China Galaxy Securities: Performance Driver+AI Empowerment as the Core Driver of the Media Industry Focus on AI Applications and Content Sectors

The Zhitong Finance App learned that China Galaxy Securities released a research report saying that performance-driven plus AI empowerment is still the core driving force for the growth of the media and Internet industry. It is recommended to focus on the core Internet assets of Hong Kong stocks, which have continued to increase investment in AI and have been supported by multiple benefits over a long period of time, AI applications and related subsectors related to the industry chain, and content sectors with continuous production of high-quality content and high certainty in performance release. It is recommended to focus on: 1) Hong Kong Stock Internet; 2) AI applications and industry chain-related; 3) Content section.

The main views of China Galaxy Securities are as follows:

Film and television

The supply of film and television is stable, and the market is picking up. According to Lighthouse Professional Edition, in November 2025, the national movie box office was 3,553 billion yuan (including service fees), up 89.29% year on year and 36.03% month on month. In terms of the film's specific performance, “Zootopia” grossed 1,731 million dollars in a single month, accounting for 54.32% of the monthly box office, making it the box office winner of the month.

game

Double-end interaction became the main force of growth. In October 2025, the actual sales revenue of the domestic game market was 31.359 billion yuan, an increase of 7.8% over the previous year. Client-side game performance was strong, with revenue of 7.227 billion yuan, up 29.4% year on year; mobile game revenue was 22.63 billion yuan, up 2.4% year on year.

Overseas revenue from self-developed games was US$1,799 million, an increase of 11.9% over the previous year. In terms of products, “Wang Zhe Rongyao”, “Operation Delta” and “Endless Winter” ranked in the top three revenue lists. The November edition released 178 models, with a cumulative total of 1,532 models during the year, an increase of more than 29% over the previous year. The supply side continued to improve.

marketing

The general market is stable, moderate and positive, and the trend of segmentation is divided. According to CTR Media Intelligence data, overall advertising market spending rose 4.3% year on year from January to October 2025, and monthly advertising spending rose 10.6% year on year in October, with no change from month to month. Looking at changes in advertising spending across the industry, from January to October 2025, the post and telecommunication, personal goods, entertainment and leisure, IT products, and self-service office services industries increased, with publication costs rising by 80.8%, 52%, 29.1%, and 19.6%, respectively; pharmaceuticals, alcoholic beverages, and cosmetics/bathroom supplies showed varying degrees of decline, at -16.1%, -12.3%, and -6.1%, respectively. Other industry publications showed slight fluctuations.

AI continued to iterate in November. Competition among major manufacturers focused on long text, multi-modality, and reasoning efficiency. The AI field was updated intensively in November, and the big model continued to evolve in the direction of long text, strong reasoning, and multi-modal integration

Overseas, OpenAI launched the GPT-5.1 series, which introduced a “compression” mechanism in coding scenarios to support ultra-long continuous programming; Google Gemini 3 strengthened reasoning and multi-modal capabilities to achieve “ambient programming”; and Meta released an Omnilingual ASR system supporting 1600+ languages to improve the efficiency of cross-language understanding. Domestic manufacturers followed up simultaneously, and the Qianwen app was launched, with over 10 million downloads in the first week of public beta; Wenxin said 5.0 supports multi-modal joint input and output; IFLY Starfire X1.5 doubles its inference efficiency.

Risk warning: Risk of AI technology development falling short of expectations; risk of content regulation; risk of industry competition; risk of application of related technology falling short of expectations.