NTES(US:NTES) Guoxin Securities·2025-06-10 02:05Investment Rating - The report maintains an "Outperform" rating for the media and internet sector [5][39]. Core Viewpoints - The short-term performance cycle is improving, and there is a long-term positive outlook on AI applications and IP trends [3][36]. - The media sector has shown a 3.50% increase, outperforming both the CSI 300 (1.73%) and the ChiNext Index (3.17%) [12][13]. - Key companies to watch include Kayi Network, Mango Super Media, and ByteDance, with significant developments in AI technology and gaming collaborations [3][5][18]. Summary by Sections Industry Performance - The media sector rose by 3.50% from June 2 to June 6, 2025, with notable gainers including ST Huicheng and Youzu Network, while losers included Rongxin Culture and Light Media [12][13]. - The top three films for the week generated a total box office of 3.55 billion yuan, with "Mission: Impossible 8" leading at 1.48 billion yuan [2][20]. Key Developments - OpenAI has partnered with the Indian government to launch AI education initiatives, marking its first international expansion [16][17]. - ByteDance released the SeedEdit3.0 image editing model, capable of processing 4K images with advanced editing features [17]. - Kuaishou's Keling AI has integrated video generation technology into NetEase's game "Nirvana in Fire," enhancing social gameplay [18]. Investment Recommendations - The report suggests focusing on gaming, advertising media, and film sectors, with specific stock recommendations including Kayi Network and Giant Network [3][36]. - The report emphasizes the potential of high-demand IP trends and AI applications across various sectors, including education and e-commerce [3][36]. Company Earnings Forecasts - Key companies such as Kayi Network and Mango Super Media are projected to have improved earnings per share (EPS) in the coming years, with Kayi Network expected to reach an EPS of 1.00 yuan in 2025 [5][39].