Group 1 - The core factors influencing the financial performance and valuation of Chinese internet-listed companies in the next 6 to 12 months include artificial intelligence, macro environment, competitive landscape, regulatory policies, shareholder return execution, and Sino-U.S. relations [1] - In the current volatile market environment, a relatively defensive asset allocation strategy is recommended, with a priority ranking for short-term investments as follows: Tencent Holdings (00700) > NetEase-S (09999) > JOYY (JOYY.US) > Tencent Music-SW (01698) [1] - Bilibili-W (09626) is also recommended due to its potential significant revenue and earnings upside from the game "Three Kingdoms: Ncard," expected to launch its first paid test on October 23, 2025, and officially release during the Lunar New Year in 2026 [1] Group 2 - Tencent is expected to report robust third-quarter results, with total revenue projected to grow by 14% year-on-year, driven by strong gaming and online advertising businesses, and adjusted operating profit reaching 73 billion RMB, a 20% increase [2] - The company is strengthening its core capabilities through focused and efficient operational execution, integrating artificial intelligence into its WeChat ecosystem, effectively addressing macro and systemic headwinds [2] - Alibaba's firm AI strategy is noted, with attention on the dynamics of its core e-commerce business during the Double Eleven shopping festival, as the cloud business is expected to accelerate growth in the quarter ending September [2]

Investment Rating - The report maintains a positive outlook on the A-share and Hong Kong stock market for quality media companies, indicating a "Look Favorably" investment rating for the industry [2]. Core Insights - The report emphasizes the sustainability of the current market trend for quality media companies, driven by global resonance in AI application commercialization and the self-consumption trends of Generation Z [2]. - It highlights the global competitive strength of sectors such as gaming, trendy toys, and AI tools, along with differentiated competition based on category and tone [2]. - The report identifies specific opportunities within the AI application chain, particularly in areas like AI advertising, education, and productivity tools, which are expected to see accelerated commercialization [2]. Summary by Sections AI Application - The report notes that the globalization and commercialization of AI applications are progressing rapidly, with significant potential in AI advertising, education, programming, and enterprise-level AI [2]. - Specific companies like Meitu and Kuaishou are highlighted for their strong growth potential in AI applications, with Meitu being noted for its unique global positioning and Kuaishou for exceeding commercialization expectations [2]. Gaming Sector - The gaming sector is experiencing short-term volatility; however, the fundamentals of key companies remain strong. New product launches are expected to stabilize performance [2]. - Companies like Giant Network and G-bits are mentioned for their upcoming releases and strong market positions [2]. Cloud Computing - AI is driving a recovery in cloud computing revenue growth, with a focus on internet cloud computing firms that have clear advantages in their own scenarios [2]. - Alibaba is specifically mentioned for its cloud computing direction, which is expected to continue to deliver value [2]. Consumer Trends - The report continues to recommend consumer brands like Pop Mart and NetEase Cloud Music, which are expected to benefit from market expansion and increasing paid user growth [2]. Valuation Table - A detailed valuation table is provided, showing the market capitalization, revenue, and profit forecasts for key companies in the gaming, film, and entertainment sectors, indicating growth rates and PE ratios for 2025 and 2026 [4].

Group 1: JD Logistics - The company is expected to meet its Q2 performance expectations, with revenue continuing to show double-digit growth and profit increasing in the single digits year-on-year [1] - JD Logistics will provide full-time delivery services for the group's food delivery segment, settling at cost price, which will have limited short-term profit impact but aims for long-term synergy [1] - The target price is set at HKD 18.50, indicating a potential upside of 40.4% from the closing price of HKD 13.18, maintaining a "Buy" rating [1] Group 2: Bilibili - The focus is on enhancing advertising commercialization efficiency and long-term operation of core game IPs [2] - The company aims to strengthen its infrastructure capabilities, leveraging AI to reconstruct recommendation algorithms and improve advertising efficiency across multiple screens and scenarios [2] - The gaming segment is concentrating on long-term operations of core IPs, with new game launches expected to target niche markets and younger demographics [2] Group 3: Battery Industry - In the first half of 2025, China's power battery production and sales were robust, with a total installed capacity of 299.6 GWh, representing a year-on-year increase of 47.3% [4] - Exports of batteries showed a significant year-on-year increase of 56.8%, totaling 127.3 GWh, which accounted for 19.3% of total sales [4] - The overseas market for Chinese battery companies is expanding, with a market share of 43% among the top ten companies, an increase of 7 percentage points year-on-year [5] Group 4: Economic Data - Upcoming economic data releases include the Consumer Price Index (CPI) for June, with expectations of a month-on-month increase of 0.10% and a year-on-year increase of 2.40% [6] - The Industrial Producer Price Index for June is expected to show a year-on-year increase of 0.10% [6] - Retail sales for June are anticipated to decline by 0.90% month-on-month [6]

Investment Rating - The report maintains a "Buy" rating for Bilibili (BILI US) with a target price of $26, representing a potential upside of 21.2% from the current price of $21.46 [6][7]. Core Insights - The report emphasizes Bilibili's focus on enhancing advertising commercialization efficiency and long-term operation of core game IPs. The company aims to expand its advertising ceiling while exploring diversified monetization models primarily targeting C-end users, supplemented by B-end strategies [1]. - Bilibili's advertising strategy involves deepening the value of mid-to-long video content, with a significant increase in advertising revenue from the content consumption and consumer goods sectors, showing a year-on-year growth of 90% and 30% respectively in the first half of the year [1]. - In gaming, Bilibili is concentrating on the long-term operation of core IPs, with successful titles like "Three Kingdoms" achieving record daily active users and maintaining strong revenue contributions from various platforms [1]. Summary by Sections Advertising Strategy - Bilibili is implementing a dual strategy in advertising, focusing on both content quality and market share expansion. The company is leveraging AI to enhance its advertising capabilities, including recommendation systems and intelligent ad placements [1]. - The report highlights that the advertising revenue from the gaming sector is expected to grow as Bilibili assists leading game companies in user retention and marketing budget allocation [1]. Gaming Operations - The report outlines Bilibili's successful game titles, including "Three Kingdoms," which has consistently ranked in the top three of the iOS bestseller list. The company plans to launch new versions and expand its gaming ecosystem [1]. - Upcoming game releases include a new PVE game and expansions for existing titles, indicating a robust pipeline for future growth [1]. Financial Projections - The report projects an adjusted net profit of 2.3 billion RMB for 2025, with expectations for improved gross margins and profit release driven by scale effects and revenue structure optimization [1].