Explosive growth in the short drama market, with the number of institutionally rated stocks leading the way in the short drama concept stocks.

On June 19th, the A-share market's short drama sector surged in the afternoon. Short dramas, as a new form of film and television created in the mobile internet era, have experienced explosive growth since 2023. By 2024, the number of micro-drama users in China has exceeded 600 million. Oriental Securities research report believes that currently Chinese small and medium-sized enterprises are in a high-growth period for short drama platforms created overseas, with the potential for the top overseas platforms to become oligopolies in the future. According to Securities TimesData Treasure statistics, there are a total of 39 A-share listed companies involved in short drama productions. Looking at the first quarterly financial reports, 14 companies had a year-on-year increase in net profit attributable to the parent company, 5 companies turned losses into profits, and 2 companies reduced losses. Among the listed companies with increased net profit, Happy Blue Ocean, Zhejiang Wenhui, Pingzhi Information and Huace Film & TV had the highest year-on-year growth rates. In terms of institutional attention, the companies with the highest number of ratings from institutions include Kaiying Network, Mango Super Media, Perfect World, Shanghai Film, Huace Film & TV, Gravity Media, and Bona Film Industry and others.