Enlight Media(SZ:300251) Zhongyuan Securities·2025-12-25 09:00Investment Rating - The report maintains an "Outperform" rating for the media industry, relative to the Shanghai and Shenzhen 300 Index [1] Core Insights - The animation film industry is transitioning from a niche category to a significant player in the market, with domestic animated films accounting for nearly 50% of total box office revenue in 2025 [3][10] - The influence of domestic animated films is increasing, with their box office share rising from 32.28% (2013-2019) to 67.59% (2019-2025), and over 77% in 2025 [3][16] - The report suggests that the domestic animation film industry has substantial growth potential, particularly in comparison to the North American market, where animation films have a higher box office share [3][15] Summary by Sections 1. Performance of Animation Films - As of December 24, 2025, domestic animated films have generated over 250 billion CNY in box office revenue, representing nearly 50% of the total annual box office [3][10] - Animated films accounted for 64.97% and 62.77% of the top 10 and top 15 films by box office revenue in 2025, respectively [10] - Notable films such as "Nezha 2" and "Zootopia 2" have significantly contributed to this growth, with "Nezha 2" grossing 154.46 billion CNY [10][11] 2. Improvement in Domestic Animated Film Quality - The quality of domestic animated films has improved, with high ratings on platforms like Douban, where films like "Nezha: The Devil's Child" received scores of 8.4 [21] - The report highlights a shift in content style and audience demographics, leading to a higher influence of domestic animated films [16][18] 3. Potential of All-Age Animation Films - All-age animation films are becoming the main box office drivers, appealing to a broader audience across different age groups [27] - The report emphasizes the importance of diverse content that caters to various viewer preferences, enhancing the overall viewing experience [27][28] 4. Advantages of IP Animation Films - IP adaptation has proven to be a significant revenue driver, with 49% of animated films contributing to 92% of box office revenue [36] - The report notes that adaptations of Chinese mythology and literature have particularly strong box office performance [36] 5. Opportunities for Overseas Expansion - Despite the success of domestic animated films, their overseas revenue generation remains low, with only about 3% of "Nezha 2" revenue coming from international markets [42] - The report identifies a gap in overseas market penetration compared to American and Japanese animated films, which have a more substantial international presence [42][45] 6. Technological and Policy Support - Government policies are increasingly supportive of the animation industry, promoting quality development and the integration of AI technologies [48][49] - AI is expected to enhance production efficiency and creativity in animation filmmaking, further driving industry growth [50][51] 7. Key Players in the Domestic Animation Film Industry - Major companies in the domestic animation film sector include Light Chaser Animation, Huayi Brothers, and others, with significant projects in development [53][54][56] - Light Chaser Animation is highlighted for its strong brand presence and project pipeline, including sequels and new adaptations [54][59]