Core Insights - HOY Media Network, a subsidiary of i-CABLE Communications Limited, is set to transform its content offerings and expand its reach internationally, focusing on four key pillars: News & Finance, Sports, Music & Entertainment, and Lifestyle Variety [3][9] - The network will continue its exclusive broadcast of the Asian Games for the eighth consecutive year, streaming over 1,000 local and international sporting events [5] - A new variety show lineup includes programs aimed at younger audiences, such as "I Want to Be a YouTuber," alongside flagship shows returning for 2026 [7] News & Finance - HOY will enhance its news content with more analytical and in-depth coverage, including a special series on Hong Kong IPOs and the milestone 1,000th episode of its flagship news program "On the Frontline" [4] Sports - The network has secured exclusive broadcast rights for the "20th Asian Games Aichi–Nagoya 2026," promising extensive coverage of local and national athletes [5] - HOY will provide thousands of hours of streaming for the Asian Games, including live competitions and the Hong Kong Sports Stars Awards [5] Music & Entertainment - HOY is creating a pop music space of over 10,000 square feet to support local artists and collaborate with international record labels, aiming to elevate Cantopop on a global scale [6] - The program "Canto Song for Everyone" will feature local musicians teaming up with cross-regional artists for special performances [6] Lifestyle Variety - New lifestyle-driven content will cater to diverse audiences, with shows like "The Ninth Fortune Guestroom" and "Drink Across Asia" focusing on quality living [7] - Programs will also address popular themes such as travel and wellness, appealing to a broad demographic [7] Brand Evolution - HOY Media Network's rebranding reflects its commitment to broadening perspectives and maximizing the impact of Hong Kong stories through innovative content [3][9] - The launch event at FilmArt 2026 showcased the network's upgraded content pillars and cultural identity, enhancing audience engagement [8]

Summary of Conference Call Notes Industry Overview - The report focuses on the **SMID (small-mid cap) Internet/Media sector in China** and reflects recent secular changes in the industry [2][4]. Key Companies and Ratings - **Damai**: Maintained an Overweight (OW) rating; price target raised from HK$0.58 to HK$1.20, reflecting a 107% increase [3][15]. - **37 Interactive Entertainment (37IE)**: Maintained OW rating; price target increased from RMB 23.00 to RMB 25.90, a 13% rise [4][15]. - **Maoyan**: Downgraded from OW to Equal-weight (EW); price target adjusted from HK$7.50 to HK$8.00, a 7% increase [6][15]. - **JOYY**: Maintained EW rating; price target raised from US$40.00 to US$62.00, a 55% increase [4][15]. - **IQIYI**: Maintained EW rating; price target increased from US$2.10 to US$2.30, a 10% rise [4][15]. - **Focus Media**: Preferred over Weibo due to expected growth from self-help initiatives [6]. Core Insights - **IP Derivatives Demand**: There is a growing demand for IP derivatives in China, with Damai positioned to benefit from its domestic sub-licensing business [3]. - **Long Video and Live-Streaming**: These sectors are entering a more favorable policy environment, with valuations currently below historical levels. Price targets for JOYY and HUYA have been lifted due to improving trends [4]. - **Gaming Sector**: Smaller game companies are experiencing a re-rating due to successful new titles, leading to raised earnings forecasts for 2025/26 [5]. - **Film Industry Challenges**: Film companies may face difficulties in re-rating due to muted industry growth and weaker visibility for fundamentals, leading to downgrades for Maoyan and others [6]. Additional Insights - **Branding Advertising**: The branding advertising industry is not expected to recover immediately, but Focus Media is seen as a better investment compared to Weibo due to its strategic initiatives [6]. - **Valuation Adjustments**: The report includes various valuation adjustments for companies based on earnings revisions and shifts to sum-of-the-parts (SOTP) valuation methods [15]. Market Performance - The report provides a detailed analysis of stock price performance over different time frames, indicating significant variances in performance among the companies covered [12]. Conclusion - The SMID Internet/Media sector in China is undergoing significant changes, with varying growth prospects across different segments. Companies like Damai and 37IE are favored for their growth potential, while challenges remain for the film industry and certain live-streaming platforms.