Market Overview - The A-share market saw all three major indices rise last Friday, with the Shanghai Composite Index up by 0.71%, the Shenzhen Component Index up by 2.02%, and the ChiNext Index up by 3.57%. The total trading volume in the Shanghai and Shenzhen markets reached 19,740.21 billion [1][7] - In terms of industry performance, the telecommunications, electronics, and defense sectors led the gains, while the oil, coal, and food and beverage sectors lagged behind. Concept sectors such as storage chips and state-owned enterprise reforms saw significant increases, while coal and rental rights concepts experienced declines [1][7] - The Hong Kong market also saw the Hang Seng Index rise by 0.74%, while the Hang Seng Technology Index remained unchanged. In overseas markets, all three major US indices rose, with the Dow Jones up by 1.01%, the S&P 500 up by 0.79%, and the Nasdaq up by 1.15% [1][7] Important News - Recent US-China trade talks took place in Kuala Lumpur, focusing on key economic issues such as maritime logistics, tariff extensions, and agricultural trade. Both sides reached a basic consensus on addressing mutual concerns and agreed to further define specific details [2][8] - The Ministry of Science and Technology emphasized the importance of strengthening strategic planning and innovation to seize opportunities in the new technological revolution and industrial transformation [2][8] Industry Insights - The recent Fourth Plenary Session of the 20th Central Committee outlined a blueprint for future economic development, emphasizing high-quality growth and structural reforms during the 14th Five-Year Plan period. The focus will be on developing new productive forces to drive economic transformation [9][10] - The session highlighted the need to build a modern industrial system, with advanced manufacturing as a backbone, and to accelerate the transition of traditional industries towards high-end, intelligent, and green development [10][11] - There is a strong emphasis on enhancing domestic demand and consumption to strengthen the domestic economic cycle, with plans to cultivate a complete domestic demand system [12] - The session also called for market-oriented reforms to improve resource allocation efficiency and expand high-level openness, aiming to break down barriers to the construction of a unified national market [12] Gaming Industry Update - In October, a total of 166 game licenses were approved, including 159 domestic games and 7 imported games. This high volume of approvals indicates a continued recovery in the gaming industry [13][14] - Notable games such as "Arknights" by Eagle Horn Network have been approved, which is expected to strengthen its position in the market. The game has seen significant success since its launch, with high download rates and positive reviews [14][15] - The overall trend in game license approvals suggests a normalization in the regulatory environment, which is expected to benefit leading companies with diverse product offerings and strong R&D capabilities [15]

Investment Rating - The industry investment rating is "Outperform the Market," indicating an expected relative increase of over 10% in the industry index compared to the broader market over the next six months [4][7]. Core Insights - The approval volume of game licenses in October remains high, with a total of 159 domestic games and 7 imported games approved, contributing to a total of 1,354 domestic games approved year-to-date [2]. - The launch of the client version of "Arknights" by Eagle Dynamics is expected to strengthen its leading position in the two-dimensional tower defense genre, having generated nearly 600 million yuan in revenue in its first month and achieving a download count of 30.92 million [2]. - The overall supply side continues to release, with a normalization trend in license issuance, indicating a sustained recovery in the industry [3]. Summary by Sections Game License Approval - In October, 159 domestic games and 7 imported games received approval, maintaining a high issuance volume [2]. - Year-to-date, 1,354 domestic games and 87 imported games have been approved [2]. Market Performance - The client version of "Arknights" has achieved significant market success, ranking in the top 15 of the iOS bestsellers shortly after launch and maintaining a high rating on platforms like TapTap and App Store [2]. - The game is noted for its unique art style and rich narrative, contributing to its popularity and extensive fan engagement [2]. Investment Recommendations - The report suggests focusing on leading companies with product reserves, R&D capabilities, and diverse thematic layouts, as the industry continues to recover and expand [3].

Group 1: Market Overview - The overall market showed a slight recovery with major indices closing up, including the Shanghai Composite Index rising by 0.22% to 3922.41 points and the CSI 300 Index increasing by 0.30% to 4606.34 points [7][10] - The performance varied across different market segments, with large-cap stocks leading while small-cap stocks lagged behind [8][10] - The trading volume in the market was approximately 16607.09 billion, reflecting a decrease of 295.48 billion compared to the previous trading day [7] Group 2: Industry Dynamics - In October 2025, the National Press and Publication Administration approved 159 domestic video game licenses, marking a year-on-year increase of 46 licenses [24][25] - The National Energy Administration reported that the total electricity consumption in September 2025 reached 8886 billion kWh, a year-on-year growth of 4.5% [26][27] - The production of industrial feed in September 2025 was 30.36 million tons, showing a year-on-year increase of 5.0% [28][29] Group 3: Company Updates - Juhua Co., Ltd. reported a total revenue of 20.394 billion with a year-on-year growth of 13.89% for the first three quarters of 2025, and a net profit of 3.248 billion, up 160.22% year-on-year [30][31] - Lihua Technology's revenue for the first three quarters of 2025 was 558 million, with a net profit growth of 2.18% year-on-year [32][33] - Hunan's electric vehicle exports reached 8.62 billion in the first three quarters of 2025, a significant increase of 85.9% year-on-year [34][35]