Wanlian Securities·2025-05-15 12:43Investment Rating - The report maintains an "Outperform" rating for the media industry, indicating a projected increase of over 10% relative to the market in the next six months [5][46]. Core Insights - The SW media industry index rose by 6.37% in Q1 2025, with high capital activity and a valuation (PE-TTM) that has adjusted, outperforming the average level of the past seven years [2][13]. - The fund's heavy allocation in the media industry remains low, with the gaming and advertising sectors being the focal points of market attention, maintaining an overweight position [3][4]. - The top ten heavy stocks in the media sector are dominated by gaming companies, reflecting high market interest, with notable performance from Light Media, which saw a stock price increase of 123.83% [3][26]. Summary by Sections 1. Capital Activity and Valuation - The SW media industry index closed at 671.01 points on March 31, 2025, up from 630.85 points at the beginning of the quarter, with an average daily trading volume of 58.085 billion yuan [13]. - As of May 8, 2025, the PE-TTM for the SW media industry was 27.39 times, a 5.37% increase compared to the seven-year average [15]. 2. Fund Heavy Allocation and Concentration - The allocation ratio for the SW media industry in Q1 2025 was 1.71%, with a fund heavy allocation ratio of 1.04%, indicating a low allocation level [17][20]. - The number of heavy allocation stocks accounted for 51.15% of the total, ranking 13th among all industries, showing a slight decrease in concentration [23]. - The gaming sector occupied six of the top ten heavy stocks, with significant market attention [26]. 3. Investment Recommendations - The report suggests focusing on leading companies in the gaming and advertising sectors, particularly those with rich game license reserves and AI application layouts [43].