CITIC Securities: Optimistic about the continued advancement of the AI industry and the commercialization of intellectual property (IP) driving the media sector industry.

CITIC Securities pointed out that it is optimistic about the continued advancement of the AI industry and the commercialization of IP driving the media sector, and recommends paying attention to the performance improvement brought by the new product cycle in the gaming sector, and the performance increment driven by IP commercialization. It is suggested to screen targets from three dimensions: 1) focusing on high-quality and high-dividend targets, with a focus on gaming, marketing, publishing, and other directions. 2) New technologies and new consumer trends, it is recommended to pay attention to AI for new technologies and IP commercialization for new consumer trends. For AI, it is suggested to focus on gaming, marketing, education, and other directions, while for 2C applications, it is recommended to focus on companion products; for IP commercialization, it is suggested to focus on the grain economy, AI toys, and animated movies. 3) With relaxed regulation, the gaming and film industry is entering a stable development channel, and companies with high-quality content reserves are expected to continue to perform well. The media industry maintains an "outperform" rating compared to the broader market.