GF SECURITIES·2026-01-04 06:54Core Insights - The report maintains a "Buy" rating for the internet media sector, highlighting strong performance in gaming and social entertainment media, with companies like Bilibili and Tencent outperforming the market [3][4][8] - The report emphasizes the potential of AI applications and the gaming sector, predicting continued industry growth in 2026 [14][19][22] Group 1: Internet Sector - E-commerce: The report notes that the national subsidy policy for 2026 is expected to be slightly better than anticipated, although recent e-commerce performance remains weak [19][20] - Social Entertainment Media: Bilibili and Tencent's advertising performance continues to exceed market expectations, with Tencent's gaming fundamentals improving [19][20] - Internet Healthcare: JD Health and Alibaba Health are leveraging their platform advantages to deepen cooperation with upstream pharmaceutical manufacturers, leading to strong revenue and profit growth [20] Group 2: Media Sector - Gaming: The report remains optimistic about the gaming sector's performance driven by fundamentals, recommending leading companies such as Tencent and NetEase [22][23] - Advertising: The report discusses recent adjustments by Focus Media regarding its acquisition of New Wave, reflecting concerns about growth impacts from reduced investment [23][24] - Publishing: Some publishing companies are facing negative impacts from educational reforms, leading to delays in revenue recognition [24] Group 3: Key Company Analysis - Tencent Holdings: The company reported a revenue of 192.9 billion RMB for Q3 2025, with a year-over-year increase of 15% [29] - Kuaishou: The company achieved a total revenue of 35.6 billion RMB in Q3 2025, with a year-over-year increase of 14% [30] - Bilibili: The company reported total revenue of 7.685 billion RMB in Q3 2025, with a year-over-year increase of 5% [31]