Core Insights - The company reported significant growth in Q3 2025, with revenue reaching 76.85 billion yuan, a year-on-year increase of 5% and a quarter-on-quarter increase of 5% [1] - The net profit attributable to shareholders was 4.70 billion yuan, marking a turnaround from loss to profit, with a quarter-on-quarter increase of 115% [1] - Adjusted net profit surged by 233% year-on-year and 40% quarter-on-quarter, reaching 7.86 billion yuan [1] Revenue Breakdown - Value-added services revenue was 30.23 billion yuan, up 7% year-on-year and quarter-on-quarter, driven by an increase in paid memberships [2] - Advertising revenue reached 25.70 billion yuan, a 23% year-on-year increase and a 5% quarter-on-quarter increase, attributed to improved ad product supply and effectiveness [2] - Mobile game revenue was 15.11 billion yuan, down 17% year-on-year and 6% quarter-on-quarter, primarily due to high promotional costs during the initial launch of "Three Kingdoms: Strategy" [2] - IP derivatives and other revenue amounted to 5.82 billion yuan, reflecting a 3% year-on-year increase and a 32% quarter-on-quarter increase [2] Profitability and Cost Management - Gross margin improved for the 13th consecutive quarter, reaching 36.7%, an increase of 1.8 percentage points year-on-year and 0.2 percentage points quarter-on-quarter [2] - Total sales, management, and R&D expense ratio was 32.1%, down 3.7 percentage points year-on-year and 1.0 percentage point quarter-on-quarter, indicating sustained operational leverage [2] Future Outlook - The company is optimistic about the commercialization of its platform and the continued growth driven by gaming, projecting net profits of 10.24 billion yuan, 20.86 billion yuan, and 28.50 billion yuan for 2025-2027 [2] - The current stock price corresponds to P/E ratios of 78.5, 38.5, and 28.2 for the respective years [2] User Engagement and Community Growth - The platform's user data reached new highs in Q3, with daily active users (DAU) at 117 million (up 10% year-on-year) and monthly active users (MAU) at 376 million (up 8% year-on-year) [3] - The DAU/MAU ratio increased to 31%, with average daily usage time reaching 112 minutes (up 6 minutes year-on-year) [3] - The average income per content creator (UP master) increased by 22% year-on-year, indicating a healthy community development [3] Content Performance - Popular content such as "The Legend of Mortal Cultivation" and "Guarding the Liberation West" series achieved significant viewership, enhancing user willingness to pay [3] - Monthly paying users exceeded 35 million (up 17% year-on-year), with premium membership numbers reaching 25.4 million (up 16% year-on-year) [3]

Core Insights - Bilibili announced a plan for 40 domestic animation projects during its 2025-2026 national animation release conference, highlighting a focus on diverse and high-quality content [1] New Projects - Bilibili will collaborate with Shenman Culture for the first time to adapt the popular web novel "I Clean Up Garbage in the Wasteland" into an animation [3] - Classic IP adaptations such as "The Legend of Sword and Fairy 4" and "Difficult to Please" have released new trailers [3] - The TV animation "The Legend of Luo Xiaohei" will return after a four-year hiatus, launching a new chapter titled "Preschool Chapter" [3] IP Sequels - The new season of the annual series "A Mortal's Journey to Immortality" is set to air in the first half of 2026, with a related film "The Mystery of the Vast Sea" and a side story "The Legend of Xuan Gu" also in production [3] - The ongoing series "The Shepherd's Record" will introduce new characters [3] - The third season of "Time Agent" is scheduled to launch in October 2026 [3] - The highly acclaimed animation "Chinese Folktales 2" is set to premiere on January 1, 2026 [3] Content Strategy - Bilibili is increasingly focused on exploring diverse and high-quality animation content, providing more space for innovative themes and stylistic works alongside established IP sequels [3] - The new project "Cleaning Garbage" is the first domestic "romantic wasteland" themed work, featuring imaginative visual aesthetics that differ from traditional wasteland styles [3] - The animation will showcase unique creatures and the integration of plants with urban architecture, reflecting a blend of technology and humanity in character design [3] Market Trends - "Difficult to Please" is one of the few 2D urban romance stories in the animation market, with the original voice cast from the Bilibili Cat Ear FM radio drama returning for the animation [4] - The radio drama has gained widespread recognition, with over 140 million plays on Cat Ear FM [4] - Popular and stylistically unique animations like "Chinese Folktales 2" and "The Legend of Luo Xiaohei" continue to expand their content offerings [4]

Investment Rating - The report maintains a "Buy" rating for Bilibili-W (09626) [2] Core Insights - Bilibili achieved a revenue of 7.69 billion yuan in Q3 2025, representing a year-on-year growth of 5%, which met expectations; the adjusted net profit attributable to shareholders was 790 million yuan, exceeding Bloomberg consensus by 22%, with a profit margin of 10.2%, continuing to improve quarter-on-quarter [5] - User engagement metrics reached historical highs, with MAU growing 8% year-on-year to 376 million and DAU increasing 9% to 117 million, indicating strong user stickiness [8] - Advertising revenue accelerated with a year-on-year growth rate of 23%, while game revenue declined by 17%, aligning with expectations due to a high base effect [8] - The company continues to optimize operational efficiency, with a gross margin of 36.7% and a 6% year-on-year reduction in absolute values of operating expenses [8] - The report highlights two upward potential drivers: community monetization through gaming and AI applications, which could enhance content ecosystem and advertising efficiency [8] Financial Data and Profit Forecast - Revenue projections for Bilibili are as follows: - 2023: 22.53 billion yuan - 2024: 26.83 billion yuan - 2025E: 30.21 billion yuan - 2026E: 33.30 billion yuan - 2027E: 36.16 billion yuan - Adjusted net profit forecasts are: - 2023: -3.43 billion yuan - 2024: -0.02 billion yuan - 2025E: 2.57 billion yuan - 2026E: 3.02 billion yuan - 2027E: 4.05 billion yuan [7][9]

Core Insights - Bilibili (referred to as "B站") reported a total revenue of 7.69 billion yuan for Q3 2025, representing a year-on-year growth of 5% [1] - The platform's daily active users reached 117 million, up 9% year-on-year, while monthly active users increased to 376 million, a growth of 8% [1] - The average daily usage time per user rose to 112 minutes, an increase of 6 minutes compared to the previous year [1] User Engagement - Content consumption in gaming, AI, and knowledge areas continued to grow, with gaming content viewing time increasing by 22% year-on-year and AI content viewing time nearly doubling with a growth of 50% [1] - The viewing time for automotive content grew by 20%, and travel content saw an 18% increase [1] - Domestic original content viewing time surged by 104%, with the series "凡人修仙传" achieving over 180 million views per episode, setting a historical record [1] - The number of "UP主" (content creators) with over 10,000 followers increased by over 20% year-on-year, and nearly 2.5 million "UP主" earned income through various channels, with average income per creator rising by 22% [1] Financial Performance - Bilibili's revenue from value-added services, advertising, gaming, and IP derivatives contributed 39%, 33%, 20%, and 8% respectively to total revenue [2] - Adjusted net profit for Q3 increased by 233% year-on-year, reaching 790 million yuan [2] - Advertising revenue accelerated to 2.57 billion yuan, a year-on-year growth of 23%, while gaming revenue stood at 1.51 billion yuan, supported by long-term operations of games like "Fate/Grand Order" and "Azur Lane" [2] - Revenue from value-added services reached 3.02 billion yuan, reflecting a 7% year-on-year increase [2]

Investment Rating - The report maintains a "Recommended" investment rating for the media industry [4]. Core Insights - The media sector combines technology application and discretionary consumption, with a high proportion of "expectation" factors influencing valuations. The third quarter of 2025 saw an increase in EPS, leading to a shift towards PE-driven phases. The upcoming "14th Five-Year Plan" completion and the initiation of the "15th Five-Year Plan" are expected to drive new growth through state-owned enterprise reforms and technological advancements [3][14]. - The report highlights three key dimensions for investment focus: state-owned enterprise reform, the cinema sector in Q4 2025, and the new cycle of AI applications driving media sector valuations [3][14]. Summary by Sections 1. Industry Review - The media sector's performance from October 27 to October 31, 2025, showed varied results, with the Shanghai Composite Index and Shenzhen Component Index experiencing slight increases. The media sub-sectors had notable fluctuations, with BlueFocus and other companies showing significant gains [13][19]. 2. Key Company Recommendations - The report recommends several companies within the media sector, including: - Oriental Pearl (600637): Improved cash flow and AI-driven development [4]. - BlueFocus (300058): AI-driven revenue target of 3.47 billion to 4.7 billion for the year [4]. - Mango Excellent Media (300413): Recovery in advertising revenue [4]. - Wanda Film (002739): Focus on industry competition [4]. - Other notable mentions include CITIC Publishing (300788), Huace Film & TV (300133), and Shanghai Film (601595) [4]. 3. Financial Performance - The report indicates that the total net profit for the A-share media sector in Q3 2025 reached 10.079 billion, a 48% year-on-year increase, driven by low base effects and new product launches [14]. 4. AI and Technology Integration - The report emphasizes the ongoing exploration of AI's potential in the media sector, with companies leveraging AI for content creation and operational efficiency. The integration of AI is expected to enhance revenue generation and valuation in the media industry [15][16]. 5. Market Dynamics - The report notes that the film market is experiencing a resurgence, with significant box office revenues and a growing number of films being produced and released. The micro-drama sector is also expanding rapidly, indicating a shift in consumer demand towards shorter, more engaging content [29][30]. 6. E-commerce Trends - E-commerce platforms are adapting to consumer preferences, with innovations in product offerings and service models. The report highlights the competitive landscape among major players like Alibaba, JD, and Pinduoduo, particularly during promotional events like Double 11 [24][25]. 7. Future Outlook - The report anticipates that the media sector will continue to benefit from technological advancements and policy support, particularly in the context of the "15th Five-Year Plan" aimed at cultural and technological integration [16]. 8. Company Performance Forecasts - The report provides earnings per share (EPS) and price-to-earnings (PE) forecasts for various companies, indicating a generally positive outlook for the media sector [8].

Core Viewpoint - The resurgence of action scenes in Chinese entertainment is becoming a focal point, with significant developments expected by 2025, as evidenced by the success of films and series that emphasize high-quality action sequences [1][3]. Film Industry - The film "Capturing the Wind" has grossed over ten billion, showcasing a shift in action films that no longer rely solely on traditional tropes [1]. - The film features a younger cast from the post-95 and post-00 generations, indicating a new direction for action films in China [1]. Television Industry - Recent series have focused on enhancing action scenes with improved special effects, costume design, and original soundtracks, leading to a notable increase in audience engagement [3][5]. - Series such as "Dark River" and "Water Dragon Chant" have adopted a more anime-like aesthetic in their action sequences, which has become a key point of discussion among viewers [6][7]. - The current trend in action scenes is driven by the demands of short video promotions and fan expectations, leading to a collaborative effort to elevate the quality of action in long-form dramas [5][8]. Audience Engagement - The audience's preferences for action scenes have become clearer, with a demand for more dynamic and visually engaging sequences rather than the traditional slow-motion effects [9][14]. - The rise of social media has made it easier for audiences to critique and share their opinions on action scenes, influencing the production standards [8][9]. Historical Context - The evolution of action scenes in Chinese dramas has been influenced by the film industry, with earlier styles being replaced by more dynamic and visually appealing techniques [11][12]. - The decline of traditional action films in the 2010s has led to a stagnation in the quality of action scenes in dramas, which are now beginning to draw inspiration from anime and gaming [14][19]. Future Directions - The industry is exploring new ways to innovate action scenes, with a focus on integrating elements from anime and gaming to enhance viewer experience [14][21]. - The effectiveness of action scenes in dramas will depend on their ability to complement the overall narrative and engage the audience emotionally [19][21].

Group 1: Media Sector Performance - In September 2025, the media sector (Shenwan Media Index) rose by 4.96%, outperforming the CSI 300 Index by 1.76 percentage points, ranking 5th among 31 industries [1] - Notable gainers included Giant Network, Mango Excellent Media, ST Huatong, and Happiness Blue Sea, while losers included Youzu Interactive, Jishi Media, Shandong Publishing, and Tom Cat [1] - The current TTM-PE for the Shenwan Media Index is 46.5x, positioned at the 95.9th percentile over the past five years [1] Group 2: Gaming Market Insights - In September, 145 domestic games and 11 imported games were approved, with a total of 1,275 game licenses issued from January to September, marking a year-on-year increase of 23.2% [1] - The Chinese gaming market revenue in August was 29.3 billion yuan, with year-on-year and month-on-month changes of -13.0% and +0.6% respectively; mobile gaming revenue was 21.5 billion yuan, with year-on-year and month-on-month changes of -4.2% and +0.8% [1] - The sector is expected to have medium to long-term upward potential driven by new product cycles, regulatory policy shifts, and AI applications [1] Group 3: National Day Box Office Performance - The total box office for the National Day period was 1.866 billion yuan, a year-on-year decline of 12.8%, primarily due to a lack of compelling new releases [2] - In September 2025, the total box office reached 2.661 billion yuan, reflecting a year-on-year increase of 82.8% [2] Group 4: AI Applications and Technological Advances - Meta's Super Intelligent Lab has overcome RAG technology bottlenecks, innovating a lightweight model to compress lengthy contextual content into concise summaries [3] - Google introduced the "Inference Memory" framework, enabling AI agents to achieve "self-evolution" [3] - OpenAI launched Sora2, which supports the generation of high-quality video and audio, while Kuaishou released Kegong 2.5 Turbo, reducing video generation costs by 30% [3]

Core Insights - The series "赴山海" has become a new flow password in the internet space, marking a significant event in the drama market for the second half of 2025 [1] - Despite high initial viewership and popularity, the series has faced criticism regarding its quality, leading to a complex evaluation of the lead actor 成毅's ability to carry a show [3][12] - The phenomenon of "black-red" (negative publicity leading to increased attention) has emerged, indicating that the series' flaws have generated significant online discussion, overshadowing its actual quality [9][11] Group 1: Series Performance and Reception - "赴山海" achieved over 700 million views within 10 days of its release, topping the drama popularity charts for 10 consecutive days [1] - The lead actor 成毅's character has garnered over 200 million views on iQIYI, showcasing his significant role in driving the series' initial success [1] - However, the series has been criticized for its production quality, with common complaints about the plot, pacing, and technical errors, leading to a decline in audience reception [6][11] Group 2: Actor's Market Position and Future Projects - 成毅 is set to star in the upcoming series "两京十五日," indicating that despite the current setback, he continues to secure high-profile projects [3] - The market's perception of an actor's ability to carry a show has become increasingly complex, with traditional metrics of success being challenged [3][18] - The concept of "single-person approval" has emerged, where top actors can secure projects based on their individual influence, reflecting a shift in how projects are evaluated in the industry [20][22] Group 3: Industry Trends and Actor Dynamics - The dual nature of flow (popularity) and its backlash has created a cycle where actors can quickly rise and fall based on a single project's reception [11][12] - The industry is witnessing a trend where both flow actors and established talent must continuously prove their worth, as the market allows for limited mistakes [29] - The emergence of a new generation of actors who can balance both popularity and acting skills is reshaping the competitive landscape, with a focus on diverse roles and strong performances [30]

Core Insights - The report by iResearch indicates that Youku's user growth in the first half of 2025 significantly outpaced the overall long video industry, achieving an 8-fold increase compared to the industry's growth rate, driven by popular dramas like "The Hidden Sea" and "In the Name of Law" [1][2] Group 1: User Growth and Content Strategy - Youku's user base grew from 270 million to 280 million, marking a 6% increase, while the overall long video sector saw only a 0.7% growth [1] - The growth is attributed to a diverse content strategy that includes genres such as historical, suspense, and urban dramas, aiming to cater to various audience preferences [1][2] Group 2: Impact of Quality Content - High-quality dramas like "The Hidden Sea" have a broad appeal, reaching audiences beyond just fan bases, thus becoming significant commercial successes [2] - Youku dominated the summer viewing season, securing the top two spots in total views across platforms, with "The Hidden Sea" and "In the Name of Law" each surpassing 1.3 billion views and achieving over 40% market share [2] Group 3: Competitive Landscape - The long video industry is entering a low-growth phase, making the impact of premium content increasingly vital for user engagement and retention [2] - Youku's strategy of increasing its self-produced content has transitioned from exploration to refinement, with a high exclusivity rate of 87.5% for its original content from January to July 2025, the highest among major long video platforms [2]

Core Viewpoint - Recent mainland Chinese dramas have gained popularity in Taiwan, showcasing various elements of Chinese culture that resonate well with local audiences [1][2]. Group 1: Popularity of Mainland Dramas - Several mainland dramas, such as "Longan's Lychee" and "Jin Yue Ru Ge," have become hits in Taiwan, with viewers praising the depiction of Chinese cultural elements [1][2]. - The rise of these dramas has led to significant engagement on social media platforms, with dedicated groups for discussing mainland dramas amassing tens of thousands of members [2]. Group 2: Cultural Elements and Audience Engagement - The intricate portrayal of traditional Chinese culture, including costumes, food, and rituals, has captivated Taiwanese viewers, leading to a deeper appreciation of cultural heritage [2]. - Taiwanese audiences are increasingly seeking recommendations for mainland dramas and engaging in discussions about plot developments and character stories on social media [2]. Group 3: Broader Cultural Impact - The success of mainland dramas is part of a larger trend, with Chinese-themed games and films also gaining traction in Taiwan, indicating a growing interest in Chinese culture [3]. - Cultural exchanges, such as the rise of "Guochao" culture in Taiwan, are seen as a bridge for deeper understanding between the two sides, countering political narratives that promote "de-Sinicization" [5].