NTES(US:NTES) Guoyuan Securities·2025-05-18 15:34Investment Rating - The report maintains a "Buy" rating for key companies in the media industry [4][7]. Core Insights - Tencent's Q1 performance exceeded expectations, with revenue of approximately 180 billion yuan, a year-on-year growth of 13%, and a gross profit of about 100.5 billion yuan, up 20% [39]. - The media industry saw a weekly decline of 0.77%, ranking 29th among industries, while the Shanghai Composite Index rose by 0.76% [10][17]. - The AI application user base in China reached 270 million in March 2025, with an 8.9% month-on-month growth, indicating a growing user habit [21]. - In April 2025, 33 Chinese companies entered the global mobile game publisher revenue TOP 100, collectively earning 2 billion USD, accounting for 38.4% of the total revenue of the TOP 100 [26][27]. Market Performance - The media industry (Shenwan) experienced a weekly decline of 0.77%, with the gaming sector down 1.22% and the film sector down 1.40% [10][12]. - Notable performers in the media sector included *ST Fanli and Xunyou Technology, with weekly gains of 15.11% and 14.26%, respectively [17][18]. Key Data and Dynamics AI Applications - The active user base for AI native applications in China reached 270 million, with daily usage time and frequency increasing by 32.7% and 53.1%, respectively [21]. - Major AI applications include Deepseek, Doubao, and Alibaba's Quark, with varying download trends [21][22]. Gaming - Tencent's "Honor of Kings" and "Peacekeeper Elite" topped the mobile game sales chart as of May 15, 2025 [25]. - Tencent's mobile game revenue increased by 10%, with significant contributions from "Kingshot" and "Honkai: Star Rail" [27][30]. Film - The total box office for the week of May 9-15, 2025, was 248 million yuan, with "Dumpling Queen" leading at 67.18 million yuan, accounting for 27.1% of the total [35][36]. - Upcoming films include 16 scheduled for release in the week of May 17-23, 2025, with high anticipation for "Lilo & Stitch" [37]. Industry Events and Announcements - ByteDance announced the open-source of the DeepResearch project, DeerFlow, aimed at enhancing AI capabilities [38]. - Tencent's Q1 financial report highlighted a significant increase in R&D investment, particularly in AI technologies [39].