Intelligence Financial APP learned that Guosen Securities released a research report, continuously bullish on the media internet sector driven by themes and business cycle reversal. 1) The economic situation is expected to continue to improve at the bottom, recommending symbols such as Kingnet Network (002517.SZ) in the gaming sector; supply improvement and the box office market are expected to continue to improve, focusing on the possible recovery of the film and television sector, recommending Wanda Film Holding (002739.SZ) and Beijing Enlight Media (300251.SZ) for example; on the media side, focus on the advertising growth brought by the economic bottom movement recommending Focus Media Information Technology (002027.SZ) and so on; IP wave play recommended Shanghai Yaoji Technology (002605.SZ) and so on; also pay attention to the publishing sector from the perspective of high dividends and low valuation. 2) Bullish on opportunities in themes such as going overseas, AIGC, VR/AR; in the short term, important updates to Intelliclear Shadow, "Myth of Wu Kong" nominated for the Golden Joystick Awards, internal testing of AI video generation by Byte DouBao, outstanding performance of AI search applications in October, focusing on IP, large models, and application segments.

Guosen Securities' main points are as follows:

Media sector performance this week: a 3.25% increase in the industry, underperforming the CSI 300 Index, and underperforming the ChiNext Price Index.

This week (11.01-11.08), the media industry rose by 3.25%, underperforming the CSI 300 (3.25%) and underperforming the ChiNext Price Index (7.26%). The top gainers were Kaisa Jiayun Technology Inc., Huawen Media Group, Zhejiang Sunriver Culture Tourism, Perfect World, etc., while the top decliners were Simei Media, Hunan TV & Broadcast Intermediary, Guangdong Insight Brand Marketing Group, Qitian Technology Group, etc. Horizontally speaking, this week the media sector ranked 23rd in terms of price change among all sectors.

Key focus: Dou Bao AI video generation is in beta testing, with outstanding performance in AI search applications in October.

1) News on November 8th, Intelliclear Shadow's video generation quality has reached the level of movies, and New Clear Shadow can also generate sound effects matching the visuals, this feature will be launched for public testing this month; 2) News on November 5th, the Golden Joystick Awards officially announced the list of nominees for the 'Best Game of 2024,' 'Myth of Wu Kong' has been nominated. 3) ByteDance's AI intelligent assistant DouBao is currently testing the video generation function. 4) The October AI product ranking is released, with outstanding performance in AI search applications.

This week, important data tracking: November box office continues to rebound.

1) This week (November 2nd to November 9th), the movie box office was 0.399 billion yuan. The top three box office movies were "The Burning City" (87.2107 million, accounting for 21.8%), "Venom: Let There Be Carnage" (81.4932 million, accounting for 20.3%), and "The Story Unsung" (75.8445 million, accounting for 18.9%); 2) In terms of variety shows, "Goodbye My Love Season 4", "Blind Box Travel Agency", "Heart Signal Season 7", "Keep Running Season 8", and "Blossoms and Youth Season 6" are at the top; 3) In the gaming sector, the top three Chinese mobile game revenues in September 2024 were Dotlab Interactive's "Whiteout Survival", miHoYo's "Honkai: Star Rail", and Tencent's "PUBG MOBILE".

Risk warning:

Regulatory policy risks; performance risks; goodwill and asset impairment risks, etc.