Southwest Securities·2025-07-26 13:04Group 1 - The core viewpoint of the report emphasizes the ongoing transformation in the media industry, particularly focusing on the gaming sector and the commercialization of AI applications [1][12] - As of June 30, 2025, the media industry index increased by 12.77%, outperforming the CSI 300 index by 12.74 percentage points and the ChiNext index by 3.99 percentage points [4] - The gaming sub-sector has shown the highest growth, with an increase of approximately 39.16% since the beginning of the year, while the publishing index saw a modest rise of about 1.30% [4] Group 2 - The report highlights a significant decline in the price-to-earnings (PE) ratios across various sub-sectors of the media industry, with the publishing sector at a relatively low PE of 19 times and the film and television sector at a higher PE of 46 times [6] - The current PE (TTM) for the media industry is around 43 times, which is above the historical valuation mean [6] Group 3 - The report notes that the Chinese gaming market reached a size of 28.05 billion yuan in May 2025, reflecting a year-on-year growth of 9.9% [13] - The report indicates a favorable policy environment, with various local governments providing financial support for high-quality gaming projects, including one-time grants of up to 5 million yuan [13] Group 4 - The gaming industry is characterized by two growth models: wave-type and step-type growth, with the former being influenced by new product cycles and the latter relying on core products with longer life cycles [14] - The report discusses the normalization of game license approvals, with 147 domestic game licenses and 11 imported licenses issued in June 2025, contributing to a robust supply of new content [15] Group 5 - The report identifies key companies in the media sector, such as Kuaishou, which launched the AI video generation model "Keling," and Kunlun Wanwei, which released the "Tiangong" AI model [24][31] - The report emphasizes the importance of AI applications in enhancing content creation and operational efficiency within the media industry [48]