BABA(US:BABA) Shenwan Hongyuan Securities·2025-07-20 13:43Investment Rating - The report maintains a positive outlook on the A-share and Hong Kong stock market for quality media companies, indicating a "Look Favorably" investment rating for the industry [2]. Core Insights - The report emphasizes the sustainability of the current market trend for quality media companies, driven by global resonance in AI application commercialization and the self-consumption trends of Generation Z [2]. - It highlights the global competitive strength of sectors such as gaming, trendy toys, and AI tools, along with differentiated competition based on category and tone [2]. - The report identifies specific opportunities within the AI application chain, particularly in areas like AI advertising, education, and productivity tools, which are expected to see accelerated commercialization [2]. Summary by Sections AI Application - The report notes that the globalization and commercialization of AI applications are progressing rapidly, with significant potential in AI advertising, education, programming, and enterprise-level AI [2]. - Specific companies like Meitu and Kuaishou are highlighted for their strong growth potential in AI applications, with Meitu being noted for its unique global positioning and Kuaishou for exceeding commercialization expectations [2]. Gaming Sector - The gaming sector is experiencing short-term volatility; however, the fundamentals of key companies remain strong. New product launches are expected to stabilize performance [2]. - Companies like Giant Network and G-bits are mentioned for their upcoming releases and strong market positions [2]. Cloud Computing - AI is driving a recovery in cloud computing revenue growth, with a focus on internet cloud computing firms that have clear advantages in their own scenarios [2]. - Alibaba is specifically mentioned for its cloud computing direction, which is expected to continue to deliver value [2]. Consumer Trends - The report continues to recommend consumer brands like Pop Mart and NetEase Cloud Music, which are expected to benefit from market expansion and increasing paid user growth [2]. Valuation Table - A detailed valuation table is provided, showing the market capitalization, revenue, and profit forecasts for key companies in the gaming, film, and entertainment sectors, indicating growth rates and PE ratios for 2025 and 2026 [4].