Core Viewpoint - The National Press and Publication Administration has approved a total of 173 games in August 2025, setting a new record for the year, with 166 domestic and 7 imported games approved, indicating a sustained high level of game license issuance in the industry [1][2]. Group 1: Domestic Game Approvals - Among the 166 domestic games, there are 17 mobile and client games, 2 client games, 1 PS5 game, and 146 mobile games, including 39 casual puzzle games [2]. - The cumulative number of game licenses issued in 2025 has surpassed 1,119, which includes 1,050 domestic and 69 imported games, representing an increase of 193 licenses compared to the same period last year [2]. Group 2: Listed Companies Involved - Key products from listed companies include NetEase's "Tianxia: Wanxiang," Icefire Network's "Super Energy Fighter" and "Qianji Array," and 37 Interactive Entertainment's "Super Cow Hero" and "Doupo Cangqiong: Dou Di Road" [2]. - Other notable companies with approved games include G-bits, ST Zhongqingbao, China Mobile's Migu Interactive Entertainment, Bilibili, Kying Network, Alibaba's Lingxi Interactive Entertainment, ST Huatuo, and Tom Cat [2]. Group 3: Imported Game Approvals - The imported games approved include Bilibili's "Dudu Face Prank," Tencent's "Kaeas Dreamland," and ST Huatuo's "Age of Discovery: Origin" [3].

Core Viewpoint - The approval of 166 domestic games and 7 imported games in August 2025 indicates a significant recovery and growth potential in the gaming industry, driven by policy support and an increase in game licenses issued [1][2][3]. Domestic Game Approval - A total of 166 domestic games received approval in August 2025, marking a new high for monthly approvals in recent years [3]. - Among the approved domestic games, 107 are mobile games, 39 are mobile casual puzzle games, 17 are both mobile and client games, 1 is a console game (PS5), and 2 are client games [2]. - Major companies like NetEase and Bilibili have notable titles approved, such as NetEase's "Tianxia: Wanxiang" and Bilibili's "Escape from Duckkov" [2]. Imported Game Approval - In August, 7 imported games received approval, including titles from major players like Bilibili and Tencent [2]. - The presence of established companies in both domestic and imported game approvals suggests a strong competitive landscape [2]. Industry Growth and Support - As of August 2025, a total of 1,119 games have received approval this year, with 1,050 being domestic and 69 imported, showing a significant year-on-year growth [3]. - Companies like Baotong Technology and Tom Cat have highlighted the positive impact of license issuance on the recovery of the domestic gaming industry, contributing to an improved overall industry ecosystem [3]. - Tom Cat also noted that various regions, including Beijing, Shanghai, and Guangdong, have introduced supportive policies for the gaming industry, fostering innovation and development [4].

Investment Rating - The report maintains an "Outperform the Market" rating for the media and internet sector [4][40]. Core Views - The media sector has shown a positive performance with a 6.47% increase, outperforming the CSI 300 index (4.90%) but underperforming the ChiNext index (8.62%) [11][12]. - Key highlights include the release of the second installment of "Black Myth," the introduction of 21 reform measures by the National Radio and Television Administration, and advancements in AI applications [3][17][38]. - The report emphasizes a positive outlook on AI applications and IP trends, suggesting that the industry is on an upward performance cycle [3][38]. Summary by Sections Industry Performance - The media sector's performance ranked 5th among all sectors this week, with notable gains from companies like Shunwang Technology and Guomai Culture, while Shanghai Film and Ice River Network faced declines [11][12]. Key Data Tracking - The box office for the week (August 17-24) reached 974 million yuan, with the top three films being "The Little Monster of Langlang Mountain" (290 million yuan), "Nanjing Photo Studio" (230 million yuan), and "Chasing the Wind" (167 million yuan) [2][19]. Investment Recommendations - The report suggests focusing on sectors such as gaming, advertising media, and film, with specific stock recommendations including Kaiying Network, Giant Network, and Yaoji Technology [3][38]. - It highlights the potential for growth in AI applications and IP trends, recommending companies like Pop Mart and Zhejiang Digital Culture [3][38]. Company Earnings Forecasts - Key companies such as Kaiying Network, Fenzhong Media, and Mango Super Media are rated as "Outperform the Market," with projected earnings per share (EPS) for 2025E and 2026E showing positive trends [4][40].

Investment Rating - The report maintains a "Buy" rating for the industry, indicating a positive outlook for the sector's performance [5][49]. Core Insights - The media industry saw a weekly increase of 5.17%, outperforming the Shanghai Composite Index and the CSI 300 Index, which rose by 3.49% and 4.18% respectively [11][19]. - Key companies such as KuaLing AI and Kunlun Wanwei reported significant revenue growth, with KuaLing achieving over 250 million in revenue for Q2 2025, exceeding expectations [2][46]. - The gaming market in China reached a size of 29.084 billion yuan in July 2025, with mobile gaming contributing significantly to this growth [3][25]. - The report highlights the successful release of AI applications and the cultural export theme as key investment themes, particularly in gaming, IP, short dramas, and publishing [4][47]. Market Performance - The media industry ranked 6th among all sectors with a weekly increase of 5.17%, while the gaming sector saw a rise of 6.09% [11][19]. - Notable performers included Guomai Culture and Shunwang Technology, with weekly increases of 24.79% and 24.16% respectively [19][20]. Key Data and Dynamics AI Applications - Recent downloads for AI applications on iOS showed varied performance, with Doubao leading at approximately 209.57 thousand downloads, while DeepSeek experienced a decline of 8.88% [2][23]. Gaming Sector - The mobile gaming market in July 2025 was valued at 21.36 billion yuan, with a year-on-year growth of 0.92% [3][25]. - The overseas revenue from self-developed games reached 1.693 billion USD, marking a year-on-year increase of 6.76% [28][29]. Film Industry - The total box office for the week of August 15-21 was 1.252 billion yuan, with "Wang Wang Mountain Little Monster" leading the box office [41][43]. Investment Recommendations - The report suggests focusing on AI applications and cultural export themes, with specific attention to companies like Giant Network, KuaLing, and Meitu [4][47].

Group 1 - The gaming sector is experiencing a triple boost from continuous policy support, industry recovery, and accelerated AI implementation [1][2] - The normalization of license approvals and the launch of new products during the summer will support performance realization in the short term [1][2] - AI technology is reshaping research and operations, driving cost reduction and efficiency improvements, as well as content upgrades in the medium term [1][4] Group 2 - The gaming industry's recovery is reflected in the sales revenue, which reached 29.084 billion yuan in July, showing a month-on-month increase of 8.14% and a year-on-year increase of 4.62% [3] - The mobile gaming segment continues to dominate, accounting for over 74% of the total revenue, with companies like Gigabit achieving a revenue of 2.518 billion yuan, up 28.49% year-on-year [3] - New game launches and long-term operations are becoming the core logic for industry growth, indicating a stable and positive trend [3] Group 3 - AI is significantly enhancing research and operations, with companies like Gigabit and Giant Network leveraging AI to reduce costs and improve efficiency [4] - The integration of AI in game development is leading to faster development cycles and improved player experiences, as demonstrated by various companies [4] - The large-scale implementation of AI technology is expected to enhance both competitive strength and player experience across the industry [4] Group 4 - Recommended stocks based on product validation and the summer window include Gigabit, Giant Network, 37 Interactive, and Perfect World [5] - Companies with outstanding AI capabilities include 37 Interactive and Kaiying Network [5] - Firms benefiting from policy support and cultural expansion include Shenzhou Taiyue, Century Huatong, and Zhongqingbao [5]

Group 1 - The report tracks stocks, industries, and sectors that are reaching new highs, serving as market indicators and highlighting the effectiveness of momentum and trend-following strategies [1][4][24] - As of August 22, 2025, the Shanghai Composite Index, Shenzhen Component Index, CSI 300, CSI 500, CSI 1000, CSI 2000, ChiNext Index, and Sci-Tech 50 Index all have a distance to their 250-day highs of 0.00%, indicating they are at their recent peaks [5][24] - Among the CITIC first-level industry indices, home appliances, defense and military, comprehensive, media, and computer industries are closest to their 250-day highs, while food and beverage, coal, real estate, banking, and consumer services are further away [8][24] Group 2 - A total of 1,606 stocks reached 250-day highs in the past 20 trading days, with the most significant numbers in the machinery, pharmaceuticals, and electronics sectors [2][13][24] - The highest proportion of new high stocks is found in the defense and military, non-ferrous metals, and pharmaceuticals industries, with respective proportions of 52.94%, 51.61%, and 44.88% [13][16] - The manufacturing and technology sectors have the most stocks reaching new highs this week, with respective counts of 512 and 403 [16][24] Group 3 - The report identifies 48 stocks that have shown stable new highs, with the technology and manufacturing sectors contributing the most, having 22 and 12 stocks respectively [3][21][25] - Within the technology sector, the electronics industry has the highest number of new high stocks, while the automotive industry leads in the manufacturing sector [21][25]

Market Performance - The gaming sector increased by 3.01% on August 22, with Kunlun Wanwei leading the gains [1] - The Shanghai Composite Index closed at 3825.76, up 1.45%, while the Shenzhen Component Index closed at 12166.06, up 2.07% [1] Individual Stock Performance - Kunlun Wanwei (300418) closed at 44.38, up 20.01% with a trading volume of 2.1688 million shares and a transaction value of 9.047 billion [1] - Shunwang Technology (300113) also saw a rise of 20.00%, closing at 27.24 with a trading volume of 866,700 shares [1] - Other notable performers included ST Dazheng (600892) with a 5.07% increase, and Zhejiang Shuju Culture (600633) with a 3.77% increase [1] Capital Flow Analysis - The gaming sector experienced a net inflow of 1.491 billion in main funds, while retail investors saw a net outflow of 637 million [2][3] - Main funds showed significant interest in Kunlun Wanwei with a net inflow of 1.28 billion, while retail investors had a net outflow of 400 million [3] ETF Performance - The Gaming ETF (product code: 159869) tracked the China Securities Animation and Gaming Index, with a recent five-day increase of 2.53% and a net inflow of 21.067 million [5] - The Food and Beverage ETF (product code: 515170) saw a five-day increase of 3.13% but experienced a net outflow of 23.49 million [5]

Core Viewpoint - The performance of the CSI 500 Growth ETF (159606) shows a slight increase, indicating a positive market sentiment towards growth stocks within the index [1] Group 1: ETF Performance - As of the midday close on August 22, the CSI 500 Growth ETF (159606) rose by 0.28%, priced at 1.057 yuan, with a trading volume of 5.4608 million yuan [1] - Since its inception on December 17, 2021, the fund has achieved a return of 5.30%, while the return over the past month is 7.65% [1] Group 2: Top Holdings Performance - Among the top holdings, Dongwu Securities increased by 1.17%, Huagong Technology surged by 7.94%, and Hengxuan Technology rose by 1.94% [1] - Conversely, companies like Kaiying Network and Huatai Medical experienced declines of 0.19% and 1.71%, respectively [1] - Other notable performances include Changjiang Securities up by 1.25% and Tianshan Aluminum up by 0.51% [1]

Investment Rating - The report maintains a "Market Perform" rating for the media sector relative to the Shanghai and Shenzhen 300 Index [1] Core Views - The report expresses a positive outlook on sub-sectors such as gaming, publishing, and IP derivatives, highlighting strong performance and growth potential in these areas [12][13] - The gaming market in H1 2025 reached new highs in both market size and user data, supported by favorable policies and the integration of AI technology [12][42] - The publishing sector shows stable demand for educational materials, with a recommendation to focus on state-owned companies with high dividend yields [13] - The film sector is expected to see improved performance in Q3 due to the summer box office demand, despite a weaker Q2 [14] Summary by Sections Investment Recommendations - Continuous optimism for gaming, publishing, and IP derivative sectors due to strong performance and growth potential [12] - Emphasis on the gaming sector's resilience and AI's role in enhancing valuation [12][42] - Recommendations to monitor companies with positive fundamentals ahead of the upcoming mid-year reports [12] Market Review - From July 21 to August 15, 2025, the media sector rose by 6.56%, outperforming the Shanghai and Shenzhen 300 Index [15][16] - The gaming and broadcasting sectors saw significant increases of 12.55%, while the publishing sector grew by 1.35% [16] - The overall PE ratio for the media sector as of August 15, 2025, is 31.11, significantly above the historical average [22] Industry News - New policies from the Shanghai Municipal Government aim to support high-quality internet content creation [23] - The approval of 127 domestic game licenses in July 2025 indicates a robust regulatory environment for the gaming industry [25] - The central government emphasizes the importance of artificial intelligence in driving economic growth and innovation [25] Monthly Data Film Market - In July 2025, the domestic film market generated a box office of 4.067 billion yuan, a year-on-year decrease of 24.38% [26] - The total box office for the first seven months of 2025 reached 33.299 billion yuan, reflecting a 13.72% increase year-on-year [26] Game Market - The domestic gaming market's actual sales revenue for the first half of 2025 was 168 billion yuan, marking a 14.08% year-on-year increase [42] - The user base for games reached 679 million, a 0.72% increase from the previous year [42]

Investment Rating - The report maintains an "Outperform the Market" rating for the media and internet sector [5][4][38] Core Views - The industry is experiencing an upward performance cycle, with a focus on AI applications and IP trends. The report emphasizes the importance of individual stock performance within gaming, advertising media, and film sectors [4][38] - Key highlights include the release of Google's efficient open-source AI model Gemma3 270M, the testing of Kuaishou's Keling 2.1 video generation model, and the popularity of the overseas AI product MuleRun, which offers a unique virtual machine environment for users [2][4][38] Summary by Sections Industry Performance - The media sector saw a slight increase of 0.20% during the week of August 11-15, underperforming compared to the CSI 300 index (2.13%) and the ChiNext index (8.17%) [12][4] - Notable gainers included Jishi Media and Youzu Network, while Beijing Culture and Light Media faced significant declines [12][4] Key Data Tracking - The box office for the week reached 1.274 billion yuan, with top films being "Wang Wang Mountain Little Monster" (408 million yuan, 32.4% share), "Nanjing Photo Studio" (338 million yuan, 26.8% share), and "Chasing the Wind" (192 million yuan, 12.9% share) [18][3] - In the gaming sector, the top three mobile games in July 2025 were "Whiteout Survival" and "Kingshot" by Diandian Interactive, and "Gossip Harbor: Merge & Story" by Lemon Microfun [26][3] Investment Recommendations - The report suggests focusing on gaming, advertising media, and film sectors, with specific stock recommendations including Kaiying Network, Giant Network, and Yaoji Technology for gaming; and Focus Media and Bilibili for advertising [4][38] - The report also highlights the potential of high-dividend, low-valuation stocks in the state-owned publishing sector, and the ongoing growth in IP trends and AI applications across various industries [4][38]