According to the Securities Times app, Pacific Securities released a research report stating that in 24Q3, the media sector's holding ratio fell to 0.55%, the lowest since 23Q3-24Q2, and the sector still maintains a underweight position. The gaming industry regulation is stable, with a sustained high number of monthly game licenses issued. In addition, from January to October, the total number of domestically approved game licenses reached 1072, already exceeding the total for the entire year of 23. Domestic AI multimodal continues to advance, Kuaishou launched the AIGC ecological cooperation platform powered by AI technology, enabling creators and efficiently connecting marketing supply and demand sides, potentially improving marketing service efficiency. Recommendations to watch: 1) Gaming: G-bits Network Technology (603444.SH), Kingnet Network (002517.SZ), etc. 2) AI: Kunlun Tech (300418.SZ), etc.

The main points of Pacific Securities are as follows:

In 24Q3, the media sector's heavy-weighted stock market value ratio fell to 0.55%, still maintaining an underweight position.

In actively biased stock-heavy type funds in 24Q3, the media sector accounts for 0.55%, a decrease of 0.19 percentage points compared to the previous period. Compared to 23Q3-24Q2 media sector ratios of 1.07%/0.76%/0.86%/0.74%, the holdings in 24Q3 fell to the lowest previous value. The difference between the fund's media sector holdings ratio and the media company's market cap ratio is -1.01 percentage points, expanding by 0.40 percentage points compared to 24Q1's -0.61 percentage points, still maintaining an underweight position overall.

In October, 113 domestic games and 15 imported games were approved for release.

In October, the National Press and Publication Administration released information on the approval of domestic and imported online games. For domestic games, a total of 113 games were approved, with the monthly approval number exceeding 100 for 5 consecutive months. As of this month, the number of domestically approved game licenses in 24 reached 1072, surpassing the total for the entire year of 23. The games approved this time include: Tencent's "Dragonstone Wars", Kingnet Network's "Black Dragon Storm", Hangzhou Electronic Soul Network's "Dragon's Treasure Hunter", and more. As for imported games, a total of 15 games were approved. In 24, the pace of issuing imported game licenses remained stable, with one issuance every two months. The games approved this time include: Tencent's "Burst Fireteam", Kingnet Network's "Eternal Dragon Family", G-bits' "Convenience Store Opening Diary", and more. At the same time, 3 game approval information changes were made, including Netease's addition of the "Light·Chaser" client. The stable pace of game license issuance and the high number of licenses issued are expected to drive continuous supply of quality content due to stable industry regulation.

Kuaishou Keling introduces the AIGC ecological cooperation platform, connecting clients and creators.

Kuaishou Keling launches the "Future Partner Program" and introduces the AIGC ecological cooperation platform. This platform relies on Keling's high-quality AI image and video generation capabilities to build an AI creative marketing ecosystem, connecting clients and creators, empowering creators to monetize their content. As a creator, you can earn income through project collaborations, participate in various creator competitions and operational activities, and receive official publicity resources and traffic support. As a client, you can access one-stop AI creative marketing services, including customized short videos, short dramas, images, characters, and various AI contents. Kuaishou Keling's AIGC ecological cooperation platform efficiently matches marketing supply and demand, while providing advanced AI technology to empower creators, aiming to improve marketing service efficiency.

Risk warning

Risks include slower than expected AI technology development, policy regulations, and underperformance in gaming.