Guoyuan: Optimistic about AI investment theme and expected to drive the valuation and performance improvement of the media sector.

Guoyuan released a research report stating that they are optimistic about the investment theme of AI, optimistic about the continuous prosperity of model iteration and application side in 2025, and are expected to drive the valuation and performance improvement of the media sector. In terms of sectors, for gaming: overall improvement in sentiment with the launch of new games, highlights include small games and MR contributions, and positioning in game companies with rich product pipelines, such as Kingnet Network (002517.SZ). For publishing: stable cash flow, high dividends, actively monitoring companies like Southern Publishing and Media (601900.SH). For film and IP, supply drives box office performance, AI drives IP reassessment, with a focus on companies like Mango Excellent Media (300413.SZ). Key points from Guoyuan: Artificial Intelligence: OpenAI officially launched the complete version of o1 and sora models, and released o3 model; CES2025 opened. In December, models continued to iterate domestically and internationally, OpenAI conducted a 12-day new product launch event, sequentially launching the complete version of o1, sora model, and announcing the latest reasoning model o3. Other overseas companies continued to break through on the model side, with the Li Feifei team releasing WorldLabs, Google launching the image generation model Imagen3 and the video generation model Veo2, and Meta releasing the open-source AI model Llama3.3; Domestic models are also undergoing continuous iteration, with Tencent launching the hybrid large model and open-sourcing the video capability of Wensheng, Kimi releasing the visual thinking model k1, and the domestic large model DeepSeek-V3 being open-sourced. CES2025 opened, with Huang Renxun delivering the opening keynote speech, announcing the launch of RTX5090D GPU, NVIDIA Cosmos world basic model platform, and other heavyweight content. Gaming: In 2024, the total size of the Chinese gaming market was 325.83 billion yuan, a year-on-year increase of +7.53%, with the mobile gaming market reaching 238.17 billion yuan, a year-on-year increase of +5.01%. In December, 122 domestic game approvals were issued, along with 13 imported game approvals, with a total of 1306 domestic game approvals and 110 imported game approvals issued for the year. A-share companies such as Kingnet Network with games like "The Legend of the Ancient Dragon", "Three Kingdoms: Rise of the Overlord", "Small Soldiers Conquer the World", and "Super Commanders", as well as Beijing Ultrapower Software with the product "The Seventh Realm Survivor", received domestic game approvals. In Hong Kong stocks, NetEase's "Infinite" received a domestic game approval, Tencent's "Monster Hunter: Traveler", "Red Alert: Glory", and NetEase's "Head Pursuit" received imported game approvals. As for new releases, NetEase's mobile game "Yanyun Sixteen Sounds" is scheduled for release on January 9th; G-bits Network Technology's "Questioning Sword Longevity" launched on January 2nd; Perfect World's "Gods and Demons Continent" will be launched on January 17th, Mujing's "Peak Victory" will be launched in January, with high-quality new games boosting industry sentiment. Film and Television: In 2024, the total annual domestic box office was 42.502 billion yuan, a year-on-year decrease of 22.61%. The domestic box office champion was "Hot Blood", with a box office of 3.417 billion yuan, accounting for 8.0% of the total box office for the period; the second place was "Riding the Storm 2" (box office of 3.361 billion yuan, accounting for 7.9%); the third place was "Claw Machine" (box office of 3.328 billion yuan, accounting for 7.8%); The 4th and 5th places were taken by "The 20th Law" and "Boonie Bears: Blast into the Past", with 4 of the top 5 box office films coming from the Spring Festival period. Risk warning -Risks of product performance falling below expectations -Risks of artificial intelligence technology development falling below expectations -Risks of macroeconomic performance falling below expectations -Risks of tightening policy regulations -Risks of increased industry competition