TENCENT(HK:00700) Hua Yuan Zheng Quan·2025-08-24 13:49Investment Rating - The investment rating for the media and internet industry is "Positive" (maintained) [4] Core Insights - The report emphasizes the importance of focusing on companies with better-than-expected mid-year performance, which can indicate industry development directions and short-term trading flexibility. High-growth sectors include gaming, trendy toys, and AI applications [4][5][6][10]. Summary by Sections Gaming Sector - The gaming sector is experiencing a peak with new game releases and significant updates to existing titles. Companies like Tencent and Gigabit are showing resilience and growth driven by new games. The report suggests focusing on major gaming companies exploring AI integration in gaming [5][6][10]. Trendy Toys Sector - Pop Mart achieved a revenue of 138.8 billion yuan in the first half of 2025, a year-on-year increase of 204.4%. The sector remains highly prosperous, with more companies entering the trendy toy market. The report recommends monitoring companies involved in card games and trendy toys for their growth potential [6][25]. Film and Television Sector - The report notes that quality films are being released during the summer season, which is expected to drive steady growth in box office revenues. It suggests paying attention to key film producers and cinema companies. The television sector is also set to benefit from new policies aimed at enhancing content supply [7][8][44]. Internet Sector - The report advises a rational assessment of platform strategies in the context of reducing competition. It highlights the importance of major companies like Tencent and Alibaba, which are expected to maintain their performance resilience. The focus is on AI technology and applications as core to industry development [9][10]. AI Applications - The report highlights the release of GPT-5 and the ongoing advancements in AI models. It suggests monitoring domestic AI companies for their model updates and the impact on various application sectors, including education and e-commerce. Companies involved in AI-driven live streaming and digital content creation are also recommended for attention [10][11][12]. Market Performance - The media sector saw a 5.17% increase in the A-share market from August 18 to August 22, 2025, ranking sixth among all industries. The gaming, digital media, and television broadcasting sub-sectors performed well, while film and advertising sub-sectors lagged [15][17][18]. Company Announcements - Gigabit reported a revenue of 2.518 billion yuan for the first half of 2025, a year-on-year increase of 28.49%. Pop Mart's revenue for the same period was 138.76 billion yuan, reflecting a significant growth trajectory. Other companies like Kuaishou and Bilibili also reported strong earnings growth [26][27][29][30].