September Report: AI direction: We believe we need to continue to pay attention to the progress of the overseas OpenAI model launch.

Hot direction: We believe that under the catalyst of the blockbuster game “Black Myths: Goku”, the “millet economy” spawned by the continuity of IP values has received attention. “Millet” comes from the homonym of the English word “goods” (goods). It refers to products derived from popular ACG (animation, comics, and games) and other works, including badges, cards, and posters, which are mainly promoted by Gen Z and Gen Alpha consumers. At the same time, the transformation of shopping centers to ACG also provides a space for the “millet economy” to belong.

We believe that: 1) the media industry has had deep early adjustments and a long cycle; 2) the implementation of policies such as the State Council's “Opinions on Promoting High-Quality Development of Service Consumption” will hopefully enhance the high-quality supply of the industry and further stimulate demand for cultural consumption; 3) Continue to introduce new technologies, accelerate content innovation, and explore new directions.

Recommended attention: 1) Hong Kong Stock Internet: [Tencent Holdings, Kuaishou-W, Bilibili-W, Xindong Company]. 2) Marketing section: [Audience Media, Easy World]. 3) Game section: [Kaiying Network, Shenzhou Taiyue, Century Huatong, Gibbit/37 Entertainment], etc. 4) Publishing sector: Active transformation [Southern Media, Anhui New Media, City Media, Times Publishing]; High dividends [Chinese Media, Phoenix Media, Zhongnan Media]. 5) Film sector: [Optical Media, Wanda Film, Bona Pictures], etc.; IP [Chinese Online, Shanghai Film], etc. On the AI side [Kunlun Wanwei, Meitu Company, Huace Film and Television, Focus Technology, Guomai Culture], etc., 6) Continue to focus on the direction of the booming lottery [Song Yang Resources].

Hong Kong stock internet. Last week (2024.08.23-2024.08.30), the top three major Hong Kong stock Internet companies rose by IGG (30.12%), Zulong Entertainment (27.97%), and Weimeng Group (9.48%); the top three fell by Cat Eye Entertainment (-10.85%), NetEase (-10.70%), and Yinguniverse (-7.78%).

The trend of Haitong Group in August. The Haitong Media portfolio rose 0.06% monthly in August, the Shenwan Media Index fell 1.65%, and the Shanghai and Shenzhen 300 Index fell 3.51%.

Haitong Media September Group. Tencent Holdings (20%), Southern Media (20%), Ciwen Media (20%), Shenzhou Taiyue (20%), Easyworld (10%), Kaiying Network (10%).

Risk warning: Policy and regulatory changes, and the progress of film, television and game content development falls short of expectations.