Graphics card hardware has been iterated, and performance has improved markedly; the expansion of national mobile device compensation policies, and multi-line software and hardware resonance have enabled the development of AI applications and gaming industries.
The Zhitong Finance App learned that Huajin Securities released a research report saying that on the morning of January 7, Beijing time, Nvidia officially unveiled the new RTX50 series of graphics cards at CES 2025. The price has decreased compared to the previous generation, and the performance has improved significantly. On January 8, the Information Office of the State Council held a routine policy briefing to give individual consumers a 15% subsidy for purchasing 3 types of digital products, including mobile phones, tablets, and smartwatch bracelets (maximum subsidy of 500 yuan per item). Supply-side graphics card hardware has been heavily iterated, significantly reducing costs and improving quality and efficiency. Policy-side subsidies have benefited consumers, and multi-line resonance has helped the development of application-side AI and gaming industries.
The main views of Huajin Securities are as follows:
Heavy iteration of supply-side graphics cards, empowering ecological applications with long-term efficiency
The new 50 series video cards include 4 models, namely RTX5070, RTX5070ti, RTX5080, and the flagship RTX5090. The prices are $549, $749, 999, and $1999, respectively (about 4023 yuan, 5,489 yuan, 7,322 yuan, and 14,651 yuan, respectively). The performance of the RTX50 series is 3 times that of the previous generation ADA. The RTX5070, the basic model in the series, is comparable to the previous flagship RTX4090 in terms of performance. Significant upgrades or herald new changes in the field of gaming and graphics processing. Leading hardware manufacturers announced major iterations of graphics cards, speeding up the AIPC process, and software and hardware collaboration to improve quality and efficiency in AI applications, games and other content fields.
Mobile device subsidies expand and continue to inject momentum into smart entertainment
Relevant officials from the National Development and Reform Commission, the Ministry of Finance, the Ministry of Commerce, the People's Bank of China, and the General Administration of Market Supervision presented the situation relating to stepping up the expansion and implementation of the “two new” policies. The expansion was announced during the meeting to support the trade-in of consumer goods: individual consumers who buy 3 types of digital products, such as mobile phones, tablets, and smartwatches (with a single sales price of no more than 6,000 yuan) can enjoy a subsidy of 15% of the product price. Each person can enjoy a subsidy of 1 item per product, with a maximum subsidy of 500 yuan per item.
According to the “2024 China Game Industry Report”, the actual sales revenue of the Chinese mobile game market in 2024 was 238.217 billion yuan, up 5.01% year on year, setting a new market revenue record; the actual sales revenue of China's client game market was 67.981 billion yuan, up 2.56% year on year. Mainly due to the steady performance of leading youth games and the cross-platform release of many new popular mobile games. The policy side continues to subsidize mobile devices, mainly mobile phones, tablets, etc., to benefit consumers on the supply side; combining cross-end high-quality content endowments, it is expected that multi-line resonance will enable industries such as AI applications and games to prosper.
Investment suggestions: Iteration of graphics card hardware, significant performance improvement; expansion of the mobile device national supplement policy, and multi-line resonance of software and hardware to enable the development of AI applications and gaming industries
Recommended attention: Tencent Holdings (00700), NetEase - S (09999), Bilibili - W (09626), Tom Cat (300459.SZ), Kunlun Wanwei (300418.SZ), 37 Entertainment (002555.SZ), Kaiying Network (002517.SZ), Giant Network (002558.SZ), Gibbit (603444.SH), Shenzhou Taiyue (300002.SZ), China Mobile Games (00302), Shunwang Technology (3003.113.11) SZ), Palm Fun Technology ( 300315.SZ), Zhongqingbao (300052.SZ), Blue Cursor (300058.SZ), Insai Group (300781.SZ), Tianyu Digital Technology (002354.SZ), Jiecheng (300182.SZ), Shanghai Film (601595.SH), Kuaishou-W (01024), Yaoji Technology (002605.SZ), Vision China (000681.SZ), Wanxing Technology (300624.SZ), etc.
Risk warning: Policy volatility, risk of macro-environmental fluctuations, hardware performance such as video cards falling short of expectations, etc.
