Tianfeng: OpenAI released the most powerful model o1, focusing on the progress of AI large models.

Tianfeng released a research report stating that in the field of AI, OpenAI recently released the strongest model o1, as well as the landing of popular domestic AI applications such as Kwai Ke Ling and Kimi, the competition in AI applications continues to be intense. It is recommended to focus on investment opportunities in AI large models and related high-quality algorithms. In terms of IP derivatives, according to Zhaoshi Consulting report, the market size of the Chinese collectible card industry has increased from 700 million in 2017 to 12.2 billion in 2022, and is expected to grow rapidly at a compound annual growth rate of 20.6% to 31 billion in 2027. In this fast-growing market, in 2022, Card Game has a 71% market share leading other companies. It is recommended to focus on companies involved in IP card games and related layouts. Subsequently, it is recommended to track the landing of Card Game companies listed in Hong Kong stocks. It is recommended to focus on Shanghai Film, Shanghai Yaoji Technology (jointly covering light textiles/light industrial textiles), and Alpha Group. In the gaming sector, "Honor of Kings: World" appeared at an Apple Inc. event, and miHoYo AI large model completed the record-filing. In terms of industry dynamics: According to Game Grapes, Tencent's next flagship game "Honor of Kings: World" appeared at an Apple Inc. event, and according to the host of the event, the game will be released next year, with the specific launch date subject to Tencent's official announcement. Tencent's "Delta Force" is scheduled to be released simultaneously on PC and mobile platforms on September 26. Regarding rankings tracking: According to Qimai Data's IOS game bestseller list, last week (September 7, 2024-September 13, 2024), Tencent's "Peace Elite" jumped to first place since September 10 due to gameplay updates and new activities. Zulong's new game "Dragon's Tribe: The Gate of Castle" topped the IOS free list on September 12, entered the top 12 of the IOS game bestseller list the next day. Although there have been changes in the top 10 bestseller list of IOS games last week, Tencent games still occupy 50%-70% of the positions. In August, the number of monthly game approvals reached a new high since 2019, combined with the recent phenomenon of the outstanding product "Black Myth: Wukong" being recognized by CCTV, indicating the industry's policy environment is improving. Currently, A-share game companies have rich reserves of games, such as Kingnet Network's "Douluo Continent: The Legend of Extermination" and "The Grave Robbers' Chronicles: The Journey", G-bits Network Technology's "Asking Sword Changsheng" and "Cane Sword Legend", and Sanqi's "Douluo Continent: Soul-Hunting World" and "Spare Son", etc. Tianfeng expects that with the improvement of the new game release window, the pipeline of A-share game companies is expected to accelerate, and it is recommended to continue to focus on the potential fundamental improvement resilience brought by new game releases. Recommended to focus on Beijing Ultrapower Software (jointly covering computer components), Kingnet Network, Shanghai Yaoji Technology (jointly covering light textiles/light industrial textiles), G-bits Network Technology. In terms of publishing, the industry has strong defensive attributes, companies generally have strong operating barriers and continuous stable dividend capabilities. At the annual level, the publishing industry with high dividends is continuously favored. It is recommended to focus on high-quality local state-owned enterprises with rich cash and deep channels, such as Changjiang Publishing & Media. Companies with high dividend rates and dividend expectations, while actively expanding new businesses such as smart education, after-school services, research and study, such as Shandong Publishing & Media. Regarding movies, as of September 17, 2024, a total of 21 films were scheduled for release during the 2024 Mid-Autumn Festival, including "The Wandering Earth 2" (re-release), "Journey to the West: Sun Wukong vs. White Bone Demon", "Wild Kids", etc., with a total box office exceeding 331 million yuan. As for the National Day lineup, a total of 10 films have been scheduled so far, including "Crisis Airways", "749 Bureau", "Volunteer Army: Battle of Survival", covering various genres such as comedy, disaster, history, animation, crime, etc. The movie supply is relatively sufficient, with a rich variety of genres, which satisfies the diverse viewing needs of the audience well. The release of supply is expected to stimulate potential market demand and drive the continuous warming of the overall box office market. It is recommended to focus on MAOYAN ENT, participating in the production/distribution of multiple films in key time slots, and optimistic about the contribution elasticity. During the National Day, the company participated in the scheduling of 3 films, including "Crisis Airways" (major investment and control + promotion, with 263,000 people interested in watching on Maoyan), and ""Safe entry and exit" (Mainly controlled and invested by Maoyan wants to attract 81,000 viewers), "Panda Plan" (Mainly controlled and invested + released). With the increased concentration of Wanda Film Holding theaters and the transformation of content sectors under the recovery of the overall market, there will be synergy.Risk Warning: if the game's online revenue falls short of expectations; the risk of a resurgence in domestic epidemic; slowing domestic economic growth; insufficient effectiveness of policy stimulus.