Huaxi: Sony and Unity release new products, the consumption of cultural tourism in theaters continues to recover.

Huaxi released a research report stating that recently, Sony and Unity platform will release new products. The performance of PS5 Pro is expected to increase by about 45% compared to the standard version, and Unity 6 will be the "stable and high-performance" version of Unity so far. The institution maintains its previous view that with the overall recovery of entertainment consumption and the performance of blockbuster games, it continues to recommend internet stocks in Hong Kong. Publishing, AI film and television sectors are also expected to benefit from industry policies, with targets including Tencent (00700), 37 Interactive Entertainment Network Technology Group (002555.SZ), Beijing Jetsen Technology (300182.SZ), Funshine Culture Group (300860.SZ), Mingchen Health (002919.SZ), Kingnet Network (002517.SZ), Zhejiang Dafeng Industry (603081.SH), Shenzhen AOTO Electronics (002587.SZ), Shanghai Fengyuzhu Culture Technology (603466.SH). Huaxi's main points are as follows: (I) Market Review In the 37th and 38th weeks of 2024 (actual trading days from September 9th to September 13th, and September 18th to September 20th), the Shanghai Composite Index fell by 1.05%, the CSI 300 Index fell by 0.94%, and the ChiNext Index fell by 0.1%. The Hang Seng Index fell by 0.43%, the Hang Seng Internet Index fell by 0.42%, and the industry-leading Hang Seng Index increased by 0.01pct. The SW Media Index fell by 0.87%, lagging behind the ChiNext Index by 0.77pct, ranking 15th in the performance rankings of the 31 industries under the Shenwan Level 1 classification. Among the sub-industries, internet services, broadcasting and advertising marketing were the top three, with increases of 2.73%, 1.45%, and a decrease of 0.59% respectively. (II) Core Viewpoints & Investment Recommendations Recently, Sony and Unity platform will release new products. The performance of PS5 Pro is expected to increase by about 45% compared to the standard version, and Unity 6 will be the "stable and high-performance" version of Unity so far. The upgrade iteration of software and hardware will drive the gaming industry into a new round of innovative changes, and the success of "Black Myth: Wukong" proves the game production capabilities of Chinese manufacturers, anticipating the commercial prospects of domestic blockbuster games. During the Mid-Autumn Festival, the film and tourism consumption continued to recover. According to Maoyan data, as of September 20th, the box office in September had surpassed 1 billion RMB. The total number of screenings during the 2024 Mid-Autumn Festival exceeded 1.356 million, with a total box office exceeding 383 million RMB, breaking the record for the Mid-Autumn Festival box office in Chinese film history. During the Mid-Autumn Festival holiday, despite the impact of Typhoon "Bebiga", the cultural and tourism market in Jiangsu Province demonstrated extraordinary resilience and innovative vitality. Data from Meituan and UnionPay Commerce both show that Jiangsu's cultural and tourism consumption ranks second nationally, second only to Guangdong. Maintaining the previous view that with the overall recovery of entertainment consumption and the performance of blockbuster games, it continues to recommend internet stocks in Hong Kong. The publishing, AI film and television sectors are also expected to benefit from industry policies, with targets including Tencent, 37 Interactive Entertainment Network Technology Group, Beijing Jetsen Technology, Funshine Culture Group, Mingchen Health, Kingnet Network, Zhejiang Dafeng Industry, Shenzhen AOTO Electronics, Shanghai Fengyuzhu Culture Technology. (III) Media Industry Data The top three movies in the cinema ranking are "Wild Child", "Redemption", and "Rebirth"; the top three online movies are "All In", "Sun Wukong's Great Adventure to Shituoling", and "Safe Evacuation from the 21st Century"; the top three TV series are "Ordinary Song", "Snow Maze", and "Changle Song"; the top three variety shows are "YES OR NO Season 3", "Chinese Restaurant Season 8", and "Flowers and Youth Season 6"; the top three anime are "Fights Break Sphere Season", "Xianni", and "Devouring Starry Sky"; the top three best-selling iOS games are "King of Glory", "Dungeon & Warrior: Origin", and "Peace Elite"; the top three popular Android games are "Exciting Town", "Returning Dragon Tide", and "Dragon Clan: Gate of Cassel". Risk Warning: Regulatory policy uncertainty risk; macroeconomic downturn risk.