Group 1 - Bilibili (BILI) is part of the Consumer Discretionary sector, which includes 266 stocks and has a Zacks Sector Rank of 15 [2] - Bilibili currently holds a Zacks Rank of 2 (Buy), with the consensus estimate for its full-year earnings increasing by 18.9% in the past quarter, indicating improved analyst sentiment [3] - Year-to-date, Bilibili has returned 42.5%, significantly outperforming the Consumer Discretionary sector's average return of 2% [4] Group 2 - Bilibili belongs to the Broadcast Radio and Television industry, which consists of 19 companies and is ranked 145 in the Zacks Industry Rank, with an average gain of 19.8% this year [6] - In contrast, Atour Lifestyle Holdings Limited Sponsored ADR (ATAT), which is in the Leisure and Recreation Services industry ranked 90, has a year-to-date return of 59.5% despite its industry declining by -2.1% [4][7]

Core Insights - The rapid growth of micro-short dramas has led to content homogenization and rising costs, prompting a shift towards "manhua dramas" as a new opportunity in the industry [1][2][3] - The manhua drama market is characterized by its speed, lightness, and broad appeal, with significant investments from platforms and listed companies [1][2][3] Market Overview - The micro-short drama market in China reached a scale of 504 billion yuan in 2024, with over 6.62 million users [2] - The manhua drama sector is expected to exceed 200 billion yuan by 2025, with a monthly compound growth rate of 92% in viewership and 105% in likes [1][3][7] Industry Dynamics - Major players in the manhua drama space include Douyin, Kuaishou, and listed companies like Yu Wen Group and Zhongwen Online, all of which are rapidly expanding their presence [1][2][3] - The production cost for regular dramas has risen to between 400,000 to 700,000 yuan per episode, with high-quality productions exceeding 1 million yuan [2] Technological Impact - AI technology is seen as a key driver for efficiency in the manhua drama sector, allowing for faster production at lower costs [4][7] - Companies like Yu Wen and Zhongwen Online are leveraging AI to produce content, with plans to release hundreds of manhua dramas annually [4][5] Competitive Landscape - The competition in the manhua drama market is shifting from technical efficiency to storytelling quality and commercial ecosystem [7][8] - Industry experts emphasize the importance of content quality, with a focus on narrative over technology [8] Business Models - Current revenue models in the industry primarily rely on "traffic investment and recharge," indicating a need for innovative business strategies [8] - For example, traffic revenue accounts for 30% to 40% of profits for companies like Soy Sauce Animation [8]

Investment Rating - The report maintains a "Recommendation" rating for the media industry, expecting the industry index to outperform the benchmark index by over 5% in the next 3-6 months [2][40]. Core Views - The media sector is anticipated to experience a rebound, particularly in gaming and AI applications, with significant growth potential in these areas. The report emphasizes the importance of both sharpness and allocation in the current market environment [3][6]. - The gaming market is highlighted as entering a favorable valuation zone, with specific companies like Giant Network and Century Huatong recommended for investment [6][16]. - The film market is recovering, with the total box office reaching approximately 437.06 billion yuan, which is about 78% of the 2019 level, indicating a strong recovery trajectory [19][20]. Market Performance Review - The media sector index fell by 3.86% last week, underperforming the CSI 300 index, which rose by 1.28%, resulting in a relative underperformance of 5.14% [9][10]. - The total market capitalization of the media sector is approximately 19,595.28 billion yuan, with a circulating market value of 17,850.96 billion yuan [3]. Gaming Market Insights - Tencent's products dominate the iOS gaming market, with titles like "Peace Elite" and "Love and Deep Space" performing strongly [16]. - Upcoming game releases include "Rust" and "PUBG: BLACK BUDGET," which are expected to generate significant interest [18]. Film Market Overview - The film "Zootopia 2" has achieved a box office of nearly 23 billion yuan within six days, with projections suggesting it could help the total annual box office exceed 500 billion yuan [27]. - The total box office for the year has reached 437.06 billion yuan, with a recovery rate of approximately 78% compared to 2019 [19][22]. Important News and Company Announcements - The establishment of the first micro-short drama export base in Shanghai marks a significant development in the media industry [27]. - Tencent's Magic Cube Studio celebrated its 15th anniversary, announcing major updates for several IP titles, indicating ongoing innovation in the gaming sector [28].

Core Viewpoint - The financial market is experiencing fluctuations with a slight tightening of liquidity, a rebound in the bond market, and a collective rise in convertible bond indices, while U.S. Treasury yields are generally on the rise. Group 1: Domestic News - Chinese Vice Premier He Lifeng held a video call with U.S. Treasury Secretary Janet Yellen and Trade Representative Katherine Tai to discuss the implementation of agreements from recent high-level meetings, emphasizing the importance of continued cooperation in economic and trade relations [2] - The China Securities Regulatory Commission (CSRC) Chairman Wu Qing highlighted the need to develop first-class investment banks and institutions to support high-quality capital market development, advocating for a shift from price competition to value competition and better service to the real economy [3] - The CSRC is soliciting public opinions on the draft of the "Regulations on the Supervision of Listed Companies," which aims to strengthen comprehensive regulation throughout the lifecycle of listed companies [4] Group 2: Monetary Policy and Market Operations - The People's Bank of China conducted a 139.8 billion yuan reverse repurchase operation at a fixed rate of 1.40%, resulting in a net withdrawal of 161.5 billion yuan due to maturing reverse repos [9] - The overall liquidity in the market remains loose, with the DR001 and DR007 rates slightly increasing to 1.300% and 1.438%, respectively [10] Group 3: Bond Market Dynamics - The bond market showed signs of recovery, with the yield on the 10-year government bond decreasing by 2.15 basis points to 1.8285% as market sentiment improved following rumors of policy easing [12] - The secondary market for credit bonds saw significant price deviations, with "22 Vanke 02" dropping over 11% and "21 Vanke 02" falling over 10% [14] - Several companies, including Zhengyuan Real Estate and Fusheng Group, received public reprimands from the Shanghai Stock Exchange for disclosure violations [15] Group 4: Convertible Bonds - The convertible bond market experienced a collective rise, with major indices increasing by approximately 0.94% to 0.98%, and a total trading volume of 601.53 billion yuan, reflecting a significant increase from the previous day [17] - Several convertible bonds are set to trigger price adjustment clauses, while others announced early redemption [19] Group 5: International Market Insights - U.S. Treasury yields rose across various maturities, with the 2-year yield increasing by 4 basis points to 3.56% and the 10-year yield rising by 3 basis points to 4.14% [20] - Major European economies also saw an increase in 10-year government bond yields, with Germany's yield rising by 3 basis points to 2.80% [22]

Core Viewpoint - Chinese assets have shown a strong rebound, with significant gains in various indices and stocks, indicating renewed interest from global investors in the Chinese market [1][2]. Group 1: Market Performance - The Nasdaq Golden Dragon Index rose by 1.29%, and the three-times leveraged FTSE China ETF surged over 4%, reversing a week-long decline [1][2]. - Popular Chinese concept stocks experienced substantial increases, with Dingdong Maicai rising over 10% and Baidu increasing nearly 6% [1][2]. - Multiple foreign institutions have released optimistic reports on Chinese assets, with Morgan Stanley redefining the Chinese stock market as a "growth market" [2]. Group 2: Economic Outlook - Morgan Stanley set a target for the CSI 300 Index at 4840 points by December 2026, suggesting a forward P/E ratio for the MSCI China Index in the range of 12 to 13 times [2]. - JPMorgan's Rajiv Batra noted that the Chinese stock market is in the early stages of recovery, with attractive valuations and relatively low holding levels [2][3]. - Various institutions, including OECD and Goldman Sachs, have raised their GDP growth forecasts for China, with Goldman Sachs adjusting its 2025 forecast from 4.9% to 5.0% [3]. Group 3: Federal Reserve's Interest Rate Expectations - The U.S. core PCE price index for September rose by 0.2% month-on-month and 2.8% year-on-year, aligning with expectations and reinforcing the likelihood of a rate cut by the Federal Reserve [4][5]. - The probability of a 25 basis point rate cut in December has risen to 87.2%, with expectations for further cuts in early 2026 [5][6].

Overall Performance - Bilibili has achieved positive adjusted net profit for five consecutive quarters as of September 2025, with stable revenue growth and significant improvement in profitability [1][23] - In Q3 2025, Bilibili's total revenue grew by 5.2% year-on-year, reaching 7.69 billion yuan, with revenue performance remaining stable since achieving quarterly profitability in Q3 2024 [3][25] - The company's EBIT (operating profit) showed a strong growth trend, with a year-on-year increase of 630.9% in Q3 2025, indicating continuous improvement in operational efficiency [5][28] - Adjusted net profit increased by 233% year-on-year to 790 million yuan, with gross margin rising for 13 consecutive quarters to 36.7%, marking a historical high in quarterly gross profit of 2.82 billion yuan [7][31] Revenue Structure Optimization - Total revenue for the first three quarters of 2025 reached 22.023 billion yuan, a year-on-year increase of 15.3%, with the breakdown as follows: - Value-added services revenue decreased by 3 percentage points to 39% of total revenue - Advertising revenue increased by 2 percentage points to 32% of total revenue, totaling 7.018 billion yuan, up 21% year-on-year - Gaming revenue for the first three quarters was 4.851 billion yuan, a year-on-year increase of 27.2%, accounting for 22% of total revenue - IP derivatives and other revenue fell by 5.1% year-on-year to 1.487 billion yuan, representing only 7% of total revenue [10][37] - In Q3 2025, the average monthly paying users grew by 17% year-on-year to 35 million, with 25.4 million being premium members, reflecting enhanced user willingness to pay and boosting value-added services revenue [13][38] - The rapid growth of advertising revenue is squeezing the share of other business segments in total revenue, establishing it as a new growth driver for the company [12][36] Future Development - Bilibili is deepening the application of AI across multiple fields, which helps reduce advertising costs and improve efficiency, while also showing a steady increase in AI content playback duration over three consecutive quarters [21][44] - The company is accelerating community expansion through content innovation and new game releases, with significant user growth in the second half of the year, reaching the highest daily new user count in October [21][44] - Upcoming game releases, such as "Escape from Duckkov," show potential for becoming a hit, while the new game based on the "Three Kingdoms" IP is expected to launch in Q1 2026, demonstrating the company's commitment to building an IP matrix [23][47] - The introduction of video podcasts as a new content format amidst fierce competition in short videos has garnered significant attention, with "premiumization" remaining a key direction for Bilibili's content development [23][47]

Core Insights - The report from China Merchants Securities International predicts an acceleration in AI model integration by 2026, with the U.S. leading in advanced agents and multimodal models like GPT-5 and Gemini 3, while China is rapidly closing the gap through efficient open-source models, creating intense competition in the global market [1] Industry Summary - Cloud capital expenditures remain high to meet the surging demand for inference, indicating a robust investment environment in AI technologies [1] - The emergence of AI agents is expected to trigger a competitive battle for traffic entry points in 2026, highlighting the strategic importance of AI in future market dynamics [1] Company Preferences - The firm maintains a favorable view on large tech companies for their optimal positioning in AI monetization, leveraging strong core businesses to subsidize AI investments and implement monetization strategies [1] - In the Chinese internet sector, the preferred order of segments is advertising > cloud > gaming > value-added services > e-commerce = local services > live streaming, indicating a strategic focus on advertising and cloud services [1] - The firm continues to favor companies with characteristics such as stable profit growth, competitive moats, good risk-reward profiles, and substantial shareholder returns, with top picks being Tencent, Alibaba, and Bilibili [1] - In the U.S. stock market, the preferred order for large tech companies is Alphabet > Meta > Amazon > Microsoft, reflecting a strategic preference based on their capabilities in AI [1]

Core Insights - Bilibili (B站) has successfully engaged 1.13 million participants in its charity initiatives, raising nearly 30 million yuan, with 90% of donors being under 30 years old, highlighting the "Z Generation" as a key force in charitable donations [1][2] - The platform has committed to rural education by planning the construction of 8 charity primary schools, benefiting 7,195 students and 351 teachers, and aims to enhance educational quality in remote areas [3][4] Group 1: Charity Participation - The "lightweight" charity participation model has attracted a large number of young users, with 90% of donations coming from individuals under 30 years old, showcasing the enthusiasm and responsibility of the "Z Generation" [2] - In the past year, 1,774 content creators (UP主) have actively joined charity efforts, generating over 200 million views on related content, fostering a collaborative charity atmosphere [2] - Documentaries and creative projects have effectively raised funds, with the documentary "闪闪的儿科医生2" raising nearly 140,000 yuan for critically ill children, and the project linked to the IP "时光代理人" raising over 120,000 yuan for anti-bullying initiatives [2] Group 2: Rural Education Initiatives - Since 2019, Bilibili has initiated a rural primary school construction plan, with the latest school planned in Yunnan, covering two provinces and significantly improving educational access for children in remote areas [3] - The charity schools integrate cultural and educational elements, with content creators providing specialized courses and engaging students in learning through creative methods [3] - The newest school will incorporate traditional Yi culture through wrestling, enhancing local cultural appreciation among students [3] Group 3: Innovative Charity Models - Bilibili has established the "快乐奖学金" (Happy Scholarship) to convert community engagement into funding for rural education, with 4.19 million joyful comments translating into financial support for educational projects [4] - The scholarship has funded 30 innovative educational projects and supported over 5,500 children in pursuing their interests, such as astronomy and music [4] - The company aims to continue leveraging its community's unique characteristics to promote a vibrant and impactful charity model [5]

Market Performance - The three major US stock indices closed mixed, with the Dow Jones down 0.07% at 47,850.94 points, the S&P 500 up 0.11% at 6,857.12 points, and the Nasdaq up 0.22% at 23,505.14 points [1] - Popular tech stocks showed mixed performance, with Meta rising over 3% and Nvidia up over 2%, while Amazon and Apple fell over 1% [1] - Popular Chinese concept stocks also had mixed results, with NIO up over 4% and XPeng up over 3%, while Baidu and Bilibili rose over 1%, and Miniso and Yum China fell over 1% [1] - European stock indices all closed higher, with Germany's DAX up 0.87% at 23,899.33 points, France's CAC40 up 0.43% at 8,122.03 points, and the UK's FTSE 100 up 0.19% at 9,710.87 points [1] Commodity Prices - US oil main contract rose 1.27% to $59.7 per barrel, while Brent crude main contract increased 1.04% to $63.32 per barrel [1] - International precious metal futures closed mixed, with COMEX gold futures up 0.13% at $4,237.9 per ounce, and COMEX silver futures down 1.86% at $57.53 per ounce [1] - London base metals showed mixed results, with LME lead up 0.85% at $2,016.00 per ton, LME zinc up 0.65% at $3,085.00 per ton, and LME nickel up 0.08% at $14,885.00 per ton, while LME aluminum down 0.33% at $2,887.50 per ton, LME copper down 0.47% at $11,434.00 per ton, and LME tin down 0.59% at $40,540.00 per ton [1] Bond Yields - US Treasury yields collectively rose, with the 2-year yield up 3.71 basis points at 3.521%, the 3-year yield up 4.78 basis points at 3.545%, the 5-year yield up 4.51 basis points at 3.673%, the 10-year yield up 3.48 basis points at 4.098%, and the 30-year yield up 2.39 basis points at 4.755% [1] - European bond yields mostly increased, with the UK 10-year yield down 1.3 basis points at 4.433%, Germany's 10-year yield up 2.4 basis points at 2.769%, Italy's 10-year yield up 2.2 basis points at 3.466%, and Spain's 10-year yield up 2.6 basis points at 3.243% [1]

第 1 頁 共 12 頁 v 1.1.1 | 3. 股份分類 | 其他分類 (請註明) | 股份類別 | 其他類別 (請註明) | 於香港聯交所上市 (註1) | 否 | | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | N/A | 說明 | 未指定 | | | | 2. 股份分類 | 不同投票權架構公司普通股 | 股份類別 | 其他類別 (請註明) | | 於香港聯交所上市 (註1) | | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 09626 | 說明 | Z類 | | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | | 法定/註冊股本 | | | 上月底結存 | | | 9,800,000,000 USD | | | 0.0001 | USD | | 980,000 | | 增加 / 減少 (-) | | | | | | | USD | | | | 本月底結存 | | | 9,800,000, ...