Guosen: Continues to be optimistic about the application of AI and the high prospects of the IP valley. We are focusing on opportunities for reversal in the gaming, film, and advertising sectors.

Guosen released a research report stating that they continue to be bullish on AI applications and the high prosperity of IP Valley, focusing on the turnaround opportunities in the gaming, film and television, and advertising sectors. 1) DeepSeek will open source five projects, Alibaba's Tong Yi Wan Xiang announced the upcoming open source video generation model WanX2, OpenAI is expanding its global artificial intelligence proxy service Operator, xAI's game studio uses Grok3 to generate complete games in minutes, and the application side of Android is approaching, continuing to be optimistic about AI application opportunities. The rise of domestic animation, the prosperity of the IP Valley industry continues to rise, optimistic about IP, operations, channels and other aspects, core recommendations include POP MART (09992). Also pay attention to VR/AR, data elements, and cultural overseas expansion and other broad technology themes; 2) "Ne Zha 2" continues to break box office records, bullish on the recovery of the film and television sector, recommending channels such as Wanda Film Holding (002739.SZ); prospects for prosperity are expected to continue to improve at the bottom: the gaming sector recommends targets such as Kingnet Network (002517.SZ); on the media side, focus on the growth of advertising expenditure brought about by the economic recovery, such as Focus Media Information Technology (002027.SZ); also pay attention to the publishing sector from the perspective of high dividends and low valuation. Guosen's main points are as follows: Key focus: DeepSeek will open source 5 major code repositories, Alibaba's Tong Yi Wan Xiang will open source video generation models, OpenAI will expand globally with Operator, xAI has established a game studio. 1) DeepSeek announced the upcoming open source of five projects; 2) Alibaba's Tong Yi Wan Xiang announced the upcoming open source of the video generation model WanX2.1; 3) OpenAI is expanding globally with Operator to improve user experience; 4) xAI under Musk announced that its newly established game studio can use the Grok3 model to generate complete games in minutes, potentially disrupting the gaming industry. Key data tracking this week: "Ne Zha: Birth of the Demon Child" drives movie viewing demand. 1) This week (February 17-February 23) box office revenue was 19.63 billion yuan. The top three movies are "Ne Zha: Birth of the Demon Child" (16.69 billion yuan, accounting for 85.0% of box office revenue), "Detective Chinatown 3" (1.41 billion yuan, accounting for 7.2%), and "Boonie Bears: The Wild Life" (0.29 billion yuan, accounting for 1.4%); 2) In terms of variety shows, "Actors Please Take Your Place 3", "Blooming Road", "Wife's Romantic Travel 2025", "Mars Intelligence Agency Season 7", and "Happy Departure Mountain Sea Season" are among the top ranked; 3) In terms of games, in January 2025, the top three Chinese mobile game revenue were DotDot Interactive's "Whiteout Survival", miHoYo's "Genshin Impact", and Tencent's "PUBG Mobile". Risk warning: Regulatory policy risks; performance risks; goodwill and asset impairment risks, etc.