机构：华安证券 有道业务"产模一体"战略推动应用落地 有道业务二季度实现收入14.2 亿 （13.3 亿consensus），yoy+7.2%，毛利率43.0%。有道AI 布局持续推 进，推出"子曰"教育大模型AI 创新应用，包括AI 全科学习助手"有道小P"APP、新一代虚拟人口语教练 Hi Echo 3.0 和新一代知识库问答引QAnything。有道在"产模一体"的框架下进行模型与产品的迭代升 级，实现多应用落地。 云音乐稳定运营，生态系统驱动用户转化 研究员：金荣 2Q25业绩： 25Q2，公司实现收入279.9 亿元（yoy+9.4%，qoq-3.2%）。公司二季度实现毛利180.5 亿元 （yoy+12.5%），毛利率为64.7%，同比增加1.8pct；实现调整后净利润95.3 亿元（yoy+32.0%），净利 率为34.2%，同比增加3.5pct。 长线运营游戏稳健运营，海外布局持续加深 公司二季度游戏及相关服务收入为228 亿（234 亿consensus），yoy+13.7%。二季度多款游戏周年庆版 本更新，持续发力。《逆水寒》手游推出两周年庆版本更新，登中国iOS 畅销榜第三。《七日世界》 ...

Core Viewpoint - NetEase's Q2 2025 financial report shows a net revenue of 27.9 billion yuan, a year-on-year increase of 9.4%, but the results fell short of market expectations, leading to a stock price drop of over 10% [2]. Group 1: Financial Performance - NetEase's Q2 net revenue reached 27.9 billion yuan, with game business revenue accounting for 22.8 billion yuan [2]. - The company achieved a net profit of 8.6 billion yuan in Q2, but faces increasing pressure due to declining revenues from non-gaming products [5]. Group 2: Product Performance and Market Challenges - The company has seen fluctuations in revenue from successful new products launched in the past two years, with no major new releases this year contributing to a challenging situation [2]. - Management is focusing on the performance of older products and their expansion in overseas markets, while newer products launched in the first half of the year were not mentioned in the earnings call [2]. - The gaming market in China is becoming increasingly competitive, with major players like Tencent emphasizing the importance of content-driven games, adding pressure on NetEase [5]. Group 3: Development and Investment Issues - NetEase's high investment in game development has not yielded corresponding returns in the short term, with some high-cost projects, such as "Wanmin Changge: Three Kingdoms," being halted [3]. - The company is facing challenges with ongoing disputes over alleged plagiarism between its games, which could further impact its reputation and performance [3].

Core Viewpoint - The company's 2Q25 performance met expectations but slightly fell short of market forecasts, with revenue growth of 9% year-on-year to 27.9 billion yuan and Non-GAAP net profit increasing by 22% to 9.5 billion yuan [1][2] Revenue and Growth - 2Q25 revenue reached 27.9 billion yuan, aligning with the company's expectations (27.6 billion yuan) but below Bloomberg's consensus (28.4 billion yuan) [1] - Online gaming revenue grew by 15% year-on-year, driven by titles such as "Identity V," "Yanyun," and "Marvel Showdown," along with some licensed games [1] - The flagship product "Fantasy Westward Journey" mobile game achieved a new quarterly revenue high in 2Q25 [1] Cost and Profitability - Gross margin for 2Q25 was 65%, showing slight improvements from 1Q25 (64%) and 2Q24 (63%), primarily due to increased margins in gaming and VAS businesses [2] - Sales expense ratio in 2Q25 recovered to 13%, up from 9% in 1Q25, indicating a faster recovery than market expectations [2] Future Outlook - The company plans to launch key new mobile games, including "Destiny: Stars" on August 28, with a strong pipeline of diverse products for the coming years [2] - The flagship products continue to perform well, with "Identity V" and "Fantasy Westward Journey" maintaining strong positions in the iOS sales charts [2] Valuation and Forecast - The company maintains its profit forecast, with current stock prices reflecting a valuation of 16x for Hong Kong and 15x for US stocks for 25/26 years Non-GAAP EPS [3] - The target price is set at 263 HKD and 169 USD, indicating an upside potential of 27% for Hong Kong stocks and 25% for US stocks [3]

Group 1 - The media sector is experiencing a rebound, with the gaming ETF (516010) rising by 1.3% and trading volume exceeding 100 million yuan [1] - Several new games have been launched recently, such as Giant Network's "Supernatural Action Group," G-bits' "Staff Sword Legend," and Friendship Time's "Noisy Cute Chef," which quickly entered the bestseller list [1] - Major gaming companies are actively expanding their business by developing and selling IP toy products, and creating peripheral products around films/games, enhancing revenue growth [1] Group 2 - The gaming ETF (516010) tracks the anime and gaming index (code: 930901), which is compiled by China Securities Index Co., Ltd., reflecting the overall performance of the domestic anime and gaming industry [2] - The index exhibits high growth potential and volatility, with a focus on cultural media and internet software services, providing a comprehensive view of the anime and gaming industry's development [2] - Investors without stock accounts can consider the Guotai CSI Anime Gaming ETF Connect A (012728) and Connect C (012729) [2]

Group 1 - The media sector is experiencing a rebound after a recent decline, with the film ETF (516620) showing a maximum drop of 1.72% but ultimately closing up by 0.3%, while the gaming ETF (516010) had a maximum drop of 2.41% and closed down by 0.17% [1] - The summer film market is expected to recover due to a low base from the previous year and a variety of quality content, with 52 films already scheduled for release, including notable titles like Chen Kexin's "Jiangyuan Nong" and other films set to be announced during the Shanghai Film Festival [1] - The gaming sector is seeing a surge in new game releases, with titles like Giant Network's "Supernatural Action Group" and G-bits' "Staff Sword Legend" quickly entering the bestseller lists, and several major IP products expected to launch in the second half of the year [1] Group 2 - Leading companies in the film and gaming industries are actively expanding their business by developing and selling IP toy products, as well as creating peripheral products around films and games to tap into new consumer markets [2] - The collaboration between Kuaishou's AI technology and NetEase's "Nirvana in Fire" mobile game aims to enhance social gameplay through AI video generation, indicating a potential shift in gaming experiences driven by AI [2] - The expansion of the new consumer market in China, coupled with AI-driven media technology, is expected to enhance the commercial value of upstream IP and downstream channel companies, presenting investment opportunities in film ETF (516620) and gaming ETF (516010) [2]

Market Overview - The market experienced a rapid decline in the afternoon, with the ChiNext Index leading the drop. The total trading volume in the Shanghai and Shenzhen markets reached 1.42 trillion yuan, an increase of 129 billion yuan compared to the previous trading day. Over 4,000 stocks fell, with the Shanghai Composite Index down 0.44%, the Shenzhen Component Index down 0.86%, the ChiNext Index down 1.17%, and the CSI A500 Index down 0.59% [1]. US-China Trade Talks - The first meeting of the US-China economic and trade consultation mechanism began in London, aimed at implementing the consensus reached during the recent phone call between the two countries' leaders. Despite fluctuations in tariffs, China's exports maintained steady growth, with a year-on-year increase of 4.8% in May, following an 8.1% increase in April. The growth in exports to the EU and ASEAN offset the decline in exports to the US [3][5]. AI Sector Insights - The AI-related sector saw a pullback, with recent technology revaluation narratives cooling down. However, AI capital expenditures are expected to remain high, and applications such as AI agents and embodied intelligence are gradually commercializing, supported by government policies. This sector continues to be a focus for investors [3][7]. - Major cloud providers and tech companies showed high capital expenditure growth in Q1, unaffected by tariffs and macroeconomic factors, indicating the potential for AI to develop independently [5]. Entertainment Industry Developments - The film market is expected to recover due to a low base from last year and a variety of quality content, with 52 films scheduled for release this summer. The gaming sector is also seeing a surge in new game launches, with several titles quickly entering bestseller lists [8][9]. - Leading companies in the film and gaming sectors are expanding revenue streams by developing and selling IP-related products, enhancing their commercial value [9]. Investment Trends - The banking sector has attracted long-term capital due to its low volatility, high dividends, and low valuations. Ping An Asset Management has increased its stake in Agricultural Bank of China to 15.09%, reflecting a trend of frequent investments in bank stocks [10]. - The upcoming annual dividend distribution in June and July is expected to enhance the appeal of dividend-paying assets. New policies encouraging dividend distributions among listed companies are likely to stabilize investor returns and improve valuations [11].

Investment Rating - The report maintains an "Outperform" rating for the media and internet sector [5][39]. Core Viewpoints - The short-term performance cycle is improving, and there is a long-term positive outlook on AI applications and IP trends [3][36]. - The media sector has shown a 3.50% increase, outperforming both the CSI 300 (1.73%) and the ChiNext Index (3.17%) [12][13]. - Key companies to watch include Kayi Network, Mango Super Media, and ByteDance, with significant developments in AI technology and gaming collaborations [3][5][18]. Summary by Sections Industry Performance - The media sector rose by 3.50% from June 2 to June 6, 2025, with notable gainers including ST Huicheng and Youzu Network, while losers included Rongxin Culture and Light Media [12][13]. - The top three films for the week generated a total box office of 3.55 billion yuan, with "Mission: Impossible 8" leading at 1.48 billion yuan [2][20]. Key Developments - OpenAI has partnered with the Indian government to launch AI education initiatives, marking its first international expansion [16][17]. - ByteDance released the SeedEdit3.0 image editing model, capable of processing 4K images with advanced editing features [17]. - Kuaishou's Keling AI has integrated video generation technology into NetEase's game "Nirvana in Fire," enhancing social gameplay [18]. Investment Recommendations - The report suggests focusing on gaming, advertising media, and film sectors, with specific stock recommendations including Kayi Network and Giant Network [3][36]. - The report emphasizes the potential of high-demand IP trends and AI applications across various sectors, including education and e-commerce [3][36]. Company Earnings Forecasts - Key companies such as Kayi Network and Mango Super Media are projected to have improved earnings per share (EPS) in the coming years, with Kayi Network expected to reach an EPS of 1.00 yuan in 2025 [5][39].

Group 1: Market Trends - The infant formula market is moving towards ultra-premium products, with a 2.3% year-on-year growth in total channels from January to April 2025, while offline sales declined by 1.4% and online sales increased by 12.3% [1] - The ultra-premium+ segment grew by 13.3% year-on-year, while the ultra-premium segment declined by 4.8%, high-end by 14.6%, and mid-high-end by 2% [1] - The market share of ultra-premium+ reached 33.2%, and ultra-premium at 31.2%, indicating a significant shift towards higher-end products [1] Group 2: Company Performance - Feihe achieved a revenue of 20.75 billion yuan in 2024, a 6% increase year-on-year, with infant formula revenue at 19.06 billion yuan, up 6.6% [2] - The sales of Feihe's ultra-premium product, Star Flying Fan Zhuo Rui, increased by over 60% year-on-year, reaching 6.7 billion yuan, while the classic Star Flying Fan series saw a decline [2] - Since 2017, Feihe has focused on ultra-premium products, increasing their share in infant formula from 22% in 2016 to 75% in 2024 [2] Group 3: Foreign Brands Performance - Danone reported significant market share growth in China, particularly with its ultra-premium Aptamil series [3] - FrieslandCampina's core infant formula brand, Friso, maintained double-digit growth in the Chinese market in 2024 [3] - Nestlé's infant formula business in China achieved high single-digit growth, with a recovery in the previously declining Wyeth Illuma brand [3] Group 4: Strategic Insights - The decline in newborn numbers has made ultra-premium positioning the most important strategy for infant formula giants [4]

Core Viewpoint - The article emphasizes that 2025 will be a pivotal year for the integration of AI across various industries, particularly in gaming, where companies are leveraging AI to enhance user experiences and streamline development processes [4][10]. Group 1: AI Integration in Gaming - Major gaming companies are actively incorporating AI into their products, with Tencent's "Peacekeeper Elite" introducing an AI character named Jilly that offers gameplay tips and engages in conversation [5]. - NetEase's "Nirvana in Fire" mobile game has launched the world's first AI model arena, allowing real-time interaction between players and AI characters [6]. - MiHoYo's upcoming game "Whispers from the Star" features an AI character named Stella, capable of real-time dialogue generation and emotional feedback based on player input [6][9]. Group 2: AI in Game Development - AI tools are being integrated into various stages of game development, significantly improving efficiency; for instance, Shengqu Games has reported an 80% increase in production efficiency through AI in art creation [10]. - Companies like Century Huatong have invested in large data centers to support AI capabilities, while Tencent has launched the "Hunyuan-Game" project to innovate game content production using AI [12]. Group 3: Opportunities for Independent Developers - Independent developers are finding new opportunities through AI, with projects like "Martial Arts World AI" showcasing innovative narrative structures and gameplay mechanics [14]. - The "Moe Claw Party" game, developed by a team led by a former ByteDance executive, combines AI with companionship gameplay, allowing players to interact with customizable AI pets [14]. Group 4: Industry Events and Support - The "Shulong Cup" global AI game and application innovation competition is underway, offering a prize pool of 600,000 yuan and support for promising projects [19][31]. - Lenovo is supporting the competition by providing high-performance hardware to assist developers in deploying large AI models, thereby facilitating the practical application of AI in game development [26].

Core Insights - 2025 is identified as a pivotal year for the next wave of AI integration across various industries, particularly in gaming and content creation [1][2] - Major gaming companies are actively incorporating AI into consumer-facing products, enhancing user experience and operational efficiency [4][6] - Independent developers are also seizing opportunities to innovate with AI technologies, creating new gameplay experiences [5][9] Group 1: AI Integration in Gaming - The gaming industry is leading the charge in AI integration, with Tencent's "Peacekeeper Elite" introducing an AI digital spokesperson, and NetEase's "Nirvana in Fire" offering an AI model competition arena [2][4] - MiHoYo's upcoming game "Whispers from the Star" features real-time AI interactions, allowing players to influence the narrative through dialogue with the AI character Stella [2][4] - AI tools are being utilized in game development to enhance efficiency, with companies like Century Huatong reporting up to 80% efficiency gains in art creation processes [4][6] Group 2: Opportunities for Independent Developers - Independent developers are exploring AI applications from the ground up, creating innovative projects that leverage AI for unique gameplay experiences [5][9] - Examples include the "Martial World AI" text-based game, which utilizes AI for flexible narrative structures, and "Moe Claw Party," which combines AI with companionship gameplay [5][9] Group 3: Technological Infrastructure and Support - Major tech firms are investing in infrastructure to support AI applications across various sectors, with Tencent launching the "Hunyuan-Game" platform for industrial-grade AIGC game content production [6][8] - Lenovo is supporting the "Shulong Cup" competition, providing high-performance hardware to assist developers in deploying large AI models [20][21] - The "Shulong Cup" aims to foster innovation in AI gaming and applications, offering substantial financial support and resources for promising projects [10][24]