GF SECURITIES·2026-01-25 11:08Core Insights - The report emphasizes the positive outlook for the internet media sector, particularly driven by AI advancements and strong performance in gaming and e-commerce segments [2][9][12] - It highlights the significant growth of Kuaishou's AI product, Keling, which has surpassed 12 million MAU and is expected to generate $140 million in revenue for 2025, exceeding initial targets [10][12] - The report suggests a focus on companies with strong product pipelines and innovative capabilities, particularly in gaming and AI applications [16][19] Group 1: Internet Sector - E-commerce: Continuous attention is recommended on AI narratives influencing stock prices, with Alibaba's recent developments expected to catalyze further stock performance [12][13] - Social Entertainment Media: Bilibili and Tencent are noted for their strong advertising momentum, with Tencent's gaming fundamentals improving and new game releases expected to enhance performance [13][16] - Internet Healthcare: JD Health and Alibaba Health are leveraging their platform advantages to deepen collaborations with upstream pharmaceutical manufacturers, leading to robust revenue and profit growth [13][19] Group 2: Gaming Sector - The gaming sector is expected to maintain a favorable outlook, with recommendations for leading companies like Tencent and NetEase, as well as promising titles from Century Huatong and Giant Network [16][18] - The report highlights the success of Giant Network's game "Supernatural Action Group," which has seen a rise in rankings and is expected to perform well during the upcoming Spring Festival [10][16] Group 3: AI Developments - Recent advancements in AI models and applications are noted, with significant releases from major players like Baidu and Tencent, indicating a competitive landscape in AI technology [11][19] - The report suggests monitoring AI applications in various sectors, including e-commerce, gaming, and healthcare, with specific companies recommended for investment based on their innovative capabilities [19][20] Group 4: Media and Advertising - The report discusses the impact of asset impairment on Focus Media, predicting a reduction in net profit for Q4 2025 but an increase in Q1 2026, indicating a one-time effect on performance [18] - It also highlights the potential for growth in the advertising sector, driven by increased investment from internet advertisers and upcoming major events that may boost advertising spending [18][19] Group 5: Long Video and Music Streaming - The long video sector is showing signs of recovery, with an increase in drama approvals and the release of quality content expected to enhance performance for platforms like iQIYI and Mango TV [15][16] - In music streaming, Tencent Music and NetEase Music are noted for their stable performance, despite concerns over competition, with a focus on the importance of quality content in driving subscriptions [15][16]