest rate cut, trading activity in Hong Kong-themed ETFs significantly increased, with the E Fund CSI Hong Kong Securities Investment ETF surpassing 66 billion yuan in trading volume [3] - There was a notable net inflow of over 10 billion yuan into ETFs tracking securities companies and over 5 billion yuan into those tracking Hong Kong internet stocks [3] - Additionally, ETFs related to robotics and batteries also attracted substantial investments, with the E Fund National Index Robotics Industry ETF seeing a net inflow of over 2.7 billion yuan [3] Group 3: Market Style and Trends - The technology sector is entering a consolidation phase, with expectations of a structural shift in market style in the fourth quarter, potentially favoring cyclical stocks and previously lagging sectors [5] - The technology style may experience a "high cut low" trend, shifting focus from upstream computing hardware to a broader range of artificial intelligence applications [6] - The recent 25 basis point rate cut by the Federal Reserve is seen as a preventive measure, with implications for equity assets and industrial metals, while the impact on A-shares and Hong Kong stocks is expected to be limited [6]

Group 1 - Securities firms have conducted a total of 3,845 research activities involving 644 listed companies since September 21, with a focus on industries such as industrial machinery and electronic components [1][2] - The most frequently researched company is Lanke Technology, which has been surveyed by 54 securities firms, followed by Juguang Technology with 40 surveys [1] - Leading securities firms include CITIC Securities and Guotai Junan, each conducting 175 surveys, while Changjiang Securities has conducted 135 surveys [1] Group 2 - Among the 644 listed companies, 76 are in the industrial machinery sector, and 42 are in the electronic components sector, indicating a preference for these industries [2] - As of September 19, 288 of the surveyed stocks have seen price increases this month, with 24 stocks rising over 30%, led by World with a 76.94% increase [2] Group 3 - Key issues of interest in the surveys include companies' overseas expansion strategies, with Juguang Technology actively integrating its acquisitions in Switzerland and Singapore [3] - Companies like Kaiying Network reported a 59.57% year-on-year increase in overseas revenue in the first half of the year, focusing on enhancing their product matrix for international markets [3] - Analysts predict that a number of Chinese companies will emerge as influential players in international markets, potentially leading to greater valuation premiums for leading domestic firms [3]