Fixed Income - The report continues to be bullish on credit bonds with yields above 2%, suggesting a focus on medium to long-term high-yield municipal bonds and bank perpetual bonds, particularly from Minsheng Bank, Bohai Bank, and Hengfeng Bank [2][9][10] - The credit spread for AA+ leisure services has significantly widened, while the credit spread for the pharmaceutical industry has compressed [2][9] - The overall credit bond yield has declined, with medium to long-term bonds performing better than short-term ones [2][9] Media and Internet - Tencent has launched a new short drama mini-program on WeChat, which is expected to enhance user engagement with free short dramas and improve advertising efficiency [12][13] - The new program features a simple interface and supports sharing and generating promotional materials, which may increase platform traffic and ad inventory [12][13] - The report highlights the importance of new technology in content production, particularly in the context of AI advancements [14] Pharmaceuticals - The pharmaceutical index has decreased by 4.35%, with a notable underperformance compared to the CSI 300 index [21][22] - Despite the overall downturn, core innovative drug companies like Innovent Biologics and Zai Lab have shown resilience [21][22] - The report emphasizes the potential of the GLP-1 weight loss sector, with significant sales expected for drugs like Semaglutide, and suggests monitoring companies like Luyin Pharmaceutical and Gensun Biopharma for investment opportunities [23][25] Transportation - SF Express is leading the growth in the express delivery sector, while oil shipping rates continue to rise due to geopolitical tensions [4][6] - The report forecasts a 5.4% year-on-year increase in passenger transport volume for the civil aviation sector during the summer travel season [4][6] - The introduction of new delivery vehicles by Cainiao is expected to enhance logistics efficiency [4][6] Metals and New Materials - The report indicates that copper prices are fluctuating due to ongoing negotiations for long-term contracts, with a focus on financial attributes [5][6] - The extension of cobalt export bans in the Democratic Republic of Congo is expected to tighten supply and potentially increase prices [5][6] - The report also notes that rare earth materials are gaining export licenses, which may lead to price increases [5][6] Overseas and Education Research - The report discusses the implications of U.S. military actions in Iran, suggesting it could be a significant turning point in international relations [28][32] - The Sprott Physical Uranium Trust's announcement of a $200 million financing round is expected to support uranium prices in the upcoming quarter [28][32] - The report highlights the importance of maintaining a cautious investment approach amid geopolitical uncertainties [28][32]

Investment Rating - The report maintains a "Positive" investment rating for the media internet industry [2] Core Viewpoints - Tencent has recently launched a new short drama mini-program on WeChat, which features a simple product design and a free model. This initiative is expected to enhance user engagement with free short dramas on the platform and improve advertising efficiency [3][4] - The report emphasizes the importance of high-quality new products and the potential for elastic trading opportunities in the current market [2] Summary by Sections Industry Performance - From June 16 to June 20, 2025, the media sector in A-shares experienced a decline of 1.81%, ranking 15th among all industries. The Shanghai Composite Index fell by 0.51%, and the Shenzhen Component Index decreased by 1.16% [12][13] AI Applications - MiniMax has launched a new video generation model, Hailuo 02, with various versions available. The model supports the highest industry input context of 1 million tokens and offers competitive pricing for API access. Companies embracing new technologies in AI are expected to benefit significantly [4][27] Gaming Sector - Perfect World is set to begin closed beta testing for its key product "Yihuan" on June 26, while West Mountain Residence will launch "Jiexianji" globally on July 2. The report suggests focusing on leading gaming companies exploring AI+gaming paradigms, as successful product launches could lead to a reevaluation of related companies' values [5][6] Film Sector - The report highlights that over 60 films have been scheduled for the summer of 2025, with the potential for strong box office performance. Key films include "Luo Xiaohei Battle Record 2," which is set to release on July 18, 2025 [6][8] Card and Trendy Toys - The report notes a high level of enthusiasm in the card and trendy toy sectors, with companies increasingly focusing on integrating their products with popular trends. It recommends monitoring companies involved in these high-growth areas [7] Internet Companies - Major internet companies like Tencent, Alibaba, and Meituan are expected to leverage their platform advantages to enhance performance. The report suggests that domestic open-source models may help these companies overcome computational and chip limitations, leading to a potential revaluation in the AI development space [7][8]