In Q3 2025, the media industry achieved a net profit attributable to shareholders of RMB 10.1 billion, representing a year-on-year increase of 40%. Notably, the gaming sector's net profit attributable to shareholders surged by 76% year-on-year, demonstrating outstanding performance.
According to Zhitong Finance APP, Dongwu Securities released a research report stating that the media sector's revenue showed slight growth, while profits increased significantly year-over-year. In Q3 2025, the media sector achieved a total revenue of RMB 127.9 billion, representing a 7% year-over-year increase. By industry, the gaming segment performed exceptionally well in Q3 2025, primarily driven by hit products. Advertising and digital media revenue grew slightly, while film, publishing, and broadcasting experienced minor declines to varying degrees. In Q3 2025, the sector reported net profit attributable to shareholders of RMB 10.1 billion, up 40% year-over-year, with the gaming segment's net profit attributable to shareholders surging 76%, showing outstanding performance.
The main points of Dongwu Securities are as follows:
Gaming: Earnings Exceed Expectations; Positive Outlook for New Game Cycle
In Q3 2025, the domestic gaming market generated actual sales revenue of RMB 88.03 billion, down 4.1% year-over-year but up 7.0% quarter-over-quarter. Outstanding performances from Century Huatong's hit mobile games "Endless Winter" and "Kingshot" contributed significantly to sector growth. As of the end of Q3 2025, A-share gaming companies' total contract liabilities amounted to RMB 7.65 billion, an increase of RMB 0.78 billion year-over-year and RMB 0.29 billion quarter-over-quarter, reflecting robust growth in A-share gaming companies' revenue streams. In Q3 2025, A-share gaming companies reported net profit attributable to shareholders of RMB 5.59 billion, up 76% year-over-year and 20% quarter-over-quarter. The bank expects easing competition in the buy-traffic market in 2025, with the new game cycle continuing to drive earnings growth. It also anticipates AI catalyzing an uplift in sector valuations. Recommended stocks include Giant Network, Kaiying Network, Perfect World, G-bits, 37 Interactive Entertainment, and Boton Technology, with attention on ST Huatong, Shengtian Network, and Yaoji Technology.
Marketing: Macroeconomic Recovery Underway; Strong Resilience Among Leading Enterprises
The entire marketing industry achieved revenue of RMB 45.33 billion in Q3 2025, representing a 9% year-over-year increase. This marks two consecutive quarters of revenue growth recovery, reflecting a macroeconomic rebound and improved advertiser sentiment. Structural highlights emerged in sub-sectors: AI technology enhanced placement efficiency, with advertisers in high-frequency consumption categories such as internet, food and beverage, and daily chemicals maintaining resilience. Leading advertising firms leveraged data accumulation and AI technology to further consolidate their market share. In Q3 2025, the entire marketing industry reported net profit attributable to shareholders of RMB 1.63 billion, up 14% year-over-year, reversing prior losses. Industry leader Focus Media benefited from increased ad spending in instant online shopping, boosting revenue growth quarter-over-quarter. Continued improvement in profitability is expected, maintaining a “Buy” rating.
Cinema and Theater Lines: Improved Efficiency Turns Losses into Profits; Film Market Poised to Maintain Positive Momentum
In Q3 2025, the cinema and theater line industry generated revenue of RMB 8.61 billion, down 2% year-over-year. Total gross profit for the film industry in Q3 2025 reached RMB 2.05 billion, up 30% year-over-year, with a gross margin of 23.8%, improving by 5.9 percentage points year-over-year. The industry’s net profit attributable to shareholders totaled RMB 0.9 billion in Q3 2025, turning around from losses in the previous year. As of October 30, 2025, the nationwide box office revenue for the year reached approximately RMB 44.5 billion, surpassing the total box office revenue for the full year of 2024. With more high-quality domestic and international films set for release, China's film market is expected to maintain its positive momentum. Recommendations include Shanghai Film, Wanda Film, and Enlight Media, with attention on H&R Century, Jiesheng Shares, Huace Film & TV, and Hengdian Film.
Digital Media: Revenue increased by 8%, while net profit margin declined.
In Q3 2025, the digital media industry's revenue grew by 8% year-over-year to RMB 6.5 billion, while net profit attributable to shareholders dropped by 28% year-over-year to RMB 320 million, and the net profit margin attributable to shareholders fell by 2.4 percentage points to 4.9%. Mango Super Media’s Q3 revenue reached RMB 3.1 billion, a year-over-year increase of 6.6%; its core business, Mango TV, saw Q3 revenue remain basically flat year-over-year, with advertising revenue achieving positive growth. The Q3 net profit attributable to shareholders was RMB 250 million, down 33.5% year-over-year. As the advertising market shows marginal improvement and high-quality content drives membership revenue growth, the company is expected to return to a growth trajectory in 2026. We maintain a 'Buy' rating for the company.
Publishing and Newspapers: Revenue growth faces pressure.
In Q3 2025, the publishing and newspaper industry's revenue declined by 5% year-over-year to RMB 29.84 billion, while net profit attributable to shareholders increased by 13% year-over-year to RMB 2.47 billion, mainly due to the impact of income tax policy. Considering financial stability and dividend yield, we recommend Southern Media and Shandong Publishing; it is also advisable to keep an eye on Central Plains Media, Central South Publishing, Phoenix Publishing, Yangtze River Media, and Anhui Xinhua Media; for other publishing sectors, we recommend Chinese Online, among others.
Risk Warning: Slower-than-expected macroeconomic recovery; policy risks; product launches falling short of expectations, etc.