Summary of Conference Call Notes Industry Overview - The gaming sector has undergone significant adjustments, leading to a current valuation that is considered moderately low, presenting an attractive investment opportunity for 2026 [1] Key Insights and Arguments - The gaming sector is expected to see continuous catalysts in the near future, making it a recommended area for investment focus [1] - Specific highlights from subsidiaries include: - WOK/KS maintaining strong rankings in January [1] - TastyTravels is anticipated to become a standout performer in 2026 [1] - Upcoming catalysts include: - A third test scheduled for early February, with expectations for a launch in Q2 2026 [1] - The release of new games coinciding with strong seasonal periods, such as winter break and the Spring Festival [1] - New SLG games have received approval for domestic release [1] - 2026 is projected to be a significant year for product launches, with investments in multiple AI applications [1] - The overseas version of Heart Town has been launched, along with the introduction of Dirichlet advertising aggregation [1] Important but Potentially Overlooked Content - Risk factors include the possibility that the launch progress or quality of new games may not meet expectations, as well as the risk of a significant downturn in macroeconomic growth [1]

Core Viewpoint - Xindong Company (02400) experienced a significant stock increase, with an early morning rise of over 8%, and a current increase of 6.42%, trading at HKD 87.85, with a transaction volume of HKD 156 million [1] Group 1: Game Launch and Performance - The international version of "Xindong Town" was launched on January 8, achieving the top position on free charts in over 50 countries and regions, including the United States, Japan, and the United Kingdom, with over 5 million new users in the first week [1] - As of January 23, the download count for "Xindong Town" international version surpassed 10 million [1] Group 2: Market Analysis and Future Prospects - Open Source Securities reported that the sustained user growth exceeds expectations, potentially laying the groundwork for future revenue increases, with a steady rise in concurrent users on the Steam platform, which may further contribute to revenue growth [1] - Guojin Securities noted that the international version of "Xindong Town" is gaining traction on social media platforms, with a significant amount of user-generated content (UGC) that holds social display value, suggesting that as players progress in the game and unlock more features, they are likely to share more content on social media, which could further expand the game's user base [1]

Core Insights - The A-share market indices collectively rose on Tuesday, with the Shanghai Composite Index up by 0.18%, the Shenzhen Component Index up by 0.09%, and the ChiNext Index up by 0.71%. The total trading volume in the Shanghai and Shenzhen markets reached 28,947.28 billion yuan. The electronic, communication, and defense industries led the gains, while coal, agriculture, forestry, animal husbandry, and steel sectors lagged behind [2][8] - In January 2025, the total profit of national industrial enterprises above designated size reached 7.4 trillion yuan, marking a year-on-year increase of 0.6%, reversing a three-year decline. Notably, profits in December turned from a 13.1% decline in November to a 5.3% increase [3][9] Industry Analysis Food and Beverage Sector - The heavy holding ratio in the food and beverage sector continues to decline, with the ratio dropping to 2.61% in Q4 2025, down 0.20 percentage points from the previous quarter, significantly below the historical average of 6.77% since 2018. The sector ranks sixth among 31 first-level industries in terms of heavy holding ratio [10][11] - Within the sector, the heavy holding ratio for sub-sectors excluding liquor has rebounded. The liquor segment's heavy holding ratio has decreased significantly, with a current ratio of 2.26%, down 0.23 percentage points. Other sub-sectors like seasoning and fermented products, dairy beverages, and snacks have seen slight increases in their heavy holding ratios [10][11] - Investment recommendations suggest that the liquor industry is in a bottoming phase, with low valuations and high dividends providing strong support for stock prices. The expectation is that the inventory destocking cycle will continue into the first half of 2026, with a potential turning point in the second half of 2026 [11][19] Consumer Sector - The heavy holding ratio in the consumer sector has declined for seven consecutive quarters, reaching a historical low of 4.41% in Q4 2025, significantly below the historical average of 10.94% since 2018. Most consumer sub-sectors have seen a decrease in heavy holding ratios, with only light industry manufacturing, commercial retail, and social services showing slight increases [10][19] - Investment suggestions highlight that the current domestic consumption remains weak, with government policies expected to stimulate consumption. Specific recommendations include focusing on the liquor industry, where the market has absorbed pessimistic expectations, and on other food and beverage segments where raw material costs are declining [19][20] Gaming Industry - In January 2026, the number of approved game licenses increased, with a total of 182 games approved, representing a year-on-year growth of 33.82%. This includes 177 domestic games and 5 imported games, indicating a stable recovery in the gaming sector [15][16] - The game "Rainbow Six: Siege" has been highlighted for its tactical shooting gameplay, which is expected to enhance competition in the FPS segment. The game is positioned to leverage Tencent's ecosystem to build community and esports infrastructure [16][17]

Core Insights - The report highlights the overall positive trend in the A-share market, with various sectors such as finance, semiconductors, and aerospace showing strong performance, while some sectors like coal and pharmaceuticals lag behind [5][8][12] - The report emphasizes the importance of macroeconomic data and policy changes in guiding investment strategies, suggesting a balanced approach to portfolio allocation [7][11][33] Domestic Market Performance - The Shanghai Composite Index closed at 4,139.90 with a slight increase of 0.18%, while the Shenzhen Component Index closed at 14,329.91, up by 0.09% [3] - The average price-to-earnings ratio for the Shanghai Composite and ChiNext Index stands at 16.93 and 53.33 respectively, indicating a favorable long-term investment environment [7][12] International Market Performance - Major international indices such as the Dow Jones and S&P 500 experienced declines of 0.67% and 0.45% respectively, while the Nikkei 225 saw a modest increase of 0.62% [4] Industry Analysis - The report discusses the media sector, noting a decrease in fund holdings in Q4 2025, with a significant focus on the gaming sub-sector, which remains highly favored among institutional investors [13][16] - The automotive industry is projected to achieve record production and sales in 2025, driven by policies encouraging vehicle upgrades and a strong demand for electric vehicles [31][33] Investment Recommendations - The report suggests focusing on sectors with strong fundamentals and high dividend yields, such as traditional engineering machinery and shipbuilding, while also highlighting opportunities in emerging technologies like humanoid robots and AI applications [17][18][22] - Specific companies to watch include major players in the gaming sector and those involved in AI applications, as they are expected to benefit from favorable market conditions and technological advancements [16][27]

AI工具已深度融入中国厂商的日常运营流程，46%的AI助手交互聚焦于报表查看与数据解读，有效应对 营销规模扩大与数据碎片化带来的挑战。AppsFlyer游戏业务产品总监亚当·斯马特(Adam Smart)表示， AI提升了游戏产品与营销内容触达市场的速度和规模，当前营销成功的关键在于高效解读海量碎片化 信号并快速行动。 （文章来源：中国新闻网） 数据显示，2025年全球游戏应用获客支出达250亿美元，同比增长3.8%。尽管美国市场仍占据全球半壁 江山，但预算流向同比下降5%，而土耳其、印度等新兴市场成为增长主力，分别实现29%和19%的同比 增长。 在此背景下，中国出海厂商逆势突围，不仅在Android平台表现突出，更在美、英、德、法等竞争激烈 的西方主流市场取得显著增长，展现出强劲的市场竞争力。AI技术的全面渗透成为中国厂商出海的重 要助力。2025年，在AI内容创作支持下，游戏厂商素材产出规模大幅提升，头部厂商每季度制作的素 材版本数量达2400–2600个，同比增长25%–30%。 中新社北京1月27日电营销云平台AppsFlyer27日在北京发布的《2026游戏App营销现状报告》显示， 2025年中 ...

Core Viewpoint - The government of Chengmai County aims to achieve its investment and development goals by 2026, focusing on effective investment expansion and key projects [1] Group 1: Investment Goals - Chengmai's investment target for the year is set at 8%, with a commitment to initiate no less than 200 new projects and complete investments of at least 20 billion yuan [1] - Key projects such as the county hospital's old town branch, the national fitness center, and the high school section of Chengmai Middle School will commence construction [1] Group 2: Five Major Initiatives - The first "5" focuses on five major battles, including revitalizing the old town technology new city, rural industrial revitalization, and attracting investment, with a goal to achieve a strong start in the first quarter [1] - The second "5" emphasizes strengthening five leading industries, aiming for stable growth in the core digital economy industry to reach a scale of 100 billion yuan, while the oil service industry targets revenue growth to 20 billion yuan [1] - The third "5" involves deepening five major overseas business avenues, expanding the scale of businesses like gaming and cross-border e-commerce, with a goal of surpassing 20 million registered overseas users and achieving total gaming revenue of over 4.5 billion yuan [1]

Core Viewpoint - The Shijingshan District aims to upgrade its development strategy during the "15th Five-Year Plan" period, focusing on transforming planning into reality and enhancing integration among industries, particularly in information technology and modern finance, while fostering emerging sectors like artificial intelligence and science fiction [1][2]. Group 1: Development Strategy - The core logic of development will evolve from "breaking old to establish new" to "from planning to reality and from aggregation to integration" [2]. - The goal for the "15th Five-Year Plan" is to upgrade from "physical space aggregation" to "industrial cluster ecology," creating a complete ecological chain for artificial intelligence [2][3]. - Investment of 3.8 billion yuan will be allocated for 28 key projects to enhance connectivity and integrate ecological, cultural, and industrial functions [3]. Group 2: Industry Focus - Information technology and modern finance are the district's primary industries, with a shift from "scale expansion" to "capability enhancement" planned for the "15th Five-Year Plan" [4]. - Strategies include strengthening the foundation of the information technology sector and fostering innovation in the modern finance sector through the establishment of an insurance innovation demonstration zone and a digital RMB pilot area [4]. Group 3: Emerging Industries - The district will cultivate emerging sectors like artificial intelligence and science fiction, aiming to create a diverse innovation matrix [5]. - Key initiatives include establishing the "Beijing Future Digital Space Innovation Experimental Zone" and promoting technology commercialization [5][6]. Group 4: Urban Development Projects - The "Two Parks and One River" initiative will transition from planning to execution, with projects like the revitalization of the Shilu Canal and the creation of large-scale art installations along the Yongding River [7][8]. - The district plans to enhance the waterfront area with new commercial facilities and recreational spaces, promoting a vibrant urban environment [8]. Group 5: Sports and Cultural Integration - The district aims to leverage its status as a "Double Olympic Zone" to convert sports events into economic and urban development opportunities [9][10]. - Future plans include hosting various sports and cultural events to drive tourism and local consumption, enhancing the overall value chain of events [9][10]. Group 6: Historical and Cultural Preservation - The district emphasizes the importance of preserving its industrial heritage while transforming into a modern urban area, with initiatives to protect historical sites like the Modekou Cultural Heritage District [11].

Core Insights - The National Press and Publication Administration announced the approval of 182 game licenses in January 2026, including 177 domestic and 5 imported games, maintaining a relatively high issuance level [1] - In 2025, a total of 1,771 game licenses were issued, significantly surpassing the 1,416 licenses in 2024, marking the highest issuance since 2019 [1] - Major companies such as Tencent, NetEase, and others received approvals for key products, including Tencent's "Rainbow Six: Siege" and NetEase's "Yao Yao Chess" [1] Group 1 - The January 2026 approvals included significant titles from major gaming companies, indicating a robust market for both domestic and imported games [1] - Tencent's "Rainbow Six: Siege" is a tactical shooter developed by Ubisoft and is part of Tencent's strategy to enhance its gaming portfolio through partnerships [2][4] - The approval of "Angry Birds: Classic Return" and "Angry Birds: Dream Blast" by Kingsoft's subsidiary marks a strategic partnership aimed at reintroducing the franchise to the Chinese market [4] Group 2 - Tencent's investment of €1.16 billion in Ubisoft's subsidiary Vantage Studios grants it a 26.32% stake, integrating key IPs like "Assassin's Creed" and "Rainbow Six," which helps alleviate Ubisoft's financial pressure [4] - The "Rainbow Six: Siege" team is focused on creating a fair competitive environment and enhancing local services for the Chinese market, indicating a commitment to localization and community engagement [4] - Kingsoft's strategic partnership with Rovio aims to facilitate the exclusive distribution and operation of the "Angry Birds" series in China, highlighting the importance of collaboration in the gaming industry [4]

Investment Rating - The report maintains an "Outperform" rating for the media industry, indicating an expected increase of over 10% relative to the CSI 300 index in the next six months [1][37]. Core Insights - The report highlights a decrease in the allocation of public funds to media sector heavyweights, with a total market value of 40.569 billion yuan at the end of Q4 2025, down 31.70% from Q3 2025 [6][10]. - The gaming sector continues to see increased allocation, with a market value of 30.206 billion yuan, representing 74.46% of the total media sector allocation, marking a 1.14 percentage point increase [11][15]. - The report notes a concentration of investments in top gaming companies, with eight out of the top ten heavyweights being gaming firms, reflecting a strong institutional focus on this segment [20][21]. Summary by Sections Heavyweight Stock Allocation - The allocation of public funds to media heavyweight stocks has decreased, with a total market value of 40.569 billion yuan, down 18.825 billion yuan from Q3 2025, resulting in a 31.70% decline [6][10]. - The allocation ratio for media heavyweights is approximately 1.22%, down 0.56 percentage points from the previous quarter [10][11]. Gaming Sector Performance - The gaming sector's market value stands at 30.206 billion yuan, accounting for 74.46% of the total media sector allocation, with a 40.09% overweight ratio, the highest recorded [11][15]. - The top three sectors by market value are gaming, advertising, and film exhibition, with gaming showing the most significant allocation increase [11][15]. Individual Company Insights - The top ten media heavyweights include companies like Giant Network, Century Huatong, and Kaineng Network, with gaming companies dominating the list [20][23]. - Notable changes in the top ten include Mango Super Media dropping out and Kunlun Wanwei entering the list [20][21]. Hong Kong Stock Preferences - In the Hong Kong market, Tencent Holdings remains the largest heavyweight with a market value of 94.525 billion yuan, despite a decrease of 12.287 billion yuan [33][34]. - Meituan and Damai Entertainment have shown significant increases in both market value and the number of funds holding their stocks [33][34]. Investment Recommendations - The report suggests focusing on high-growth segments such as AI applications and gaming, which are expected to benefit from favorable policies and strong market demand [35][36]. - Recommended companies for investment include 37 Interactive Entertainment, Perfect World, Kaineng Network, and others [35][36].

Investment Rating - The report maintains an "Outperform" rating for the media industry, indicating an expected increase of over 10% relative to the CSI 300 index in the next six months [1][37]. Core Insights - The report highlights a decrease in the allocation of public funds to media sector heavyweights, with a total market value of 40.569 billion yuan at the end of Q4 2025, down 31.70% from Q3 2025 [6][10]. - The gaming sector continues to see increased allocation, with a market value of 30.206 billion yuan, representing 74.46% of the total media sector allocation, marking a 1.14 percentage point increase [11][15]. - The report notes a concentration of investment in top gaming companies, with eight out of the top ten heavyweights being gaming firms, reflecting a high level of institutional interest [20][21]. Summary by Sections Heavyweight Stock Allocation - The allocation of public funds to media heavyweights has decreased, with a total market value of 40.569 billion yuan, down 188.25 billion yuan from Q3 2025, resulting in a 31.70% decline [6][10]. - The allocation ratio for the media sector is approximately 1.22%, down 0.56 percentage points from the previous quarter [10][11]. Gaming Sector Performance - The gaming sector's market value is 30.206 billion yuan, accounting for 74.46% of the total media allocation, with a 40.09% over-allocation ratio, the highest recorded [11][15]. - The top three heavyweights in the media sector are gaming, advertising, and film exhibition, with the gaming sector showing the most significant over-allocation [11][15]. Individual Company Focus - The top ten heavyweights in the media sector include major gaming companies such as Giant Network, Century Huatong, and Kaineng Network, with a notable shift in rankings from Q3 2025 [20][23]. - The report indicates a divergence in individual stock allocations, with some previously high-performing companies seeing reduced allocations, possibly due to profit-taking [35][36]. Investment Recommendations - The report suggests focusing on high-growth segments such as AI applications and gaming, which are expected to benefit from favorable policies and upcoming product launches in 2026 [35][36]. - Recommended companies for investment include 37 Interactive Entertainment, Perfect World, Kaineng Network, and others [35][36].