Huachuang Securities·2025-05-19 00:20Investment Rating - The report maintains a "Recommendation" rating for the media industry, suggesting that the industry index is expected to rise more than 5% over the next 3-6 months compared to the benchmark index [48]. Core Viewpoints - The media sector is currently experiencing a downturn, with the media index down 0.77% last week, underperforming the CSI 300 index, which rose by 1.12% [10][4]. - The report emphasizes the importance of AI applications and cultural confidence as key drivers for the media sector, with a focus on core assets in the internet, gaming, and publishing sectors [7][8]. - The gaming market is expected to benefit from product cycles and AI integration, with specific companies highlighted for their strong product pipelines [19][20]. - The film market shows signs of recovery, with ticket sales reaching 24.116 billion yuan and total viewership at 576 million, indicating a recovery rate of approximately 100% for box office revenue compared to 2019 [23][24][25]. Summary by Sections Market Performance Review - The media index fell by 0.77% last week, while the CSI 300 index increased by 1.12%, resulting in a relative underperformance of 1.88% [10]. - The report notes that the gaming market remains strong, with several Tencent and NetEase products leading the iOS sales charts [19][20]. Industry News and Company Announcements - Significant advancements in AI technology are noted, including the launch of new models by major companies like Baidu and Tencent, which are expected to enhance user experience and application capabilities [32][33]. - The report highlights the ongoing recovery in the film industry, with a notable increase in ticket sales and audience numbers compared to previous years [23][24]. - Upcoming films and their expected release dates are listed, indicating a robust pipeline for the cinema sector [29][30].