Core Insights - The resurgence of "New Chinese Horror" in popular culture is driven by quality works in gaming and comics, alongside local low-budget horror films exploring folklore, urban legends, and social issues [1][2] - The success of films like "Yuan Yang Lou: Horror" demonstrates the potential for local horror films to resonate with audiences through updated narratives and social themes [2][5] - The marketing strategies for local horror films have evolved to emphasize social experiences and engagement, leveraging social media and event-based promotions [4][5] Group 1: Market Trends - From 2024 to 2025, local horror films are expected to achieve several commercial breakthroughs in box office performance [2] - "Yuan Yang Lou: Horror" has become a benchmark for small-budget films, achieving significant box office success and positive reception [2] - The audience demographic for "Yuan Yang Lou: Horror" shows a notable shift, with nearly 70% female viewers and almost 60% under 25 years old [2] Group 2: Narrative and Content Development - The narrative evolution in local horror films combines traditional horror elements with contemporary social issues, such as female empowerment and workplace anxiety [5][14] - The use of confined settings in horror films enhances the immersive experience, allowing for a more focused and intense atmosphere [5][14] - Despite some advancements, local horror films still face challenges with narrative fatigue and structural limitations, often relying on familiar tropes [14][18] Group 3: Industry Comparisons - Blumhouse Productions and A24 serve as models for local filmmakers, showcasing different approaches to horror film production—Blumhouse focuses on low-budget efficiency while A24 emphasizes artistic expression [6][10] - Blumhouse's success is attributed to its ability to create impactful narratives within budget constraints, while A24's films often explore deeper psychological themes [8][10] - Both companies highlight the importance of brand identity, cost management, and audience trust in the horror genre [10][12] Group 4: Future Opportunities - The integration of folklore and social themes presents a clear direction for local horror films, potentially leading to a new wave of creative opportunities [1][14] - Streaming platforms like Netflix are expanding their horror content, indicating a growing market for diverse horror narratives and sub-genres [12][13] - The local horror film industry must address structural issues and seek to establish stable IP chains to build a loyal audience base [18][19]

Investment Rating - The report maintains a "Buy" rating for the media industry, indicating a positive outlook for the sector [6][34]. Core Insights - The media industry saw a slight increase of 0.16% in the week from November 1 to November 7, 2025, ranking 18th among various industries. Notable performers included China Film, Jishi Media, and Chinese Media, with Baidu Group-SW and NetEase-S showing strong weekly gains in the Hang Seng Technology Index [10][16]. - The report emphasizes the potential in AI applications and cultural exports, particularly focusing on sub-sectors such as gaming, IP, short dramas, and publishing [4][34]. Summary by Sections Market Performance - The media industry experienced a weekly increase of 0.16%, while the Shanghai Composite Index rose by 1.08% and the Shenzhen Component Index by 0.19%. The gaming sector saw a decline of 0.29%, while the film and television sector increased by 2.49% [10][12]. Key Industry Data - **AI Applications**: In October, the top five AI applications globally were ChatGPT, Doubao, Quark, Baidu Cloud, and Gemini. Doubao led domestic applications with a monthly active user (MAU) count of 159.41 million, reflecting a 6.28% month-over-month growth [20][21]. - **Gaming**: The iOS gaming sales chart for November 6, 2025, was topped by "Honkai: Star Rail," followed by "Honor of Kings" and "Delta Force." The report also noted the upcoming release of seven new games between November 13 and November 15 [23][25]. - **Film**: The total box office for the week was 207 million yuan, with "Improv Murder" leading at 42.11 million yuan, accounting for 20.3% of the weekly total. Upcoming films include "Demon Slayer: Infinity Castle Chapter" and "Now You See Me 3" [27][28][31]. Investment Recommendations - The report suggests focusing on themes such as AI applications and cultural exports, with specific attention to companies like Giant Network, Kaiying Network, and Perfect World among others [4][34].

Investment Rating - The report maintains an "Outperform the Market" rating for the media sector [4][36][40] Core Views - The media sector has shown a slight increase of 0.48% this week, underperforming both the CSI 300 index (0.75%) and the ChiNext index (4.09%) [11][12] - The game "Escape from Duckkov" has surpassed 2 million sales as of October 28, 2025, indicating strong market interest [15][36] - OpenAI is preparing for an IPO expected in the second half of 2026, with a potential valuation reaching 12 digits [16][36] Summary by Sections Industry Performance - The media sector's performance this week ranked 18th among all sectors, with notable gainers including BlueFocus, Yue Media, and Fushi Holdings, while losers included Giant Network and ST Huatuo [11][12][13] Key Data Tracking - The box office for the week (October 27 - November 2) reached 213 million yuan, with the top three films being "Life of Langlang" (37 million yuan, 17.5% share), "Improv Murder" (35 million yuan, 16.1% share), and "Eagle Warrior: Last Strike" (29 million yuan, 13.6% share) [17][19] - In the gaming sector, the top three mobile games in September 2025 were "Whiteout Survival" and "Kingshot" by Didi Interactive, and "Gossip Harbor: Merge & Story" by Lemon Microfun [24][26] Investment Recommendations - The report suggests a continued positive outlook on the gaming sector, particularly focusing on new product cycles and IP trends, recommending stocks such as Giant Network, Kaiying Network, and Jibite [3][36] - It also highlights the potential for growth in AI applications across various sectors, including animation, advertising, and education [3][36] Company Earnings Forecasts - Key companies such as Kaiying Network, Fenjun Media, and Mango Super Media are rated as "Outperform the Market," with projected earnings per share (EPS) for 2025E being 1.01, 0.39, and 0.76 respectively [4][38]

Group 1 - The total box office for the first seven days of the 2025 National Day holiday is 1.73 billion yuan, a decrease of 17.8% compared to the same period last year, and the total box office for the entire holiday period is expected to be below 2.8 billion yuan under neutral conditions [1][2] - The film "The Volunteers: Blood and Peace" has a cumulative box office of over 400 million yuan, ranking first, while no single film has exceeded 500 million yuan this year, indicating a lack of blockbuster films [1][2] - The average ticket price is 36.7 yuan, down 9.1% year-on-year, and the number of moviegoers is 47.12 million, down 9.6% compared to last year [1] Group 2 - The box office performance of films during the holiday period is relatively balanced, with "The Volunteers: Blood and Peace" accounting for 24.8% of the total box office, followed by "731" and "Assassination Novelist 2" with 19.2% and 16.2% respectively [2] - The market share of the top ten film investment companies is 33.1%, showing a slight year-on-year decline, indicating a relatively stable competitive landscape in cinemas [2] Group 3 - The supply of quality content is crucial for boosting audience demand, with upcoming domestic films such as "Impromptu Murder" and "The Unnamed: Meaningful" and imported films like "Avatar: The Way of Water" expected to be released [3] - Continuous monitoring of the box office performance of upcoming films, especially key imported films at the end of the year, is recommended [3] Group 4 - Companies to watch include offline entertainment platform Damai Entertainment (01060), Maoyan Entertainment (01896), and content IP company Shanghai Film (601595.SH) [4]