Investment Rating - The report maintains a positive outlook on the SLG gaming sector and continues to recommend leading companies in various sub-sectors of the media and internet industry [2][3]. Core Insights - The report highlights the stable growth of NetEase's gaming business, with a revenue of 22.8 billion yuan in Q2 2025, representing a year-on-year increase of 13.7% [3]. - The SLG gaming segment is expected to see continued expansion in overseas demand, with global market share projected to reach nearly 10% and revenue around 17.5 billion USD in 2024 [2]. - The report emphasizes the importance of high-quality development and dynamic user acquisition strategies for leading companies to maintain their competitive edge in the SLG sector [2]. Industry Overview - The media industry overall saw a 1.25% increase in the past week, ranking 16th among all sectors, with a year-to-date increase of 22.99%, placing it 7th among all sectors [11]. - The gaming sector, particularly the SLG segment, is showing a strong upward trend, supported by the integration of lightweight and diverse gameplay [2]. - The report notes that the top 10 best-selling games on WeChat mini-games in the first half of the year included several with SLG elements, indicating a significant market opportunity [2]. Company Performance - NetEase's gaming segment has launched several successful titles, contributing to its revenue growth, with notable games like "Identity V" and "Marvel Duel" leading the way [3]. - The report mentions that the company has a strong pipeline of upcoming games, including original titles and mobile adaptations, which are expected to further enhance its market position [3]. - The cloud music business of NetEase showed stable performance with a revenue of 2 billion yuan in Q2 2025, while its profitability improved significantly [3]. Market Data - The report provides data on the overall industry scale, indicating a total market capitalization of 1,935.1 billion yuan and a circulating market capitalization of 1,759.0 billion yuan across 160 listed companies [4]. - The report also includes performance metrics for the media sector, with absolute performance over 1 month, 6 months, and 12 months recorded at 5.8%, 8.5%, and 62.4% respectively [6].

Group 1 - The core viewpoint of the articles highlights the positive performance of NetEase-S (09999) in Q1 2025, with significant revenue and profit growth driven by new game launches [1][2] - NetEase reported Q1 2025 revenue of 28.8 billion yuan, a year-on-year increase of 7.4%, and a net profit of 10.3 billion yuan, up 35.5% year-on-year [1] - The gaming and related value-added services segment achieved revenue of 24 billion yuan, reflecting a 12.1% year-on-year growth, primarily due to the success of titles like "Identity V" and "Marvel Duel" [1] Group 2 - Daiwa noted that NetEase showcased upcoming games at its annual gaming event, including "Marvel Secret Wars" and "Destiny: Stars," which are expected to enhance the company's growth momentum in the gaming sector [2] - The company is set to release several new titles, with "Unveiling the World" and "Spirit Beast Adventure" expected in October, and "Frostpunk" scheduled for June 5 [2] - The anticipated new game releases are expected to strengthen NetEase's gaming business, supported by a robust product line and the resilience of traditional games [2]